In one instance, Alaska is at the bottom of the barrel, and
that’s not a bad thing. A recent Tax Foundation special report says Alaska ranks last in tax
burdens out of all fifty states. Mary Donaldson has more.
On Thursday, Gerald Prante, the
senior economist for the Tax Foundation in Washington D.C.
released a report titled “State-Local Tax Burdens Dip As Income Growth Outpaces
Tax Growth”. In his report, Prante finds that Alaska ranks lowest in state tax burdens.
(Prante 4 :13s “…at 11.8 percent.”)
Prante says the calculations are
based on what taxes residents pays in each state, divided by the total income
for that state. He says his company is not trying to answer the question of how
much the state and local governments collect but rather wants to answer the
question of what percentage of taxpayer’s income they are paying in state and
local taxes, or burdens.
(Prante 1 :26s “…does not fall on Alaskans only.”)
For example, if a resident from Alaska spends money and it is taxed in Las
Vegas, the report adds it to the calculation of the overall tax
burden of Alaska
He says the national average for tax burdens
fell slightly from last year.
(Prante 2 :22s “…as fast as income.”)
He says income growth is outpacing
tax growth because governments aren’t collecting taxes as fast as incomes are
(Prante 3 :26s “…rise as fast as income.”)
Prante says calculating this annual
tax burden report allows state governments and the public to see which states’
residents are most burdened by state and local taxes.
The Tax Foundation is a nonpartisan,
nonprofit organization that monitors fiscal policy on the federal, state and
local levels and has been running since 1937.
I’m Mary Donaldson.
For a link to this report, click here .