The Tax Man Cometh: How Does Your State Compare?

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While most Americans focus on federal tax rates, a new report shows the state and local tax burden can be equally painful.

The average tax burden in Connecticut, New York and New Jersey exceeds 12 percent, which is roughly equal to the national federal income tax average of 12.2 percent.

But the lengthy study by the Tax Foundation, a nonpartisan, nonprofit think tank, found more remarkable comparisons between states.

For example, the five lowest tax states, Wyoming, Tennessee, South Dakota, Nevada and Alaska pay about 40 percent less in taxes than the highest tax states, New Jersey, New York, Connecticut, Wisconsin and Rhode Island.

“How much lawmakers spend is driven by who elects them,” said Tax Foundation economist Marc Robyn. “A small government state, they elect small government type leaders and they won’t be spending as much.”

There is also a massive disparity among states that are friendly to business. When researchers combined the costs of government regulation and red tape with the total tax burden of income, property, sales, corporate and unemployment taxes, the worst states to do business are New York, California, New Jersey, Connecticut and Ohio. The best are South Dakota, Alaska, Wyoming, Nevada and Florida. Powerhouse Texas comes in at 13.

foxnews.com/politics/2011/03/02/tax-man-cometh-does-state-compare/

 

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Link to the study:

taxfoundation.org/publications/show/2181.html

 

[tuscany]

I live in California, so the tax man cometh, taketh, taketh somemore, taketh once again, then DOESN"T leaveth…