Posted on 05/29/2015 5:30:02 AM PDT by ro_dreaming
A team of researchers at the Federal Reserve are pointing fingers at more than a handful of states they say are actively undermining the government's attempts to curb income inequality.
According to a new paper, the federal tax code works to compress income inequality across the U.S., a problem that has been growing since 1980. The general idea is that high earners should be taxed at higher rates, allowing a good portion of that revenue to go into programs that help lower-income people.
In contrast, some states have instituted "regressive" tax policies that offset federal taxes and widen the growing gap between the haves and have-nots.
(Excerpt) Read more at chron.com ...
And, just to help out any who do not want to click through the silly slideshow:
Missouri - undermines the tax code at -5.1% Kentucky - -6.1% Pennslyvania - -8.5% South Carolina - -8.9% Indiana - -10.1% North Dakota - -10.2% Wyoming - -10.9% Arkansas - -11.8% Nevada - -12.0% Washington - -13.0% Texas - -14.8% Alabama - -16.2% Illinois - -16.8% Florida - -18.1% South Dakota - -20.8% Louisiana - -22.4% West Virginia - -31.6% Mississippi - -32.2% Tennessee - -32.7%
I presume that means the more I make in these states, the more of my own money the states let me keep since the federal government takes 'extra' away to give to the poor, right?
actually, the problem could be mitigated by low earners actually paying their fair share.
Income in equality can best be solved by work. More work, more pay
Looks like the conclusion is: If you have money, move to Tennessee
Yeah? How much is this "team of researchers" paid?
Not old fashioned.
You believe in the Constitution
I've been in E. Tenn. for 28 years
Love it here, weather is moderate,
no disasters, don't have to tolerate the big cities
I guess my wonderful state of New Jersey is #1 on the list to attempt to curb income equality since we have the lowest gas tax in the country. We are also the only state where you don’t have to pump your own gas. Those of you that don’t live here don’t know what you are missing. We really are great. Just ask Krispy Kreme.
Illinois made the list. I would not have expected that.
Yeah. If by "lower-income people" you mean "a team of researchers at The Federal Reserve".
That's the dirty little open secret.
Trillions of dollars flow into The Treasury supposedly to help the poor but actually go to pay for bloated bureaucracies.
With a little luck Maine may get rid of the income tax soon.
Glad to see Indiana on the list.
“These states are stealing from the poor”
Stealing would indicate ownership. The poor doesn’t own the money. It belongs to the over-taxed working people...or the Chinese/Arab Overlords it was borrowed from.
Maybe that’s the solution to growing parasitism in the country: visionary states should tax the POOR at higher rates, since it is they who are the greatest burdens on society. Those states should reward high producers with lower and lower tax rates. Ultimately, the leeches will be drawn to the high-tax welfare havens while the productive elements will gravitate to the enlightened states. Then let the bleeding hearts bear the costs of the deadbeats and mooches while the other states prosper.
Yesterday I tried calling 3 non profits in order to help an elderly physical therapy patient with the cost of building a ramp for her mobile home.
Non profit #1: “We provide grants but wont have any money until next year.” So I asked, “How are you paying the costs of your building and the salaries of your staff?” She hung up.
Non profit #2: “Call this number...”
Non profit #3: Someone quickly answered then put me on hold 5 minutes until the recording said,” bla bla bla leave your number and we will call you in 3-5 days.”
Non Profits are a joke...Like Government they function to serve those on the inside.
If by “old fashioned” you mean intelligent!
The rich don’t get their money from a magic tree, they get it from other people. Same as every one else does.
And that’s where they get the money to pay taxes.
“Progressive” tax rates just exacerbate inequality.
Seems to me, just looking at the lists, that income inequality is the GREATEST in the states that have the most progressive tax systems.
I mean, where is inequality greater than in California?
In other words, move to one of these states that haven’t totally given over to socialism, and stay away from the other leftist crap-holes...the end
How many poor people are going to benefit from the new football stadium in St. Louis which Missouri is on the hook for for somewhere between $250 million and $500 million, depending on who you ask?
They should be characterized as the “works and work-nots”.
I didn’t read the article but noticed WA State a little below Texas. While we don’t have a state income tax - yet (the Dims keep trying to implement one every few years) we have some of the highest taxes in the nation on property, gas, alcohol, and tobacco. The Gov (Jay Inslee (D) - former Rep) wants to increase the gas tax and Dims want to increase the B&O tax that businesses pay (even small businesses). I heard on the radio (not sure if it’s true or not) that the state will have an increase in revenue of $2-3B over the next couple of years w/o any tax increases, but that’s not enough for the Dems.
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