WSAW NewsChannel 7  | Central WI, Wausau, Rhinelander  |  News, Weather, Sports

Taxing Problem

By: Associated Press
By: Associated Press

A national study says state and local taxes take a bigger chunk of income from middle-class and poor Wisconsin families than rich ones.



The Institute on Taxation and Economic Policy in Washington says the richest one percent of Wisconsin taxpayers paid about eight percent of their income in state and local taxes last year. Nearly six percent after federal itemized deductions.



By comparison, those earning between $30,000 and $48,000 paid nearly 12 percent -- or 11 percent after the deductions.



The poorest 20 percent of taxpayers with incomes of less than $18,000 paid a little more than ten percent in state and local taxes. They were relatively unchanged with federal deductions.





Extended Web Coverage



An Analysis of the Tax Systems in all 50 States



By an overwhelming margin, most states tax their middle- and low-income families far more heavily than the wealthy, according to a new study by the Institute on Taxation & Economic Policy.



Nationwide, middle-income families pay almost 10 percent of their earnings in state and local taxes and poor families pay more than 11 percent. But the richest people effectively pay only 5.2 percent of their income in state and local taxes.



Since 1989, state and local taxes have risen on low- and middle-income taxpayers, but have fallen on the very wealthiest.



Ten states — Washington, Florida, Tennessee, South Dakota, Texas, Illinois, Michigan, Pennsylvania, Nevada, and Alabama — are particularly regressive. These “Terrible Ten” states ask poor families — those in the bottom 20 percent of the income scale — to pay up to 5.5 times as great a share of their earnings in taxes as do the wealthy. Middle-income families in the “Terrible Ten” states pay up to 3.5 times as high a share of their income as the wealthiest families.



The least regressive states are Delaware, Montana, Vermont and California. These states have progressive personal income taxes and/or low reliance on sales and excise taxes.












Who Pays






























































































































































































































































































































Who Pays?

An Analysis of the Tax Systems in All 50 States


% of income each class pays in taxes
per state

State Poorest

20%
Middle

60%
Top

1%
Alabama 10.6% 9.5% 4.9%
Alaska 3.8 3.0 2.8
Arizona 12.5 9.7 6.6
Arkansas 11.2 10.8 7.8
California 11.3 9.4 10.6
Colorado 9.9 9.2 6.8
Connecticut 10.3 10.4 6.4
Delaware 4.7 5.4 6.9
D.C. 8.4 10.9 8.6
Florida 14.4 9.9 3.0
Georgia 10.9 9.9 7.4
Hawaii 12.6 11.2 8.0
Idaho 9.7 9.3 8.7
Illinois 13.1 10.4 5.8
Indiana 11.7 9.9 6.3
Iowa 10.6 10.4 7.9
Kansas 11.5 10.4 8.0
Kentucky 9.6 10.0 7.8
Louisiana 11.5 9.5 6.0
Maine 10.0 10.2 9.7
Maryland 9.4 9.5 7.6
Massachusetts 8.6 9.2 6.8
Michigan 13.3 11.1 6.7
Minnesota 10.5 10.4 9.3
Mississippi 9.9 9.7 6.9
Missouri 10.0 9.5 7.4
Montana 6.1 7.0 7.2
Nebraska 10.6 10.3 9.4
Nevada 8.3 6.3 2.0
New Hampshire 8.1 5.8 2.4
New Jersey 12.4 9.8 8.2
New Mexico 12.1 10.4 8.7
New York 12.8 12.0 9.1
North Carolina 10.5 10.0 8.8
North Dakota 10.2 9.1 6.5
Ohio 10.9 10.7 9.7
Oklahoma 12.0 11.2 7.9
Oregon 9.4 8.5 8.9
Pennsylvania 11.4 9.1 4.8
Rhode Island 13.0 10.7 8.6
South Carolina 7.9 9.0 2.3
South Dakota 10.0 9.0 2.3
Tennessee 11.7 8.8 3.3
Texas 11.4 8.3 3.5
Utah 11.5 11.0 7.6
Vermont 10.0 9.8 9.7
Virginia 9.1 8.4 7.0
Washington 17.6 11.1 3.3
West Virginia 9.3 9.7 8.7
Wisconsin 10.2 11.9 8.1
Wyoming 7.6 5.4 1.7





Source: http://www.ctj.org/itep/whopays.htm


WSAW-TV 1114 Grand Ave. Wausau, WI 54403
Gray Television, Inc. - Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 176736 - wsaw.com/a?a=176736