Wednesday, September 29, 2010

Think Fed Taxes are High?

Here is a great report on the impact of the federal income tax increase on the States.

Saggio Management Group can assist in reducing your tax burden. Right now we are offering a $99 year-end tax checkup. Call us today.

States are Bleeding, Brace for High Taxes

Sep 28, 2010 3:47 PM EDT

We are a little more than three months away from what could be the largest tax hike in American history.

But as we all fret about the Bush tax cuts expiring, you should be aware: It's not just income taxes that are on the rise.

Facing record budget deficits, states are having to reach further into your pockets on everything from property taxes to sales taxes just to make ends meet.

After reaching new lows last year, tax revenue for states are back up--some because more people can afford to pay as the recession eases (albeit slightly) and also some states are just raising taxes.

The Wall Street Journal put it all together showing property taxes are up more than 3% and sales taxes are up 5% since last year.

While income taxes remain unchanged, it's still pretty high at nearly $76 billion.

But not all states are created equal; at least they don't all tax equally!

Taxes are up the most in states like New Mexico m which saw personal income taxes skyrocket nearly 99%. Kansas residents have seen a 30% increase and Delaware up nearly 18%.

But such taxes are down nearly 35% in Louisiana, more than 26% in North Dakota and more than 22% in Tennessee.

But for some states it's the sales tax that will hit you the hardest: especially if you live in Virginia, North Carolina or Arizona - which saw taxes up 37.5%, 35.5% and more than 27% respectively.

Shoppers in North Dakota, California and Minnesota will also be paying a lot more.

But your sales tax is down significantly if you live in Wyoming or Connecticut of all places--they're actually down nearly 30%.

Michigan, New Mexico and Nebraska also seeing major drops since 2009.

As much as I hate anytime Uncle Sam comes to me for my money - states are so far in the red, many have no dreams of reversing their troubles for years and years - especially states like California.

With unemployment still shockingly high and federal stimulus money starting to fade - state and local legislators may have no other choice.

No comments:

Post a Comment