Gov. Tim Walz's plan to increase taxes would hit the lowest-income Minnesotans the hardest, according to a new state analysis that could frame his push for more money to fund new health, infrastructure and school initiatives. Minnesotans on the bottom half of the income ladder would absorb an average 9.9% tax increase, according to the analysis by Walz's own Department of Revenue. The upper half of Minnesotans would pay an additional 5.9%, although the wealthy would wind up paying far more in actual dollars and pick up a much larger share of the total tab than lower-income Minnesotans, according to the report. The overall state and local tax burden for Minnesotans would rise from 11.63% of income to 12.39%, or about 75 cents for every $100 earned, or $750 on $100,000 in income. The analysis added fresh fuel to an already raging debate over taxes and state government spending, with Republicans unveiling a new tax plan Wednesday that would cut taxes for many Minnesotans while eliminating … [Read more...] about Lowest-income Minnesotans hit hardest by Gov. Tim Walz’s tax plan, analysis shows
Lowest income tax states
Syracuse, N.Y. -- New Yorkers pay more in state and local individual income taxes per capita than anyone else in the nation.Residents of the Empire State paid $2,969 per capita in state and local individual income taxes in fiscal year 2016, the last year for which data is available, according to a new report by the Tax Foundation, a Washington, D.C.-based tax policy research organization. That puts New York at the top of the list. The other states in the top five were Maryland ($2,276), Massachusetts ($2,115), Connecticut ($2,106) and California ($2,055). The states with the lowest income tax collections per capita were Tennessee ($49), New Hampshire ($66), North Dakota ($465), Arizona ($574) and Mississippi ($603). (Tennessee and New Hampshire tax investment income but not wage income.)Seven states -- Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming -- do not levy an individual income tax.On average, state and local governments collected $1,164 per capita in … [Read more...] about We’re #1: New Yorkers pay highest state and local income taxes
The gubernatorial candidates' diverging views on flat versus progressive income taxes have generated rancor and insults but few details on what a fundamental shift in Illinois' system would mean. Republican Gov. Bruce Rauner wants to lower the state's 4.95 percent flat tax, and Democrat J.B. Pritzker seeks a graduated or progressive tax with different brackets based on earnings. "The vast majority of the people in the state of Illinois should get an income tax break," Pritzker said in a recent interview. "The wealthiest people in the state can afford to pay a little bit more."Rauner charges the plan will raise taxes for the middle class, which Pritzker disputes. "Nightmare for Illinois," Rauner told the Daily Herald. "We cannot raise taxes more to solve any of our problems."So what does a graduated income tax mean? Here's how it works in three nearby states.Ohio Ohio has used a progressive tax since 1973. People with taxable income up to $10,850 get a break in taxes; the rest of … [Read more...] about How would a graduated income tax work in Illinois? Here’s how three nearby states do it
Russ Wiles Arizona Republic Published 4:36 PM EDT Oct 2, 2018 Arizona has attracted a steady stream of company relocations and expansions this year despite a tax climate ranked as only 27th-best in the nation. The Tax Foundation, in a Sept. 26 report, placed Arizona slightly below average in its latest assessment of five key categories. Arizona enjoys favorable rankings in corporate and individual income taxes, in property taxes and in unemployment-insurance taxes. But it was pulled down by sales taxes, with generally high rates and a complex system. Arizona is among a group of states that impose high sales-tax rates and tax a range of goods and services including utilities, certain services, manufacturing and leases, the report said. Sales taxes in Arizona vary by city and county but average about 8.3 percent. Combined rates in larger cities here include 8.6 percent in Phoenix, 8.7 percent in Tucson, 8.05 percent in Mesa and 7.95 percent in … [Read more...] about Arizona taxes: State ranks near middle for businesses, individuals
Is it better to live in a state with no income tax? It’s a great question to ask, especially when considering how much of our paycheck is already set aside for Uncle Sam. Seven U.S. states forgo individual income taxes as of 2018: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. Residents of New Hampshire and Tennessee are also spared from handing over an extra chunk of their paycheck, though they do pay tax on dividends and income from investments. The main benefit of eliminating the individual income tax, proponents say, is that states with no income tax on residents become beacons for growth. They’re better at creating jobs and keeping a core of young, educated workers from moving to other states. The American Legislative Exchange Council reports that over the past decade the nine states without a personal income tax have consistently outperformed the nine states with the highest taxes on personal income in job creation, population growth and even … [Read more...] about Is a state with no income tax — like Washington — better or worse?