State taxes are regressive (shocker)

One of the first, most general, things you learn upon taking a more comprehensive look at tax burdens in this country is that while overall (local,state,federal) our tax system is progressive, not every component of the system is progressive. Some are even regressive, meaning that the less income you have the higher tax rate as a percentage you pay. One such part? State taxes:

This comes from a report done by The Corporation for Enterprise Development. Looking here I see that in my state of Indiana the average percentage of income that the lowest 20 percent pays is 11.9%, versus 5.3% for the top 1%, a ratio of 2.2. Go ahead, look up your state for that part during the cocktail conversation when you want to start an argument.

h/t Kevin Drum


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