July 25, 2011
The Atlantic Discusses Tax Foundation State-Local Tax Burden Report
"The 5 States Where Americans Pay the Most (and Least) in Taxes"
Maybe it's a West Cost-East Cost thing. State taxes in the northeast corridor are the highest in the country, while Nevada and Alaska make do with much less revenue as a share of income.
The laboratories of democracy haven't settled on an ideal level of taxation. In some states, like New Jersey, residents fork over 12.2 percent of their income. In others, like Alaska, they pay as little as 6.3 percent. Some employ a statewide sales tax, while others tax property.
The Tax Foundation report, "State-Local Tax Burdens Fall in 2009 as Tax Revenues Shrink Faster than Income," shows the extent of these differences. The single most important reason for the variation is that some states generate a significant amount of their tax revenue from businesses and out-of-state residents, thereby minimizing the burden of taxes borne by residents. Alaska, for example, gets 80 percent of tax receipts from oil companies.