Break Down By Taxation Vs Income Where It Is Best To Be Poor Or Rich [Interactive Map]
This is an interesting little study by WaletHub that compares the tax burden on the residents of different states.In this study they took into account, sales taxes and local taxes and calculated the percentage of a person’s income that is took between low, middle and top earners in a State. They quote that the national tax rate is 11.4% for low income families, 9.9 % for mid income families and 7.4 % for that top 1% we are always hearing about. This is the product of everyone paying the same percentage of living taxes and as you can see is a bit out of whack.
So which New England State came out best given all the parameters and #1 being the best ? New Hampshire topped the best places to be poor in NE at #6 in the country; Vermont came in at #10, Maine at #15 and MA #18. Across the country using this litmus test Washington State is the worst place to lack means. Interesting fact from the study is against the national average in Maine the richer people pay more not less in their tax percentage.
They remind us to bear in mind the map that the analysis does not focus on tax rates but rather on the share of a person’s income that he or she contributes toward various tax obligations. They say:
"For instance, tax rates may be lower in one state, but because of a comparatively higher cost of living, the actual tax burden may be higher for that state’s residents".
Here are the best places to be well off.