Tuesday, November 30, 2021

News You Can Use

Paul Caron, Dean of the Law School at Pepperdine University, authors the TaxProfBlog which runs some interesting stuff. Today he has a chart by Dan Mitchell categorizing the 50 states (plus the District of Columbia) into five categories, based on whether they tax personal income and, if so, how it is done. 

Mitchell’s five categories are No Income Tax, Flat Tax, Low-Rate Graduated Tax (<5%), Graduated Tax (5-8%), and Class Warfare Graduated Tax (>8%). The percentages represent the state’s top rate for the highest earners. The nine states in the No Tax group are AK, FL, NV, NH, SD, TN, TX, WA, and WY. 

NY is in the class warfare group, FL has no state income tax. Imagine how much money Trump saved when he moved from NY to FL. He likely saved more than all but a few earn before taxes.