A new study revealed on Wednesday that state taxes favor the richest residents, according to the Institute on Taxation and Economic Policy.
The analysis, which looked at each state’s local tax burden, found the bottom fifth of earners pay up to seven times as much of their income in taxes as the wealthiest residents in states such as Washington.
The study finds in 2015 the poorest fifth of Americans will pay on average 10.9 percent of their income in state and local taxes, the middle fifth will average 9.4 percent and the top 1 percent will pay 5.4 percent.
The study ranks each state by measuring how regressive (less equal) or progress (more equal) systems are, based on income before and after taxes in each income group.
“Virtually every state’s tax system is fundamentally unfair,” researchers wrote in the report. “Unfair tax systems not only exacerbate widening incoming inequality in the short term, but they also will leave states struggling to raise enough revenue to meet their basic needs in the long term.” Read more at the New York Times.
{Andy Heller-Matzav.com Newscenter}
Ha ha, my secretary pays more taxes than me. So lets punish the middle class because of this. Huh?
Read the full article it is written in a tricky way to push some agenda that always hurts the middle class.
They deal in fifths. Except for the rich, they single out the top 1%. That is a very specific group of people that; a) are living on dividends and investments that have a flat rate. Their catual income is taxed at 50% or more. b)The taxes that are “hurting the poor” are sales taxes- which in most states don’t affect necessities like clothes and food. For these people the sales tax is offset by tax returns which they ‘receive’, not pay. This is not factored into the article.
Please note that this is discussing STATE income taxes, not Federal. And yes, sales taxes hit the non-rich (including you, the middle class) much more – that is one way how states make up not taxing big incomes and capital gains. You pay twice – once in taxes and once at the checkout. Not mad yet? Maybe your math skills need a little brushup.