The Institute on Taxation and Economic Policy has created charts about who pays state taxes. They conclude that states that don’t have income taxes; that rely instead on consumption taxes place much greater relative demand on lower and middle income families than the place on the wealthy.
Just the headings are powerful. Take a look. Consider the link.
- State and local tax systems levy the highest effective tax rates on the lowest-income tax payers.
- Unlike every other income group, the top 5 percent of earners pay a smaller share of state and local taxes than their share of income.
- Regress state and local tax systems widen income inequality.
- Not levying a personal income tax benefits high-income households.
- States without personal income taxes are not necessarily “low tax” for everyone.
- Robust personal income taxes make tax systems less regressive.
- Flat taxes often require higher payments by low- and middle- income families.
- Sales taxes require low- and middle- income families to pay far more of their income in tax.
- Sales taxes often determine if a state is “low tax” or “high tax” for low-income and moderate-income families.
- Most middle-income and low-income taxpayers pay ore in sales and excise taxes than in income taxes.
- The most lopsided state and local tax codes include a flat income tax or no income tax at all.
12 States raising raising more of their revenue with sales and excise taxes tend to have more regressive tax systems.
Here is the link: https://itep.org/fairness-matters-a-chart-book-on-who-pays-state-and-local-taxes-2019/. Read the charts and weep.