The amount of revenue Nevada draws from taxes is growing at a much slower pace than it did decades ago, and a new report says income inequality is partly to blame.
A report released Monday by credit ratings agency Standard & Poor's found that stagnant wages among the masses have dampened consumer spending, which in turn affects state revenues. It especially affects states like Nevada that depend heavily on sales tax and don't tax income.
S&P says that Nevada's average annual tax revenue growth was nearly 14% from 1950-1979, but dropped to 5% from 2000 to 2009. The pace has since picked up to about 6% a year.
Residents could feel the pinch of sluggish state tax growth because the money funds schools and other vital services. (AP)
