What's the Matter with Washington State?

[hfojvt]

48. I looked at all 50 states plus DC

For the poorest 20% ...

15 states have an average income tax that is negative
11 states have an average income tax rate of less than .5%
10 states have an average income tax rate of less tnan 1%
5 states have an average income tax rate of more than 1%
2 states have an average income tax rate of more than 2%

7 states have a flat income tax - Utah, Colorado, Illinois, Indiana, Michigan, Pennsylvania, and Massachusetts

even some very blue states in that group.

State income taxes are not progressive enough for my taste, but they are still far, far more progressive than any alternative method of state and local funding - fees, penalties, sales taxes, or property taxes.

Among the states (and DC) income taxes accounted for ...

less than 5% of total revenue for 7 states (the ones without income taxes)
less than 10% of revenue for 1 state
less than 15% of revenue for 7 states
less than 20% of revenue for 17 states
more than 20% of revenue for 19 states

or, more than 15% of total revenue for 36 states comes from state income taxes.

Without that decent chunk of funding, states would have to rely more on sales taxes or property taxes, which would be much less progressive.

The bottom 40% in Washington would be better off if the sales tax was cut by 2% and that funding was gotten by a state income tax.

Or, since sales taxes are partly paid by tourists - keep the sales tax the same and provide a $100 refundable credit for sales taxes on the state income tax (which would refund 2% of your fist $5,000 in spending). Then you would still be collecting the 2% from the people who can afford to vacation in Washington from other states or countries.