New York has the most onerous tax in the country: studying


New York levies the highest taxes on its residents of all 50 states in the country, according to a new study.

WalletHub compared the 50 states for their property taxes, individual income taxes, and sales and use taxes to calculate their “total tax burden,” or the portion of total personal income that residents pay for state and local taxes.

Accordingly The results from WalletHubhere are the 10 states with the highest overall tax burden:

Gov. Kathy Hochul presents her budget on February 1, 2023 at the State Capitol in Albany, New York. (AP Photo/Hans Pennink)

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  1. New York at 12.47% (property tax rate of 4.36%, income tax rate of 4.72%, sales and use tax rate of 3.39%)
  2. Hawaii at 12.31% (property tax rate of 2.74%, income tax rate of 2.86%, sales and use tax rate of 6.71%)
  3. Maine at 11.14% (property tax rate of 5.33%, income tax rate of 2.52%, sales and use tax rate of 3.29%)
  4. Vermont at 10.28% (property tax rate of 4.98%, income tax rate of 2.07%, sales and use tax rate of 3.23%)
  5. Connecticut at 9.83% (property tax rate of 4.24%, income tax rate of 2.92%, sales and use tax rate of 2.67%)
  6. New Jersey at 9.76% (property tax rate of 4.88%, income tax rate of 2.36%, sales and use tax rate of 2.52%)
  7. Maryland at 9.44% (property tax rate of 2.66%, income tax rate of 4.21%, sales and use tax rate of 2.57%)
  8. Minnesota at 9.41% (property tax rate of 2.89%, income tax rate of 3.11%, sales and use tax rate of 3.41%)
  9. Illinois at 9.38% (property tax rate of 3.66%, income tax rate of 2.27%, sales and use tax rate of 3.45%)
  10. Iowa at 9.15% (property tax rate of 3.4%, income tax rate of 2.41%, sales and use tax rate of 3.34%)
Florida Gov. Ron DeSantis addresses voters March 10, 2023 in Des Moines, Iowa.

Florida Gov. Ron DeSantis addresses voters March 10, 2023 in Des Moines, Iowa. (Scott Olson/Getty Images)

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And here are the 10 states with the lowest overall tax burdens:

  1. Oklahoma at 7.12% (property tax rate of 1.76%, income tax rate of 1.69%, sales and use tax rate of 3.67%)
  2. Missouri at 7.11% (property tax rate of 2.16%, income tax rate of 1.99%, sales and use tax rate of 2.96%)
  3. Montana at 6.93% (property tax rate of 3.40%, income tax rate of 2.32%, sales and use tax rate of 1.21%)
  4. South Dakota at 6.69% (property tax rate of 2.69%, income tax rate of 0.00%, sales and use tax rate of 4%)
  5. Wyoming at 6.42% (property tax charge of 3.47%, income tax charge of 0.00%, sales and use tax charge of 2.95%)
  6. Florida at 6.33% (property tax rate of 2.75%, income tax rate of 0.00%, sales and use tax rate of 3.58%)
  7. Tennessee at 6.22% (property tax rate of 1.66%, income tax rate of 0.02%, sales and use tax rate of 4.54%)
  8. New Hampshire at 6.14% (property tax rate of 4.94%, income tax rate of 0.13%, sales and use tax rate of 1.07%)
  9. Delaware at 6.12% (property tax charge of 1.88%, income tax charge of 3.15%, sales and use tax charge of 1.09%)
  10. Alaska at 5.06% (property tax charge of 3.59%, income tax charge of 0.00%, sales and use tax charge of 1.47%)
A 1040 income tax form and W-2 pay slip with a federal treasury refund check.

A 1040 income tax form and W-2 pay slip with a federal treasury refund check. (iStock)

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Overall, the Democrat-led blue states finished with an average rank of 19.68 on the list of 50 states, compared to 31.32 for the Republican-led red states, indicating the former had significantly higher tax burdens. States were designated as red or blue depending on the election result in the 2020 presidential election.

WalletHub’s report comes three weeks ahead of Tax Day on April 18, when Americans are due to file income tax returns with the federal government.

Aside from the additional financial burden on individuals and families that government taxes represent, they also raise questions about how these government taxes affect the economic growth of residents.

“Many people disagree about the relationship between government tax burdens and economic growth,” Jordan Barry, a professor of law and tax at the University of Southern California, told WalletHub. “There are good arguments why a higher tax burden, other things being equal, reduces economic growth. On the other hand, there are also strong arguments that certain types of public investment – such as in education, transport and infrastructure – can boost economic growth, and taxes allow governments to make these investments. At the end of the day, the answer likely depends not only on how much a state taxes, but also on how those taxes are structured and what the state spends its money on.”

Gov. Kathy Hochul debates in the gubernatorial race at WNBC4-TV's studios on June 16, 2022 in New York City.

Gov. Kathy Hochul debates in the gubernatorial race at WNBC4-TV’s studios on June 16, 2022 in New York City. (Craig Ruttle-Pool/Getty Images)

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However, some experts argue that higher taxes stunt economic growth.

“The lower state tax burden will boost the state economy,” Joseph Krupka, the accounting program coordinator at Florida State University in Panama City, told WalletHub. “Companies look to government tax incentives as they develop long-term strategies for where to locate new facilities, such as plants and offices. Reduced corporate and property tax burdens, along with a favorable personal income tax for their employees, are the two keys.”

That may explain why a striking number of people are leaving high-tax countries.

The 10 highest-tax states lost nearly 1 in 100 residents to net internal migration between July 2021 and July 2022, while the 10 lowest-tax states gain nearly 1 in 100 residents. according to a recent analysis by James Doti, President Emeritus and economics professor at Chapman University.

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Some experts warn that such an exodus could negatively affect the economic growth of the states people are leaving.

“As we have seen, there is a demonstrative trade-off between government tax burdens and economic growth,” James Mohs, professor of accounting and tax at the University of New Haven, told WalletHub. “Higher tax rates lead to relocations. Both individuals and companies tend to leave high tax jurisdictions. The rate of displacement appears to be directly correlated to tax rates and the impact of costly infrastructure. Infrastructure costs can often be indirect taxes and fees Capital leaves states and services are not reclaimed, tax and fee increases negatively impact economic growth.”



Source : www.foxnews.com

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