In 41 states, the poor pay a higher share in taxes than the top 1%
Newsy
In many states that don't have a broad-based income tax, the poor are asked to carry a much larger burden than the wealthy.
A new analysis from the Institute of Taxation and Economic Policy shows that the top 1% of income earners in 41 states pay lower state and local tax rates than everyone else.
The analysis sorts taxpayers into seven income groups and found that most states had regressive tax policies, meaning poorer residents have a larger tax burden as a share of their income.
According to the analysis, the bottom 20% of taxpayers nationwide pay 60% more of their income in state and local taxes than the top 1% of households. The group says that the lowest 20% pay about 11.3% of their income in state and local taxes, compared to 7.2% for the top 1%. Those in the middle 20% pay about 10.5%.
The analysis indicates that Florida has the most regressive tax structure in the U.S. The analysis finds that the top 1% pay about 2.7% of their income toward state and local taxes. The lowest 20% of income earners pay about 13.2%.
The Institute of Taxation and Economic Policy says that Florida's large structure is largely driven by the absence of refundable credits; a high reliance on sales, excise and property taxes; and no broad-based income tax.
