Thursday, April 28, 2005

State Tax Revenues

The Census Bureau released its report on 2004 state tax revenues, and TaxProf Blog has a summary. Link.
* State tax revenues increased 8.1% to $593 billion (up $44 billion from 2003)
* All 50 states increased their tax take
* The two biggest sources of state tax revenues:
o Sales taxes up 7.5% to $198 billion
o Individual income taxes up 8.5% to $197 billion
* The biggest tax increases:
o Documentary and stock transfer taxes up 26%
o Severance taxes up 18%
o Occupational and business license taxes up 16%
* Per capita taxes collected by states averaged $2,024
o Highest per capita taxes:
+ Hawaii: $3,048
+ Wyoming: $2,968
+ Connecticut: $2,937
+ Minnesota: $2,889
+ Delaware: $2,862
o Lowest per capita taxes:
+ Texas: $1,367
+ South Dakota: $1,378
+ Colorado: $1,533
+ New Hampshire: $1,543
+ Alabama: $1,549

Probably the single most interesting point is that all 50 states increased their tax revenues last year. A rising economy raises all states' tax takes. Another interesting point is that if you compare the color (red or blue) of the highest and lowest taxed states, the pattern clearly is that those who pay the highest state taxes vote to get the highest federal taxes as well.


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