The Guardian: Want to Live in a State with No Income Tax? Make Sure You’re Super Rich First
media mentionIt may sound like a dream to live in the seven US states that have no income taxes: every dollar that doesn’t go to the tax man stays in your bank account, right?
Not quite. Taxes reinforce inequality, as it turns out. States with no income tax end up taxing the poor far more heavily than other classes.
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The average state tax burden for the bottom 20% of the population is 11.1% – and the top 1% of earners shoulders a tax burden of only 5.6%. People with lower income levels actually pay the majority of state taxes, according to the Who Pays report from the Institute on Taxation and Economic Policy, or ITEP.