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Offline Rapunzel

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The 10 Absolute Worst States for Taxes
« on: January 31, 2014, 10:28:30 PM »
http://www.theblaze.com/stories/2014/01/30/the-10-absolute-worst-states-for-taxes/

The 10 Absolute Worst States for Taxes
Jan. 30, 2014 11:17pm Jason Howerton   

As you prepare to file your taxes this year, perhaps you can take joy in knowing you don’t live in one of the 10 worst states for taxes. For those that do live in one of these 10 states, tough luck.

The list comes from information compiled by the Fiscal Times. We start at the very worst state for taxes:

New York

    Top State Income Tax Rate: 8.82 percent
    Sales tax: 4 percent
    Property taxes per capita: $2,280

New Jersey

    Top State Income Tax Rate: 8.97 percent
    Sales tax: 7 percent
    Property taxes per capita: $2,819

California

    Top State Income Tax Rate: 13.3 percent
    Sales tax: 7.5 percent
    Property tax per capita: $1,450

Minnesota

    Top State Income Tax Rate: 7.85 percent
    Sales tax: 6.875 percent
    Property tax per capita: $1,412

Rhode Island

    Top State Income Tax Rate: 5.99 percent
    Sales tax: 7 percent
    Property tax per capita: $2,083

Vermont

    Top State Income Tax Rate: 8.95 percent
    Sales tax: 6 percent
    Property tax per capita: $2,166

North Carolina

    Top State Income Tax Rate: 7.75 percent
    Sales tax: 4.75 percent
    Property tax per capita: $902

Wisconsin

    Top State Income Tax Rate: 7.75 percent
    Sales tax rate: 5 percent
    Property tax per capita: $1,698

Connecticut

    Top State Income tax Rate: 6.7 percent
    Sales tax rate: 6.35 percent
    Property tax per capita: $2,522

Maryland

    Top state income tax rate: 5.75 percent
    Sales tax rate: 6 percent
    Per capita property tax: $1,467
“The time is now near at hand which must probably determine, whether Americans are to be, Freemen, or Slaves.” G Washington July 2, 1776

Offline Atomic Cow

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Re: The 10 Absolute Worst States for Taxes
« Reply #1 on: January 31, 2014, 10:29:46 PM »
Out of those 10, one red state (North Carolina) with the rest varying shades of blue.
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SPQR

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Re: The 10 Absolute Worst States for Taxes
« Reply #2 on: January 31, 2014, 11:06:11 PM »
These are all the taxes we pay:

Federal personal income tax 17%
(2011 est. - 18.2%)  Top 25% rate. It ranges from a credit up to well over 40%. Source
State & local income taxes 10.1%
(2009 - 10.6%)  State taxes range from under 6% to over 12%. Local taxes run from zero to 2.75%. Source,  source,  source,  2009 source
Sales tax 9.7%
(2009 - 10.3%)  Figure is the average rate. State sales taxes range up to 8% and local taxes run from zero to over 5%. Source,  source,  2008 source (broken link as of 2012),  2009 source
Social security & Medicaid 7.65%  Total rate is actually 15.3% since half is paid by the employer, but we're ignoring that to be kind and to avoid being accused of being too political. 
Federal corporate income tax share 3%  Based on corporate taxes being approximately 1/6 of personal taxes, and that they are paid by individuals in the final analysis.
Property tax 2.5%
(2007 - 2.7%)  Yearly average actual costs range from under $200 in Alaska to almost $1900 in New Jersey. Source
 Fuel/gasoline tax .5%
(2009 est. - .6%)  Approximately 23% of the 2005 gasoline price is for federal & state taxes. The federal excise tax is 18.4 cents per gallon. Per the CPI, about 6% of the average budget is for transportation. Estimated. 2010 estimate, $.45 per gallon average. Source
Other 6%+
(2009-2013 - 8%+)  Includes estate tax, fees, licenses, inflation losses, inheritance, deficit allowance, gift, and others too numerous to mention. Estimated.
 


Total tax percentage potentially paid by the above average US citizen, 2005 - 54.4%


Total tax percentage potentially paid by the above average US citizen, 2013 est. - 59.7%


 Note 1: the total tax paid is closer to 43%, since the figures above do not distinguish between taxes on gross and net income, nor do they adjust for tax planning and many other factors. Note also that the Tax Foundation's numbers are closer to 30% for the actual "average" US citizen.

 Note 2: Inflation effects are likely quite understated - if actual inflation is 6% and one is only earning 4%. the tax rate is not the main issue.

 Note 3: A major factor that intentionally isn't covered (for political reasons) is a fuller picture of medical care and taxes. Most of health care is paid by the employer as of 2011 and results in a higher tax rate overall - we estimate it as at least 5%.

 Note 4: This page is not intended to be definitive and completely accurate on tax rates and issues - to do so would be virtually impossible considering all the factors. Its primarily intended to show a fuller picture than is normally presented.


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A partial list of the various ways in which citizens of the US are taxed:
•Accounts Receivable Tax
•Building Permit Tax
•Capital Gains Tax
•CDL license Tax
•Cigarette Tax
•Corporate Income Tax
•Court Fines (indirect taxes)
•Deficit spending
•Dog License Tax
•Federal Income Tax
•Federal Unemployment Tax (FUTA)
•Fishing License Tax
•Food License Tax
•Fuel permit tax
•Gasoline Tax
•Hunting License Tax
•Inflation
•Inheritance Tax Interest expense (tax on the money)
•Inventory tax IRS Interest Charges (tax on top of tax)
•IRS Penalties (tax on top of tax)
•Liquor Tax
•Local Income Tax
•Luxury Taxes
•Marriage License Tax
•Medicare Tax
•Property Tax
•Real Estate Tax
•Septic Permit Tax
•Service Charge Taxes
•Social Security Tax
•Road Usage Taxes (Truckers)
•Sales Taxes
•Recreational Vehicle Tax
•Road Toll Booth Taxes
•School Tax
•State Income Tax
•State Unemployment Tax (SUTA)
•Telephone federal excise tax
•Telephone federal universal service fee tax
•Telephone federal, state and local surcharge taxes
•Telephone minimum usage surcharge tax
•Telephone recurring and non-recurring charges tax
•Telephone state and local tax
•Telephone usage charge tax
•Toll Bridge Taxes
•Toll Tunnel Taxes
•Traffic Fines (indirect taxation)
•Trailer Registration Tax
•Utility Taxes
•Vehicle License Registration Tax
•Vehicle Sales Tax
•Watercraft Registration Tax
•Well Permit Tax
•Workers Compensation Tax

http://www.nowandfutures.com/taxes.html

This is how California Taxes Break Down:

California has been ranked as the third worst state for taxes by the Tax Foundation, a non-partisan tax research group in Washington, D.C.  California has the highest state level sales tax rate in the nation at 8.25% and has some of the highest income tax rates in the country.

Find out how these California state taxes will affect you whether you’re buying a home, shopping, or making money.

California Property Tax

Property in California is assessed at 100% of full cash value (a.k.a. fair market value).  Under Proposition 13, the maximum amount of tax on real estate is limited to 1% of the full cash value and cannot increase more than 2% over the previous year.  Under the homestead program, homeowners who live in their homes as their principal residence qualify for a $7,000 reduction in the taxable value of their property.


The Homeowner Assistance (HRA) program that provided property tax relief to the blind, disabled, or elderly has been discontinued.  State funding has been suspended for this program.

California Income Tax

California income tax rates range from 1.25% to 9.55% and are levied on California residents’ income and non-residents’ income from California sources.  The highest rate begins at $46,349 of income and those with incomes over $1 million have to pay an additional 1% tax surcharge (for a total tax of 10.55%).

Many of your federal deductions may be limited or disallowed in California, but many state tax credits are available including: an exemption credit for yourself and your dependents, a credit for renters, a credit for single parents or divorced parents, a credit for people who have a dependent parent, and several more.


More: Detailed information on California income tax

Other California Taxes


Sales Tax: 8.25% (food and prescription drugs exempt).  California allows cities and counties to charge additional sales taxes, and depending on the locality, rates can be as high as 10.50%


Gasoline Tax: 46.6 cents/gallon


Cigarette Tax: 87 cents/pack of 20

http://taxes.about.com/od/statetaxes/a/California-tax-profile.htm

« Last Edit: January 31, 2014, 11:20:52 PM by SPQR »

Offline Oceander

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Re: The 10 Absolute Worst States for Taxes
« Reply #3 on: January 31, 2014, 11:59:34 PM »
The NY sales tax figure is not accurate.  True, the State-only sales tax is 4%; however, every county also imposes a local sales tax and the combined state/local rate runs from a low of 7% in some counties, to a high of 8.875% in NYC.

In other words, the actual sales tax burden people in NYS pay is twice that shown in the chart.

Oh, and just to rub salt in the wound, unless you can prove that you paid use tax on everything you bought outside NY and brought into NY with you, you're presumed to (a) have purchased stuff outside NY that you then brought back in with you, and (b) to have not paid any use tax on that stuff, and you're assessed an additional use-tax proxy based on your income.
« Last Edit: February 01, 2014, 12:01:46 AM by Oceander »

Offline olde north church

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Re: The 10 Absolute Worst States for Taxes
« Reply #4 on: February 01, 2014, 07:33:08 AM »
tell me where the property tax in NJ is anywhere near 1900/annum
Why?  Well, because I'm a bastard, that's why.

Offline aligncare

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Re: The 10 Absolute Worst States for Taxes
« Reply #5 on: February 01, 2014, 07:59:24 AM »
Traffic fines particularly irk me. (in Queens, it's impossible not to get parking tickets. They will get you for the most miniscule things.) I hate them, I hate them, I hate them!
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Offline Oceander

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Re: The 10 Absolute Worst States for Taxes
« Reply #6 on: February 01, 2014, 09:46:58 AM »
tell me where the property tax in NJ is anywhere near 1900/annum

The figure is per capita, which in this case is likely to be misleading if NJ has more than the average number of renters, as opposed to owners, in its population.

Offline Oceander

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Re: The 10 Absolute Worst States for Taxes
« Reply #7 on: February 01, 2014, 09:48:54 AM »
Traffic fines particularly irk me. (in Queens, it's impossible not to get parking tickets. They will get you for the most miniscule things.) I hate them, I hate them, I hate them!

Those aren't parking tickets, that's the monthly open-air garage parking fee, dontcha know!  Do the ticket fairies come out even after the street sweeper's gone by?  Where I was they were pretty aggressive when it came to giving out tickets before the sweep came, but they wouldn't ticket cars with the driver inside and they never, to my knowledge, came by after the sweep had passed.

Offline olde north church

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Re: The 10 Absolute Worst States for Taxes
« Reply #8 on: February 01, 2014, 09:55:50 AM »
The figure is per capita, which in this case is likely to be misleading if NJ has more than the average number of renters, as opposed to owners, in its population.

i was crackin' wise
Why?  Well, because I'm a bastard, that's why.

Offline Lipstick on a Hillary

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Re: The 10 Absolute Worst States for Taxes
« Reply #9 on: February 01, 2014, 10:00:36 AM »
I had The View on TV on yesterday as I was getting ready to go out--all of I sudden I hear a "Bring your business to New York!"  ad.   Here NY's governor just declared that conservatives are no longer welcome in his state, but some state agency is paying for ads, begging businesses to start up or relocate there??   :shrug:


Offline Oceander

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Re: The 10 Absolute Worst States for Taxes
« Reply #10 on: February 01, 2014, 10:00:44 AM »
i was crackin' wise

I always take the bait when it's this early on the weekend!  :silly:

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Re: The 10 Absolute Worst States for Taxes
« Reply #11 on: February 02, 2014, 05:07:38 PM »
Out of those 10, one red state (North Carolina) with the rest varying shades of blue.
North Carolina is the state where all the blue-staters go to escape. Eventually the blue-state mentality would seep in.

The NY sales tax figure is not accurate.  True, the State-only sales tax is 4%; however, every county also imposes a local sales tax and the combined state/local rate runs from a low of 7% in some counties, to a high of 8.875% in NYC.

In other words, the actual sales tax burden people in NYS pay is twice that shown in the chart.

Oh, and just to rub salt in the wound, unless you can prove that you paid use tax on everything you bought outside NY and brought into NY with you, you're presumed to (a) have purchased stuff outside NY that you then brought back in with you, and (b) to have not paid any use tax on that stuff, and you're assessed an additional use-tax proxy based on your income.
Indeed. The default state tax rate in New York is 7%. In New York, the counties are pretty much administrative wards of the state and can be forced to fork over money for pensions, Medicaid, etc. whenever the state has a shortfall-- while this automatic "county" tax doesn't necessarily automatically go to state expenses (some use property taxes for that purpose), the net effect is the same. It's a state tax.

Property tax rates are absurd. As I've discussed before, much of that is education spending, which is also the highest in the nation. It is demonstrably driving people out of the state.
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