We tend to hear most of the rhetoric on taxes focus on federal taxes — and there certainly is good reason to do so. But, the underbelly of the system — and the way in which the poorest people are screwed — can also be seen at the state and local level.
Most significantly, the report concludes that all states have regressive tax systems that ask more from low- and middle-income families than from the wealthiest. It also finds:
- The average overall effective state and local tax rates by income group nationwide are 11.1 percent for the bottom 20 percent, 9.4 percent for the middle 20 percent and 5.6 percent for the top 1 percent
- Ten states with the most regressive tax systems are: Washington, Florida, South Dakota, Texas, Illinois, Tennessee, Arizona, Pennsylvania, Alabama and Indiana.
- States praised as “low tax” are often high tax states for low and middle income families.
The details are in the report but the above bottom line says it all.