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Originally Posted by Rainger99
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The ITEP “Study” fails to paint the whole picture when it comes to comparing the percentage people of different income levels pay in different states. The study makes assumptions and it omits several factors.
For example, the study assumes that because Florida has no income tax that lower income residents pay a higher percentage of their income in taxes than higher income residents because the states without income tax rely on property and sales tax to make up the difference. That’s a big assumption. Here’s why.
The study fails to take into consideration the fact that Florida has no state income tax because it relies heavily on income derived from tourism, which benefits all Floridians.
The study also omits the numerous sales, gas and toll tax holidays Florida has to “give back” to its residents.
The study fails to add in the numerous taxes many states have to raise revenue, such as New Jersey’s exit tax or California’s business start up taxes.
It doesn’t compare the various sales tax rates on goods and services and how they affect the take home income of lower income households. For example, California has the highest sales tax rate in the nation at 7.25% where as Florida’s is 6.0%.
Without taking all factors into consideration, there is no way to really know which states have the most overall regressive taxes.
Therefore, I give this article an F.