ETSU report: Tax collection during 2013 holiday season "very weak" (Johnson City: sales, 2014)

[Serious Conversation]

Retail sales tax collections were very poor last quarter, especially in Bristol, and have been in a slump for most of the past two years. This provides further proof of the regional slump.

ETSU report: Retail, employment data show regional economy in a slump | Kingsport Times-News

[queenladybug817]

Guess I need to spend more to help the local economy. Hubby won't be pleased.

Anyway, I am quick to blame some of it on the Internet and Online Shopping. Didn't TN just now start collecting tax (beginning of 2014) on online purchases? I'm sure a lot of people were doing that to avoid the high sales tax here, but maybe some of that will change now?

I know that wasn't all of it, but I'm sure it contributes a significant amount.

[jchometeam]

Originally Posted by Emigrations

Retail sales tax collections were very poor last quarter, especially in Bristol, and have been in a slump for most of the past two years. This provides further proof of the regional slump.

ETSU report: Retail, employment data show regional economy in a slump | Kingsport Times-News

Well im glad you are now in Indy now, maybe you will like it better there.

Personally ive always thought that was an indicator of consumer stupidity. I save my money instead of spend it, last time i knew thats thr only way to build wealth so i can donate to worthy causes in the tri cities.

Having said that, i agree that the economy is slumping though im not particularly worried about that

[Ted Bear]

Pretty consistent with the national picture.

A few of the high end retailers did "okay" (think Tiffany and William Sonoma, for example), but the broad based retailers--everybody from Wal-Mart to JC Penny had a pretty lousy holiday season. Ask the auto dealers as well. They too have inventory up to their eyeballs, and nobody to buy the stuff--even with interest rates at zero and a myriad of incentives still in place.

People just do not want, or have the money, to spend on incidental crap. People are signaling that we are headed into a period of severe deflation and that is going to be VERY painful for anyone who is leveraged (in debt), especially the US Government. Folks are already in debt up to their eyeballs and have no desire/ability to spend any more--regardless of the "attractiveness" of the "deals".

So they don't buy things unless they absolutely need them. Hence, the decline in sales, and sales tax.

And don't forget, we got here by kicking the can down the road to the tune of more than $100 BILLION a month in stimulative "Quantitative Easing". That's several TRLLION dollars over the past few years. As this 'incentive' is withdrawn, out of necessity, spending is likely to retreat as well.

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Johnson City MSA leads Tri-Cities to a small sales tax collection increase in Jan.

This isn't an apples to apples comparison because sales tax collects are retails sales are not the same thing. But it does offer a more current look at spending patterns.
But if you're looking for an economic red flag look at foreclosure filing for the first two months of this year:
http://donfenley.com/2014/03/13/john...traight-month/