Thursday, November 14, 2019

Who Pays - State and Local Taxation?

Easy to see why Trump is trying to move tax home from New York to Florida. Florida state and local taxes are extremely regressive, the richer you are the smaller percentage of income you pay in taxes.

The following link ranks the states from least equitable to more equitable, and provides details for each state.

Forty-five states have regressive tax systems that exacerbate income inequality. When tax systems rely on the lowest-income earners to pay the greatest proportion of their income in state and local taxes, gaps between the most affluent and the rest of us continue to grow.

The ITEP Tax Inequality Index measures the effects of each state’s tax system on income inequality by assessing the comparative impact a state’s tax system has on the post-tax incomes of taxpayers at different income levels.


ITEP Tax Inequality Index
States in order of rank from least equitable to more equitable
1 Washington 14 Louisiana 27 Georgia 40 Utah
2 Texas 15 Hawaii 28 Missouri 41 Oregon
3 Florida 16 New Hampshire 29 Connecticut 42 Maryland
4 South Dakota 17 North Dakota 30 Massachusetts 43 Montana
5 Nevada 18 Alabama 31 North Carolina 44 New York
6 Tennessee 19 New Mexico 32 Rhode Island 45 Maine
7 Pennsylvania 20 Arkansas 33 Virginia 46 New Jersey
8 Illinois 21 Iowa 34 Wisconsin 47 Minnesota
9 Oklahoma 22 Michigan 35 Colorado 48 Delaware
10 Wyoming 23 Kansas 36 Nebraska 49 Vermont
11 Arizona 24 Mississippi 37 West Virginia 50 District of Columbia
12 Indiana 25 Kentucky 38 Idaho 51 California
13 Ohio 26 Alaska 39 South Carolina


Link for New York state and local taxes per income group


Link for Florida state and local taxes per income group

Eg., lowest 20% in income pay 12.7% of income in taxes
top 1% pay 2.3% in income


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