Recovering economy boosts revenue; states Q1 saw 5.6% rise in taxes.

Recovering economy boosts revenue; states Q1 saw 5.6% rise in taxes.

States have discretion in spending their $2.7 bln share of settlement.

States have discretion in spending their $2.7 bln share of settlement.

Tax incentives have become a competitive weapon as states try to lure employers or keep them happy.