State and local governments collect record-breaking amount of tax revenue

In many ways it sounds like bad news, especially if you don't like paying taxes.

A new report from the U.S. Census Bureau that came out last week shows that state and local governments in Fiscal Year 2011 collected $3.4 trillion in revenue from all sources, an all-time record.

But on the other hand, experts say the increased revenue is evidence of a slowly recovering economy.

“Tax revenue increased in 2011 for the first time in 2 years, led by gains in sales and gross receipt taxes and individual income taxes,” the report said.

It also said unemployment compensation declined for the first time in 4 years.