Provides one of the nation's largest property tax homestead exemptions.
Regressive: narrowed income tax brackets, so more people pay the top rate.
Pro: offers an income tax reduction for federal income taxes paid.
Con: Taxes groceries.
- Provides one of the nation's largest property tax homestead exemptions. Regressive: narrowed income tax brackets, so more people pay the top rate. Pro: offers an income tax reduction for federal income taxes paid. Con: Taxes groceries.
- Florida no personal income tax and so relies mostly on sales taxes, which contributes the increased burden on the poor. Pro: Sale tax excludes groceries. Recently Florida lawmakers have, repealed intangible personal property tax,increased the cigarette tax, expanded property tax exemptions.
- Illinois does allow the EITC which eases the burden on the poor. Cons: A single rate income tax structureNon-refundable property tax credits. High state and local tax rates. Taxes on groceries at a rate of 1.25 percent. Recent actions: Increased alcohol taxes.
- Allows the EITC and provides a property tax credit to low income and elderly taxpayers. It also has tax exemption index to inflation -- all progressive features. It's single rate structure, however, takes a larger proportion from the least wealthy. Recently Michigan has raised cigarette taxes, changed the business tax, and temporarily increased the income tax rate.
- Nevada has no state personal income tax and so is heavily dependent on sales and excise taxes. Nevada also has a business payroll tax instead of a corporate profits tax. Recently the state has raised sales and payroll taxes higher temporarily and has increased room occupancy taxes.
- To aid low income Pennsylvanians, the state provides a non-refundable tax forgiveness credit. It has a single rate structure and the method of reporting corporate income tax is regressive. In search of tax revenues, Pennsylvania has increased cigarette taxes and business taxes.
- Another state without a broad-based personal income tax, South Dakota, does provide a refund for low income tax payers to offset the sales tax on groceries. Cons: it does tax groceries and has neither a personal income tax or a corporate income tax. Recently South Dakota had increased cigarette taxes.
- Tennessee has no broad based personal income tax, but it does tax interest and dividend income. It relies heavily on sales taxes which include groceries. Recently it has reduced the tax rate for groceries and increased cigarette taxes.
- Texas also has no personal income tax and relies heavily on sales and excise taxes, although its sales taxes exclude groceries. There is not property tax credit for non-elderly taxpayers, which makes it more regressive. Recently, Texas has enacted a "margins tax," culled from business grosses designed to replace lost revenue from school property taxes. It has also increased cigarette taxes.
- Washington state has no personal income tax and relies heavily on sales taxes. It has provided a refundable earned income tax credit for low income taxpayers. Its combined local and state tax rate is high. Recently it has increased cigarette taxes.
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