Middle Class hardest hit for State taxes

I received an interesting report from the Washington, D.C. office of the Institute on Taxation and Economic Policy. In the 2009 edition of Who Pays? A Distributional Analysis of the Tax Systems in All 50 States, it was found that

  • One-fifth earn under $23,000 a year. They pay on average 9.2% of their income in state and local taxes.
  • One-fifth at the middle earn between $40,000 and $62,000 a year. They pay on average 10.3% of their income in Minnesota taxes.
  • The top one percent, with average incomes of $1,607,000, pay on average 7.7%.
  • This table taken from the report shows a breakdown of the state tax burden on each income level:
    MN Income Chart

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