In response to
"do you understand why a resident of New York or California might be more likely to pay more taxes in all 50 states than someone in N. Dakota or Idaho?"
by
moles
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It's an attempt to correct for states that have large leisure industries.
Posted by
spamlet
Feb 24 '11, 11:25
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Florida and Hawaii would have huge tax burdens per resident if you don't reallocate tax receipts back to the resident's state.
Plus, the vast majority of taxes you pay (sales, property, income) will be to your home state.
To your example, they calculate as a percentage of income. So, if they pay 35% of their income in taxes it's no different than me paying 35% of my income in taxes.
The fact is is that states like New York and New Jersey do have extremely high taxes (especially on property). It's not a bias if it's a fact.
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