Watchdog Arena: Fair is fair? Perception versus reality in tax fairness across the states
media mention“So what makes a certain tax regime fair or unfair? WalletHub recently surveyed some 1,050 people asking them their perception about tax fairness in their states–how much a given income bracket should pay–and then compared it to data from the Institute on Taxation and Economic Policy, a left-wing think tank in favor of higher taxes on higher incomes.
According to the analysis, Montana is the best match between the perception of fairness and the actual fairness as analyzed by ITEP. One of the most determining factors is the state’s low reliance on excise and sales tax, known to be highly regressive–lower-income households pay the same rate, meaning a higher percentage of their income goes toward paying the tax.”