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Income tax only accounts for some of the taxes a state can take in. Property and sales tax are also forms states use to collect income, and they happen to be re
by JamesLeonis 15y ago
Income tax only accounts for some of the taxes a state can take in. Property and sales tax are also forms states use to collect income, and they happen to be regressive in most cases.
If you look at the CFED chart [2], those nine states [1] with no income tax make up the top 9 slots where the bottom 20% pay many times more in taxes than the top 1% (as a percentage of income), from 3.8 times (Tennessee) to a whopping 6.7 times (Washington).
[1] http://www.irs.gov/efile/article/0,,id=130684,00.html http://www.irs.gov/efile/article/0,,id=130684,00.html
[2] http://scorecard.assetsandopportunity.org/2012/measure/tax-burden-by-income http://scorecard.assetsandopportunity.org/2012/measure/tax-b...
- pgisadickyup 15y agohttp://bastiat.org/en/the_law.html http://bastiat.org/en/the_law.html
- Drbble 15y agoNote that welfare benefits can cancel out a lot of taxes and restore the progressive effect.
- yummyfajitas 15y ago...states [1] with no income tax make up the top 9 slots where the bottom 20% pay many times more in taxes than the top 1%... By itself, this statistic is meaningless. A state with a progressive tax system but lower rates of inequality will score poorly on this metric than a state with higher inequality but an identical tax system. I.e., you might be showing Tennessee has a regressive tax system, or you might be showing Tennessee has low inequality. Without more details we cannot determine this.