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Nationwide Study Released Confirming Lower Income Residents Pay Higher Taxes

Written by on October 18, 2018

A Study released by the Institute on Taxation and Economic Policy revealed “Who Pays: A Distributional Analysis of the Tax System in All 50 States and the District of Columbia,” and its assessment of tax fairness.  The study measured the effective state and local tax rates paid by all income groups and revealed that States and municipal governments are filling their coffers by disproportionately burdening lower-income residents who are taxed at higher effective rates than top earners.

According to USnews.com “The 50-state analysis by the nonpartisan Institute found that the lower one’s income, the higher the effective overall state and local tax rate. The study includes sales taxes, excise taxes, user fees and income taxes. In fact, states which boast low income taxes are often the most likely to have systems that end up shifting the fiscal burden to lower-income residents…”

For the full article and list of 10 states that levy the highest taxes, go to: https://www.usnews.com/news/best-states/articles/2018-10-17/residents-with-lower-incomes-pay-a-higher-effective-tax-rate-study.

   


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