Tuesday, September 2, 2008

State Tax vs.No State Tax

I found an article on MSN by Scott McCredie speaking on state taxes: There are several states that do not pay state tax such as Alaska,South Dakota,Texas,Washington and Wyoming. It would be nice to live in a state that did not assess income . New Hamphsire and Tennessee don't have to pay income tax on just dividends and interest.

We pay Uncle Sam the same no matter where we live, but property, gasoline, tobacco, sales and state income taxes are all over the map.
The differences can be extreme. An Alaskan keeps 7 cents more of every dollar than a Vermonter, once cities and the state have grabbed their shares.
Factor in federal taxes and the gap grows even wider. Those who earn more money generally pay a greater percentage of it in federal taxes, so states with a greater percentage of highly paid workers end up paying more.
The state in which residents pay the most in combined state, local and federal taxes, per capita, is Connecticut (38.3%), followed by New York (37.1%), New Jersey (35.6%) and Nevada (35.2%). Oklahoma residents pay the least (27.8%), followed by those in Alabama (28.0%) and Alaska (28.1%).
We're all paying more, though. The U.S. average for state and local taxes in 2007 was 11%, up from 10.8% in 2006. The average combined state, local and federal tab for 2007 was 32.7%, up from 32.3% in 2006 and 30.7% in 1980.

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