Local Sales Tax Allocation History reports from the Texas Comptroller of Public accounts show how the Government Shutdown for 34 days potentially affected our local economy.
The Government shutdown went on for 34 days beginning on December 22, 2018, and ended on January 25, 2019. During this time federal employees who have high purchasing power into the local economy did not receive pay.
Records for local sales tax allocation for Eagle Pass shows a decrease in sales during this time.
During the month of December 2018, the City of Eagle Pass received $ 224,970.10 in sales tax allocation funds. In the month of January when the shutdown was at its long stretch sales tax allocation for the city decreased by -6 % to $ 210,064.11.
Interestingly in the first 10 days of February 2019, the City of Eagle Pass Sales Tax allocation has increased by 69 % as compared to the month of January.
The first 10 days of the month of February has yielded $355,422.41 for the City of Eagle Pass in sales tax revenues. During the shutdown period, The city of Eagle Pass experienced a net loss of approximately $1.9million dollars in sales from our local economy.
Reminder, for every one cent that’s accounted in sales tax allocation, figures $100 are spent into the local economy.
This loss could be a consequence of numerous factors of which one could be including the ill effects of the shutdown.
With close to 1,000 federal employees in the community you can clearly see the negative impact that was created by the government shutdown and their withholding of pay.