Mon Feb 4, 2013, 10:34 PM
hfojvt (35,805 posts)
Updated report - Who pays?
ITEP has issued another report on state taxes, and who pays them. From the last report in 2007 http://journals.democraticunderground.com/hfojvt/159 , it was found that the top 1% pays a lower rate than the bottom 20% in ALL 50 states.
That report was from 2007. Since then we have experienced the Bush recession and many states have increased their taxes to compensate for lower revenue. The new report is here http://www.itep.org/pdf/whopaysreport.pdf
23 of 50 states increased taxes on the poorest 20% - in order of the size of increase, those are - ME, NV, UT, LA, RI, NH, MT, NC, AZ, CA, IN, OK, TX, WI, NJ, VT, SD, MI, HI, IL, PA, NY, and KS.
Michigan, Hawaii, Illinois, Pennsylvania all increased taxes on the poor by 0.8%. New York by 0.9% and Kansas by 1.1%.
Three of those also decreased tax rates on the richest 1% - Michigan by 0.5%, New York by 0.3% and Kansas by 2%.
28 of 50 states raised taxes on the top 1%, including Oregon, Nevada, Rhode Island and Illinois by 0.8%, California by 1.4% and Hawaii by 1.7%.
19 of 50 states cut taxes for the top 1% - including OH, OK, AL, WV, NY, NC,NE, VA,DE,TN,KY,MN,NJ, MI, SC,LA,ND, GA, and Kansas.
Michigan and South Carolina by 0.5%, Louisiana by 0.6%, North Dakota by 0.7%, Georgia by 0.8% and Kansas by 2%.
Wyoming has the lowest tax rate on the top 1% with a 1.6% rate while taxing the poorest 20% at 8.2%. South Dakota is 2nd, taxing the richest at 2.1% and the poorest at 11.6%. Florida at 2.3% versus 13.2%. With Alaska, New Hampshire, Nevada, Tennessee and Washington also taxing the richest 1% at less than 3% with Washington taxing the poorest most heavily at 16.9%
8 states tax the richest 1% at over 6.5% - NY, ME and WI at 6.9%. NJ and OR at 7%, VT and HI at 8% and California at 8.8%.
Only 4 states tax the poorest 20% at less than 8%. The leaders are Delaware at 5.7%. Montana at 6.4%. Alaska at 7% and South Carolina at 7.1%.
Another nine tax at less than 9% - WY, ID, OR, NH, VA, WV, VT, MN and CO.
Four states tax the poorest 20% at over 13%. Hawaii at 13%, Florida at 13,2%, Illinois at 13.8% and Washington at 16.9% Five tax them at over 12% - PA at 12%, RI at 12.1%, IN at 12.3%, TX at 12.6% and AZ at 12.9%.
Seven more tax them at over 11% - Arkansas, Ohio, South Dakota, Georgia, New Jersey, Tennessee and Connecticut.
Those are the highlights. The main driver for increasing taxes on the poor are sales taxes and for shifting them from the poor to the rich are income taxes, although many state income taxes are too flat.
ITEP put that in a graphic
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Response to hfojvt (Original post)
Tue Feb 5, 2013, 12:09 AM
hfojvt (35,805 posts)
1. one sort of amazing thing is
all of the blue states with regressive taxes.
I mean it is easy to understand Kansas increasing taxes on the poor (although it was the Democratic Governor Mark Parkinson who lead that drive while conservatives fought it) and cutting taxes for the rich.
But what is the excuse for New York and Pennsylvania? Why are Illinois taxes so regressive?
Hawaii I can understand. It makes sense for them to rely on income taxes to a degree. In that way a good portion of their taxes are paid by tourists rather than by residents. But they could increase the credit for sales taxes on their income tax.
And what the heck is the deal with Washington? THe highest tax rate on the poor by far. And Illinois is 2nd. Meanwhile 3 of the 4 lowest tax-rate states for the poor are red states - Alaska, Montana, and South Carolina.
It's kinda mind-boggling.