CBS: Are local taxes unfair to the poor?
media mention“When it comes to state taxes, the rule of thumb is often topsy-turvy: The less you earn, the more you pay.
That’s the conclusion from a new analysis of local taxes from the nonprofit Institute on Taxation and Economic Policy (ITEP), a nonpartisan research firm that studies tax issues.
The organization’s findings won’t do much to make middle- and low-income workers feel good about their state and local tax burdens. The poorest 20 percent of Americans pay an average effective state and local tax rate of 10.9 percent. By comparison, the top 1 percent of Americans have an effective local tax burden of 5.4 percent.”
When it comes to state taxes, the rule of thumb is often topsy-turvy: The less you earn, the more you pay.
That’s the conclusion from a new analysis of local taxes from the nonprofit Institute on Taxation and Economic Policy (ITEP), a nonpartisan research firm that studies tax issues.
The organization’s findings won’t do much to make middle- and low-income workers feel good about their state and local tax burdens. The poorest 20 percent of Americans pay an average effective state and local tax rate of 10.9 percent. By comparison, the top 1 percent of Americans have an effective local tax burden of 5.4 percent