NATION'S STATE-LOCAL TAX BURDEN AT RECORD HIGH
April 6, 2007
In a year when the nationwide burden of state-local taxes hit an all-time high of 11 percent of income, Vermont's taxpayers are bearing the heaviest load in 2007, according to the annual study of state and local taxes by the Tax Foundation.
- With 14.1 percent of income going to pay all state and local taxes, Vermont ekes out Maine (14.0) and New York (13.8) to take the top spot.
- Falling significantly behind the leaders were Rhode Island and Ohio; Hawaii rounded out the top six as the rainbow state continues to fall in the rankings.
- Not much has changed at the bottom where Alaska has retained the lowest tax burden every year this decade; New Hampshire, Tennessee, Delaware and Alabama complete the list of the five lowest tax burdens -- no changes from last year.
Since 2000, five states have experienced double-digit drops in their tax burden rankings:
- New Mexico has dropped 29 places, Idaho 23 places and Utah 19 places; Georgia and North Dakota have dropped 15 and 10 places, respectively.
- New Jersey has seen the highest increase since 2000, jumping from 24th place to 10th place; Arkansas and Indiana have both risen 10 places.
The previous high for state and local tax burdens occurred in 2005 at 10.9 percent.
Source: Curtis S. Dubay, "State and Local Tax Burdens Hit 25-Year High," Special Report No. 153, Tax Foundation, April 6, 2007.
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