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How tax-friendly is your state?

Posted: Fri Apr 14, 2006 3:14 pm
by Phlegm
From CNN:

NEW YORK - The Tax Foundation, a nonprofit fiscal policy research group, estimated the average taxpayer's total state and local tax burden for 2006 in each of the 50 states and the District of Columbia.

That burden reflects what residents pay in state and local income taxes, property taxes, sales taxes, luxury taxes and fuel taxes, among others. It also factors in the portion of business taxes passed along to state residents through higher prices, lower wages or lower profits.

The burden is a measure of what a state and its local governments collect as a percentage of per capita income. So, for example, with a state/local tax burden of 10.1 percent, the state of Arizona and its local governments get about a tenth of what its residents make per capita.

Of course, if you live in Arizona your personal tax burden may be higher or lower. Much will depend, as it would in any state, on whether you own your home, where in the state you live, how much you make and the source of your income.

Rank| State| Tax Burden as % of Income

1 Maine 13.50%
2 New York 12.90%
- District of Columbia 12.80%
3 Ohio 12.00%
4 Minnesota 11.90%
5 Hawaii 11.70%
6 Nebraska 11.60%
7 Wisconsin 11.60%
8 Rhode Island 11.50%
9 Connecticut 11.30%
10 Vermont 11.10%
11 Louisiana 11.00%
12 Indiana 11.00%
14 Illinois 10.90%
15 California 10.90%
13 Washington 10.90%
16 Michigan 10.80%
17 New Jersey 10.80%
18 Kansas 10.70%
19 Maryland 10.70%
20 Kentucky 10.70%
- United States 10.60%
21 West Virginia 10.60%
23 North Carolina 10.50%
22 Utah 10.50%
26 Iowa 10.40%
25 Georgia 10.40%
24 Pennsylvania 10.40%
27 Arkansas 10.30%
28 Massachusetts 10.30%
29 Mississippi 10.20%
30 South Carolina 10.20%
31 Idaho 10.20%
32 Arizona 10.10%
33 Wyoming 10.10%
34 Missouri 9.90%
36 New Mexico 9.90%
35 Oregon 9.90%
37 North Dakota 9.80%
38 Colorado 9.80%
39 Florida 9.70%
40 Oklahoma 9.60%
41 Virginia 9.50%
42 Montana 9.50%
43 Nevada 9.50%
44 Texas 9.40%
45 South Dakota 9.20%
46 Alabama 8.80%
47 Tennessee 8.60%
48 Delaware 8.40%
49 New Hampshire 7.30%
50 Alaska 6.60%

Posted: Fri Apr 14, 2006 3:30 pm
by DangerPaul
6 Nebraska 11.60%


I for sure thought we would be #3... :( don't let the politicians get wind of this, they will make sure we are number 3 by the end of the decade.

Re: How tax-friendly is your state?

Posted: Fri Apr 14, 2006 3:53 pm
by Captain Insano
Phlegm wrote:From CNN:

NEW YORK - The Tax Foundation, a nonprofit fiscal policy research group, estimated the average taxpayer's total state and local tax burden for 2006 in each of the 50 states and the District of Columbia.

That burden reflects what residents pay in state and local income taxes, property taxes, sales taxes, luxury taxes and fuel taxes, among others. It also factors in the portion of business taxes passed along to state residents through higher prices, lower wages or lower profits.

The burden is a measure of what a state and its local governments collect as a percentage of per capita income. So, for example, with a state/local tax burden of 10.1 percent, the state of Arizona and its local governments get about a tenth of what its residents make per capita.

Of course, if you live in Arizona your personal tax burden may be higher or lower. Much will depend, as it would in any state, on whether you own your home, where in the state you live, how much you make and the source of your income.

Rank| State| Tax Burden as % of Income

1 Maine 13.50%
2 New York 12.90%
- District of Columbia 12.80%
3 Ohio 12.00%
4 Minnesota 11.90%
5 Hawaii 11.70%
6 Nebraska 11.60%
7 Wisconsin 11.60%
8 Rhode Island 11.50%
9 Connecticut 11.30%
10 Vermont 11.10%
11 Louisiana 11.00%
12 Indiana 11.00%
14 Illinois 10.90%
15 California 10.90%
13 Washington 10.90%
16 Michigan 10.80%
17 New Jersey 10.80%
18 Kansas 10.70%
19 Maryland 10.70%
20 Kentucky 10.70%
- United States 10.60%
21 West Virginia 10.60%
23 North Carolina 10.50%
22 Utah 10.50%
26 Iowa 10.40%
25 Georgia 10.40%
24 Pennsylvania 10.40%
27 Arkansas 10.30%
28 Massachusetts 10.30%
29 Mississippi 10.20%
30 South Carolina 10.20%
31 Idaho 10.20%
32 Arizona 10.10%
33 Wyoming 10.10%
34 Missouri 9.90%
36 New Mexico 9.90%
35 Oregon 9.90%
37 North Dakota 9.80%
38 Colorado 9.80%
39 Florida 9.70%
40 Oklahoma 9.60%
41 Virginia 9.50%
42 Montana 9.50%
43 Nevada 9.50%
44 Texas 9.40%
45 South Dakota 9.20%
46 Alabama 8.80%
47 Tennessee 8.60%
48 Delaware 8.40%
49 New Hampshire 7.30%
50 Alaska 6.60%



I don't consider that a very accurate article. The thing people don't understand is just how many taxes you pay that don't revolve around the obvious stuff like state and fed income taxes.

Nevada happens to have one of the lowest tax burdens when all aspects are considered. It is one of the top 5 states to open a business in too.

Posted: Fri Apr 14, 2006 6:46 pm
by Arlos
That's because Nevada gets the vast majority of money it needs by taxing (lightly) the casinos. The casinos rake in so much money every year, even a tiny percentage translates into huge tax revenue. Alaska is much the same way, but due to oil instead of casinos. For years and years, Alaskan residents got free cash every year from the state government, which was surplus from money the state'd taken in from the oil companies. Not insignificant money, either, was at like $1500 or so last I heard.

-Arlos

Posted: Fri Apr 14, 2006 11:04 pm
by Captain Insano
I agree with you. I'm just saying that the article is very misleading IMO.

I amazes me when I listen to the average American talk about paying 27% of their income or 22% of their income in taxes and thinking thats all they pay.


My guess is that if you added up every tax/fee/tariff you paid to the gov't it would be about 50% of the money you made.

Posted: Sat Apr 15, 2006 12:10 am
by dammuzis
i know from other studies i have read oregon actualy has a higher tax burden then california

Posted: Sat Apr 15, 2006 7:35 am
by Minrott
Go wisconsin, keep pissing away my money on gravel roads and a broken school system.

Posted: Sat Apr 15, 2006 10:52 pm
by Alphonso
Alaskan residents got free cash every year from the state government, which was surplus from money the state'd taken in from the oil companies. Not insignificant money, either, was at like $1500 or so last I heard.



Last year we got $800 from the state. I still think that the extra cost of basic goods here by far out weighs the dividend from the state we get.

plus how else would the state keep people here for 8 months of dark. :lol:

Posted: Sat Apr 15, 2006 10:57 pm
by Harrison
8 months of dark = own