Tax Foundation Report Reveals Best States To Live for Lowest Tax Burdens
With a Joe Biden presidency in the offing, unless the Kraken or the Almighty intervenes (or both), it is helpful to know what are America’s most tax-friendly states.
The nonpartisan Tax Foundation has ranked ordered states based on individual income taxes.
“States with a perfect score on the individual income tax component (Alaska, Florida, South Dakota, and Wyoming) have no individual income tax and no payroll taxes besides the unemployment insurance tax,” the Foundation reported.
Comparing state tax codes: individual income taxes https://t.co/fGb9h5Hhgx pic.twitter.com/YSsOiIEoMd
— Tax Foundation (@TaxFoundation) November 23, 2020
“States that score well on the Index’s individual income tax component usually have a flat, low-rate income tax with few deductions and exemptions,” the group added.
Some in the next highest tier below the perfect score include Nevada, Texas, Washington, Tennessee and New Hampshire.
States that score poorly in the index “tend to have high tax rates and very progressive bracket structures.”
The poorest rated states were New Jersey, California, New York, Hawaii and Minnesota.
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The Tax Foundation has created an interactive map to examine where states rank in terms of taxes overall, as well as their corporate taxes, individual taxes, sales taxes, and property taxes.
Rapper 50 Cent proclaimed last month that he would be voting to re-elect President Donald Trump, citing the high tax rates that former Vice President Joe Biden seeks to impose.
He later backpedaled after receiving some blowback.
50 Cent’s original endorsement of Trump had come after learning he would be paying a combined 62 percent marginal personal income tax rate as a New York resident under the proposed Biden tax plan.
Trump made four very un-Barack Obama-like moves upon taking office in January 2017: He cut government regulations on businesses more than any president in U.S. history; he signed tax cuts for businesses and individuals into law; he promoted domestic energy production; and he negotiated new pro-American trade deals.
The results speak for themselves.
The Obama administration oversaw the slowest economic recovery since World War II, CNN reported.
The GDP grew at 1.7 percent during Obama’s final year in office in 2016. During Trump’s first year in office, the rate was 2.3 percent and up to 3 percent in 2018.
Meanwhile, the unemployment rate dropped to 3.5 percent, a 50-year low, prior to the COVID pandemic.
The day after Trump’s election in 2016, the Dow Jones Industrial Average spiked over 250 points, closing at a record high of 18,589.
On Tuesday, the market closed at a record 30,046.
“The Stock Market Dow Jones Industrial Average just hit 30,000, which is the highest in history.” –@realDonaldTrump pic.twitter.com/aNOOOyKtuL
— GOP (@GOP) November 24, 2020
“We’ve never broken 30,000 and that’s despite everything that’s taken place with the pandemic,” Trump said in response.
Here’s hoping the Republicans keep the Senate and block any attempt to repeal the Trump tax cuts.
At the same time, the low tax states offer people even more freedom to live the American dream.
