Economists often suggest that taxes should be based on the benefits received, and this is especially true for real estate and improvements. In Texas, the retail and manufacturing sectors have been significantly impacted by the COVID-19 pandemic and the federal government's response. Cotton was once a major industry in Texas, but it has been in decline since the 1920s due to a variety of factors, including falling demand during the Great Depression, labor force losses during World War II, competition from other cotton production centers abroad, and federal efforts to keep production low to maintain prices. New York is an outlier when it comes to corporate income tax, as localities (mainly New York City) rely more heavily on it than the state itself. In New England, sales taxes account for less than 1 percent of local government tax revenues, while in the Rocky Mountain region they account for 25.1 percent.
The aerospace industry has had a positive effect on related industries such as telecommunications, information technology, and airlines and travel booking. Property taxes are a major source of income for local governments in 13 states, with Maine leading at 99.0 percent. On the other hand, only four states have property taxes accounting for less than half of their local revenues. The Texas Good Roads and Transportation Association was established in 1932 to promote public spending on road construction and maintenance. The collection of taxes on local options sales is an important source of income in the Rocky Mountain region, but it plays a negligible role in New England. Despite not being as dominant in other economic sectors, Texas-based companies are some of the leading companies in their respective industries.
