State Taxes

This is an interesting look at the issue of the tax burden on residents of various states, as the rulers of the PRC debate increasing their income taxes even more.  The wiser among them realize this will just compound the problem even more by motivating more people and corporations to move to nearby states with no income tax, such as Nevada and Washington.

As pointed out in the article, income taxes are just one piece of the overall tax burden.  Most states without an income tax make it up through other means, such as sales and property taxes.  This is why there is no cut and dried answer to the question of which state has the lowest overall tax burden.  The answer would be different if you are a property owner or a renter. 

However, the cited examples of average per capita state taxes are interesting.  For 2000, Alabama had the lowest ($2,117) and Connecticut the highest ($4,600).  With the PRC's average burden rated at the tenth highest ($3,550), it seems like too many rulers in Sacramento feel safe in raising taxes. 

Also interesting in this article is the almost universal appeal of soaking nicotine addicts with increasing taxes.  They have become virtual pariahs of our society, supposedly deserving of increasing financial punishment for their sin.

KMK

- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 3/30/2003 11:27:00 AM Send this post: