November 5, 2009
Tax Analysts Interviews Tax Foundation Staff Economist Mark Robyn on Low-Income Tax Burden
"Poor Families Still Pay Income Taxes in Several States, CBPP Says"
By John Buhl
Working-poor families had tax bills as high as several hundred dollars in some of the states that continued levying income taxes on them in 2008, according to a new Center on Budget and Policy Priorities report. ...
However, Tax Foundation staff economist Mark Robyn said states generally do a good job of shielding low-income earners from taxes. States that do levy income taxes on low-income earners typically do not collect an exorbitant amount, he said, adding that the data in the study indicates that the issue is not substantial or widespread.
"They're really just saying that they want even more progressivity in the tax code," Robyn told Tax Analysts. Robyn said states could better promote progressivity by addressing tobacco taxes, adding that the CBPP has supported tobacco taxes in the past.
Robyn also said some policies mentioned in the study—such as earned income tax credits and no-tax floors—can increase marginal tax rates and create a disincentive for earning additional income.
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