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Wed Oct 17, 2018, 07:51 PM

Study: Residents With Lower Incomes Pay a Higher Effective Tax Rate

States and localities are filling their coffers by disproportionately burdening lower-income residents, who are taxed at a higher effective rate than top earners, according to a studyreleased Wednesday by a tax policy group.

The 50-state analysis by the nonpartisan Institute on Taxation and Economic Policy 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, Carl Davis, one of the authors of the study, told reporters in a conference call.

Nationally, the people in the bottom 20 percent of earners face a state and local tax rate that is 50 percent higher than the top 1 percent of households, the study said. That does not mean lower-income people pay more in absolute dollars, only that their effective tax rates are higher. The national average effective state and local tax rate is 11.4 percent for the bottom quintile of taxpayers, compared to 7.4 percent for the top 1 percent of income earners, the study said.

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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Reply Study: Residents With Lower Incomes Pay a Higher Effective Tax Rate (Original post)
SunSeeker Oct 2018 OP
pbmus Oct 2018 #1
maxsolomon Oct 2018 #2
Wellstone ruled Oct 2018 #3
SunSeeker Oct 2018 #4
Wellstone ruled Oct 2018 #5
roamer65 Oct 2018 #6

Response to SunSeeker (Original post)

Wed Oct 17, 2018, 08:15 PM

1. Lower income residents pay more for everything they purchase also..

That is our fucked Up system...

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Response to SunSeeker (Original post)

Wed Oct 17, 2018, 08:19 PM

2. WA State is Exhibit A. No state income tax.

Everything is sales tax, fees, and property taxes. Sales is generally >10%. Property taxes are passed on in rent.

People in WA go to OR to buy major purchases to avoid sales tax.

Meanwhile, Bezos, Gates, & Allen (RIP) pay nothing into state coffers for their income.

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Response to SunSeeker (Original post)

Wed Oct 17, 2018, 08:22 PM

3. Same for Nevada.

Sales Tax,Fees up the ass on every Utility you use. As far as the story,that news is old news to us older persons.

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Response to Wellstone ruled (Reply #3)

Wed Oct 17, 2018, 08:33 PM

4. Yes, but it bears repeating, especially with GOP lies about how 47% of us "pay no taxes."

What the GOP is misleadingly alluding to is federal income taxes, since 47% of us are too poor to pay income taxes. But there is no income minimum on sales taxes, fees, etc. That is how they fleece the poor.

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Response to SunSeeker (Reply #4)

Thu Oct 18, 2018, 12:17 AM

5. Yupper,

Got to love the Rethug Talking Points. Frank Luntz and Company are masters at focus grouping talking points till they perfect each and everyone.

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Response to SunSeeker (Original post)

Thu Oct 18, 2018, 12:28 AM

6. I wish we would go to a progressive income tax in MI.

Take the burden off lower income folks and push it up to the wealthier folks.

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