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October 23rd, 2012 5:56 pm
Want to Keep More of Your Income? Move to a Red State
Posted by Print

In keeping with my recent focus on the fruits of federalism — the divergence between states based on public policy — I thought I’d pass along the Tax Foundation’s newest numbers on state and local tax burdens. Here are the 10 most confiscatory locales in the nation (as reported by CNS News), represented in terms of the tax burden as a percentage of state income:

  1. New York, 12.8 percent
  2. New Jersey, 12.4 percent
  3. Connecticut, 12.3 percent
  4. California, 11.2 percent
  5. Wisconsin, 11.1 percent
  6. Rhode Island, 10.9 percent
  7. Minnesota, 10.8 percent
  8. Massachusetts, 10.4 percent
  9. Maine, 10.3 percent
  10. . Pennsylvania, 10.2 percent

And here are the 10 lowest:

  1. Alaska, 7.0 percent
  2. South Dakota, 7.6 percent
  3. Tennessee, 7.7 percent
  4. Louisiana, 7.8 percent
  5. Wyoming, 7.8 percent
  6. Texas, 7.9 percent
  7. New Hampshire, 8.1 percent
  8. Alabama, 8.2 percent
  9. Nevada, 8.2 percent
  10. . South Carolina, 8.4 percent

Notice a trend? All of the top 10 high-tax states are consistently blue (Wisconsin and — less likely — Pennsylvania may be in play this year, but those are exceptions to the historical trend). Meanwhile, all of the top 10 low-tax states are reliably red, with the two exceptions of New Hampshire and Nevada, both of which are in play this year, but both of which, regardless of party affiliations, also boast very libertarian political cultures.

The upshot: if you want to increase your take-home pay, move to a red state.

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