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Most Regressive Tax States

November 18th, 2009 · 3 Comments

The Institute on Taxation & Economic Policy has published a study titled Who Pays? A Distributional Analysis of the Tax Systems in All 50 States. 

Matthew Gardner, the lead author of the study, says that most states’ tax systems are highly regressive: 

In the coming months, lawmakers across the nation will be forced to make difficult decisions about budget-balancing tax change which makes it vital to understand who is hit hardest by state and local taxes right now.

The harsh reality is that most states require their poor and middle income taxpayers to pay the most taxes as a share of income. 

Nationwide, Gardner’s study found that middle- and low-income non-elderly families pay much higher percentages of their income in state and local taxes than do the well-0ff.

Here are the 10 most regressive states:

  1. Washington                               
  2. Florida                                       
  3. South Dakota                           
  4. Tennessee                                 
  5. Texas                                           
  6. Illinois                                     
  7. Arizona                                        
  8. Nevada                                          
  9. Pennsylvania                            
  10. Alabama

Click here for the complete study.

Tags: State Taxes · Tax Policy

3 responses so far ↓

  • 1 Daniel // Nov 18, 2010 at 11:02 am

    How fucked up is that. Keep the rich even richer, and keep the poor even poorer.

  • 2 CL Robert Johnstone // Nov 20, 2010 at 3:06 am

    (Hope 2010 isn’t the same, but..)
    What a pathetic, tragic, and totally preventable #1 scar for Washington.
    We can’t afford to make our schools more energy efficient (R-52), we can’t have a family making $700K/yr pay an extra $1250/mo, or an individual making $250K/yr pay another $208/mo, even if it lowers most property taxes and B&O taxes for most small businesses (I-1098). But we can have more than 1 of 7 on food stamps, 800,000 Washingtonians in poverty, among America’s highest numbers in 51 years of estimates..
    Thanks to the likes of Tim Eyman, Mr. six-figure umbilical from ‘philanthropic’ campaigns, the trickle down kool aid flows in the PNW, and unfortunately across the land. Our kids are falling behind the world in basic math and science. Suppose it has anything to do with our adult population’s trouble with basic math?
    I’m no lawyer. I’m a 22yr civil servant, and I’m opinionated by bloodline. Can someone explain in fewer words than this rant how extended much less permanent tax cuts will improve revenues, get our states and nation out of debt, rebuild its crumbling infrastructure, and put it’s people to work?!
    When does it end? How dark must it get before Americans see light?

  • 3 Peter // Nov 20, 2010 at 9:56 am

    Daniel,

    It’s tough living in a society that rewards hard work, intelligence and wise choices. Some people hate that about America.

    It’s not surprising that people who goofed off in high school, drank their way through college while majoring in basket weaving or played video games throughout their youth while failing to read a single book would demand that the few who have used their time wisely and busted their asses to earn what they have give them some of their money.

    Still, it’s awfully weak.

    People who blame others for their problems have problems because they blame others for their problems.

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