State and localities rely heavily on the individual income tax, which accounted for The individual income tax ranks just above the general sales tax Of all the states, Oregon and Maryland rely most heavily on individual income taxes, which account for Both are among the 17 states where localities also levy income taxes, though this does not factor into these rankings, which are of state reliance. While the individual income tax tends to be a major revenue source for state and local governments, some states rely on it very little, and some not at all.
Eight states Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming do not collect individual income taxes, while New Hampshire collects taxes on dividend and interest income but not wage income. Therefore, it comes as no surprise that Tennessee and New Hampshire raised the least amount of revenue from the individual income tax in among states with any such tax, at 1. In North Dakota and New Mexico, the next lowest states, the individual income tax generates 6.
It is generally true that income taxes are more volatile than consumption taxes in an economic downturn, as income itself tends to fluctuate more than consumption. Even in a global pandemic , when social distancing restrictions and the nature of pandemics caused an initial drop in consumption, sales taxes have rebounded and returned to pre-pandemic levels, while income taxes—which have also rebounded—are still seeing some losses.
Additional sources of state and local government revenue include intergovernmental transfers from the federal government, or from state to local governments, selective sales taxes, and direct charges for utilities, licenses, or entities such as higher education institutions and insurance trusts.
Since state and local governments derived approximately 45 percent of revenues from taxes, 18 percent of revenues from the federal government, and approximately 25 percent from service and utility charges. State and local governments collect tax revenues from three primary sources: income, sales, and property taxes.
Other studies show that productivity increases among some industries were dependent upon retaining remote employees and bringing in additional remote employees to address their demands. Thus, some higher-waged remote employees could benefit from the COVID-related restrictions by finding a higher-paying job or getting paid more in their current role.
April 1, Tracey Peake. View Comments 0 total responses. Leave a Response Cancel reply Your email address will not be published. Whether you have a simple or complex tax situation, we've got you covered. Feel confident doing your own taxes. Just answer simple questions about your life, and TurboTax Free Edition will take care of the rest.
For Simple Tax Returns Only. Where Tax Dollars are Spent. Earthquake Retrofitting Tax Breaks for Californians. What Are State Tax Forms? States with the Lowest Taxes and the Highest Taxes. Estimate your tax refund and where you stand Get started.
See if you qualify for a third stimulus check and how much you can expect Get started.
0コメント