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Tag: Institute on Taxation and Economic Policy

March
22nd

Washington becoming low-tax state? One new report ranks state at No. 28 for tax burden, another puts it down at 36th

The Washington, D.C.-based Tax Foundation put out its new report on state and local taxes this week and it shows Washington is a below-average state for taxes. The Evergreen State landed No. 28 out of 50 states for high taxes, which means 22 states were lower and 27 were higher when state and local government taxes were compared to total incomes.

The national report pegged Washington’s state-local tax burden at about 9.3 percent of incomes in 2010.

Washington ranked even lower in a January report from the state Department of Revenue – linked here

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Jan.
30th

Report: Washington still has least-fair tax system in country; hits the poor six times harder than the wealthy

The beauty of a tax system is always in the eye of a beholder, and some business rankings say Washington state’s business climate is good partly because of its lack of an income tax. But a report by the nonpartisan Institute on Taxation and Economic Policy rates Washington state’s system as the worst in the country in terms of how much harder it hits the poor and middle-class than the rich. Lack of an income tax is a clear factor.

ITEP, based in Washington, D.C., found that all states’ tax systems are actually weighted in favor of the wealthy. In other words, those well off pay a smaller share of income in state and local taxes than do the poor. But Washington was at the top of what ITEP calls the “Terrible Ten.”

“In these ‘Terrible Ten’ states, the bottom 20 percent pay up to six times as much of their income in taxes as their wealthy counterparts. Washington State is the most regressive, followed by Florida, South Dakota, Illinois, Texas, Tennessee, Arizona, Pennsylvania, Indiana, and Alabama,” the report’s executive summary states.

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