Residents in blue states pay more taxes than those in red states, according to an analysis by the Washington, D.C.-based Tax Foundation.Its report, “State Individual Income Tax Rates and Brackets for 2019,” maps who pays the most and least in state individual income taxes, and provides an overview of each state’s tax brackets and reform measures.Individual income taxes are a major source of state government revenue, accounting for 37 percent of state tax collections, the foundation notes. Individuals are “actively responsible for filing their income taxes,” the report states, compared to other tax revenue that states receive through indirect payments of sales and excise taxes.According to data released from the Internal Revenue Service, in 2014, 139.6 million taxpayers reported earning $9.71 trillion in adjusted gross income and paid $1.37 trillion in individual income taxes.The top 50 percent of all taxpayers paid 97.3 percent of all individual income … [Read more...] about Tax Day: In response to federal tax reform, several states lowered individual income taxes
Minnesota income tax rates
PROVIDENCE – Rhode Island’s top tax marginal individual tax rate for 2019 is 5.99 percent, fourth highest in New England, according to the Tax Foundation Wednesday. The 5.99 percent Rhode Island tax rate applies to adjusted incomes greater than $145,600 for both single filers and joint-filing married couples. Rhode Island has three income tax rates depending on income. The highest top marginal tax rate in New England is in Vermont at 8.75 percent. The tax rate applies to single and joint-filing married earners that make $416,650 or more annually. Vermont has five tax-rate brackets in 2019. The second-highest top marginal tax rate in New England is in Maine at 7.15 percent, followed by Connecticut at 6.99 percent, Rhode Island at 5.99 percent and Massachusetts at 5.05 percent. New Hampshire only taxes interest and dividends income at a rate of 5 percent. Connecticut had the most tax brackets in the region at seven. Hawaii has 12 brackets, the most in the country. Nationally, … [Read more...] about Report: R.I.’s top marginal income tax rate fourth highest in N.E.
The new 2019 Tax Foundation report on state corporate income taxes ranks California as the 7th highest rate — 8.84%. It’s a tax rate that starts at $1 of profit — some other high corporate tax states have tiered rates that can provide some relief for the smaller corporations. But more important, when looking at California’s economic competitors — those states west of the Mississippi — California has THE highest corporate income tax rate (Alaska is not an economic competitor of California). Retailers have no choice — CA usually is too big a market to ignore. But non-retail companies generally are not keen on putting themselves on the Franchise Tax Board’s radar screen. Here’s the link to the full report, followed by the press release (including an excellent map) that the Tax Foundation just sent out (2/27/19): https://taxfoundation.org/state-corporate-rates-brackets-2019/ Corporate income taxes are levied in … [Read more...] about California has the highest state corporate income tax rate compared to its economic competitors
The Sun-Times’ Feb. 11 editorial, ”A moral argument for the rich in Illinois paying a fairer share“ gets one thing right: It’s morally imperative to protect the middle class. Unfortunately, a progressive income tax will do the exact opposite. Despite claims of “fairness,” states with progressive income tax rates have seen the gap between the rich and poor increase faster than states without one. The numbers don’t lie. A progressive tax will deliver middle-class tax hikes. SEND LETTERS TO: [email protected] Please include your neighborhood or hometown and a phone number for verification purposes. There is no possible way Illinois can pay down billions of dollars in debt, fund new promised programs and still cut taxes for 99 percent of taxpayers. Adopting rates from Minnesota, for example, would guarantee raising the typical family’s income taxes by $864, a 24.5 percent increase. The editorial admits the truth: a progressive … [Read more...] about A progressive income tax for Illinois is anything but “moral”
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