A new analysis by the international research think tank Tax Foundation shows which states in the nation collect the least and most taxes per capita as of fiscal year (FY) 2021, the most recent year for which full state-by-state data are available.
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New Internal Revenue Service (IRS) guidelines for the federal electric vehicle (EV) tax credit are a “recipe for fraud,” warns the head of the Tax Foundation.
Consumers will now be able to automatically claim the tax credit at the point of sale on new or used EV purchases, rather than wait to claim it on their tax return, according to the latest Treasury Department guidance.
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According to recent data from the center-right Tax Foundation, Connecticut taxpayers continue to shoulder nearly the highest revenue burdens of anyone in the U.S.
As stated in a report titled “State and Local Tax Burdens, Calendar Year 2022,” the average state resident paid 15.5 percent in combined state and local taxes last year. That places Connecticut in second among all states in that category, second only to New York which claims 15.9 percent of residents’ annual earnings on average. Neighboring Massachusetts and Rhode Island both have tax onuses under 12 percent, hovering around the national mean.
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While Democratic officials met news of Connecticut’s boosted credit rating effusively on Tuesday, Republicans drew attention to new survey results showing on-the-ground feelings about the economy overall aren’t so rosy.
Standard & Poor’s (S&P), a major New York City-based credit-rating agency, assigned the state’s general-obligation bonds a “positive” outlook; before the rating was merely “stable.” S&P attributed its upgrade to the state projecting it will accumulate a $3.31-billion fund balance in the next fiscal year, amounting to 15 percent of appropriations.
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A review of Connecticut’s salary records published by the center-right Yankee Institute (YI) Thursday indicated that 2,927 state employees received higher salaries than the governor in 2021.
State statute confers a $150,000 yearly salary on Gov. Ned Lamont (D). Approximately 2,000 state employees earned higher pay than him through 2017. Over the next three years, that number rose by nearly 1,000.
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As more Americans move to lower-taxed Republican-led states, a new report by the Tax Foundation indicates that taxation levels play a direct and indirect role as factors contributing to migration patterns.
Taxes often “play an indirect role by contributing to a broadly favorable economic environment. And sometimes, of course, they play little or no role,” Jared Walczak, a vice president at the Tax Foundation, writes in an analysis of 2021 U.S. Census Bureau data and inbound and outbound migration data published by U-Haul and United Van Lines.
“The Census data and these industry studies cannot tell us exactly why each person moved, but there is no denying a very strong correlation between low-tax, low-cost states and population growth,” he wrote. “With many states responding to robust revenues and heightened state competition by cutting taxes, moreover, these trends may only get larger.”
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