Thursday, January 8, 2015

STATE TAX RECEIPTS. THE GOOD. THE BAD. THE UGLY.

The other day in STATE TAX RECEIPTS LAG TRUE GDP. IS THE RECOVERY ON OR NOT?, I revealed to you how personal income, corporate income, sales and total taxes collected by all the states might have increased from after hitting a bottom. If so, this would support the advances in True GDP and True Loans and Leases as I showed in THE USA ECONOMY ADVANCE LIKELY HAS BEGUN AT LONG LAST.





Now, I show you how the various states stack up against each other. First, let's look at states by Individual Burden as measured by the sum of per capita True Income and True Sales taxes paid against those 18 and old in each state.

True Individual Tax Burden (per capita, 18+ in GW$)


The 21 worst states in which anyone could live are these:

  1. Connecticut
  2. Hawaii
  3. Minnesota
  4. California
  5. New York
  6. Massachusetts
  7. North Dakota
  8. New Jersey
  9. Nebraska
  10. Maryland
  11. Kansas
  12. Wisconsin
  13. Arkansas
  14. Maine
  15. Illinois
  16. Rhode Island
  17. Idaho
  18. Indiana
  19. Iowa
  20. Virginia
  21. Utah
The top 21 states' legislators tax their adult citizens so much of these states skew the average. The top 29 least taxing states' legislators with the lowest individual burdens fall below the average.

That Connecticut tops the list fails to surprise me. Only the other day, before running the numbers here, I came across this work by Annie LowreyWhat’s the Matter With Connecticut? 

Though Ms. Lowrey has it right that something is wrong in Connecticut, foolishly, she claims that Thomas Piketty's book has the answer. Of course, regular readers of Bizarro Theater know that born-again socialism revivalist preacher Piketty is quite wrong. For those who have yet to learn why the past creates the future rather than Piketty's expressed foolery — the past devours the future — read these:

When politicians take ever greater unearned shares of profits from individuals, individuals have less to spend. The 186 members of the Connecticut General Assembly are not smart enough to know how to spend better than those 2,821,247 adult Nutmeggers from whom they swiped.

Consequently, inefficiencies build up in the economy, with some goods being over-produced and other goods, under-produced. Worse, unearned buying power gets put into the hands of some who then push up prices than what would otherwise be gained by sellers. Overtime, such meddling leads to a wind-down of the economy as true profits become harder to gain both for firms and individuals.

Here are the top 15 Least Taxing States for imposing individual burdens.

  1. Alaska
  2. New Hampshire
  3. Montana
  4. Texas
  5. Florida
  6. South Dakota
  7. Alabama
  8. Tennessee
  9. Louisiana
  10. Nevada
  11. Arizona
  12. Wyoming
  13. Delaware
  14. South Carolina
  15. Georgia

And now, here is the map of True Personal Income Tax paid.

True Personal Income Tax Paid, 18+ in GW$


Not surprisingly, the list for highest personal income tax burdens appears quite alike to the list of individual tax burdens.

Here are the 21 worst states in which anyone could live:
  1. Connecticut
  2. New York
  3. Massachusetts
  4. California
  5. Minnesota
  6. Oregon
  7. Delaware
  8. New Jersey
  9. Virginia
  10. Maryland
  11. Illinois
  12. Hawaii
  13. Nebraska
  14. Wisconsin
  15. Utah

And here are the top 9 best states by least personal income tax:
  1. Alaska
  2. Florida
  3. Nevada
  4. South Dakota
  5. Texas
  6. Washington
  7. Wyoming
  8. Tennessee
  9. New Hampshire

Moving on, let's look at the True Sales Tax burden. Right, because if legislators don't get you one way, they get you another.

True Sales Tax Burden (per capita, 18+ in GW$)


Of the two, income tax or sales, I prefer sales tax. An income tax is an unearned share of profits for which legislators have not invested any capital either in firms or workers. Thus, an income tax is highly anti-capitalistic.

When a sales tax is borne by the buyer, it is up to the buyer to decide whether or not to pay the toll to legislators to enjoy goods bought from the fruits of work sold in purchases and sales of work for cash or credit. Such a tax is a wealth tax.

When a sales tax is borne by the seller, and in some states this is the method even though customers fail to know this and fall prey to the seller pushing the tax upon the buyer, such a tax also is anti-capitalistic, as it is a levy against capital.

For more on the kinds of taxes that exist in life, check out IF YOU DRIVE A CAR, I'LL TAX THE STREET. IF YOU TRY TO SIT, I'LL TAX YOUR SEAT. MR. WILSON. MR. HEATH. Also, you should read, ELITES SEEK TO PUNISH WORKERS WITH A CONSUMPTION TAX, OR A TAX ON WORKERS' WEALTH.

Here are the 20 worst states whose legislators levy the true highest sales taxes while also burdening the citizens with personal income taxes.
  1. Hawaii
  2. North Dakota
  3. Connecticut
  4. Mississippi
  5. Tennessee
  6. Indiana
  7. Arkansas
  8. Kansas
  9. New Mexico
  10. Minnesota
  11. New Jersey
  12. Nebraska
  13. California
  14. Idaho
  15. Maine
That Hawaiian legislators lead this list fails to surprise. When you are stuck on an island with most goods being imported over seas and you need those goods to live, you will do what you need to do to get those goods.

Here are the states whose legislators levy sales taxes but no personal income taxes.
  1. Washington
  2. Wyoming
  3. Nevada
  4. South Dakota
  5. Florida
  6. Texas
The legislators of Alaska neither levy sales tax nor personal income tax.

Now, let's see how states' legislators treat their fictional personhood friends. 

True Corporate Income Tax Paid, per firm in GW$


Straight away, I acknowledge that presenting these figures suffer a small flaw. The firm count as reported in the Statistics of U.S. Businesses by the Census Bureau, though the latest figures available, only runs through 2011. Nonetheless, it's fairly accurate.

Here are the states whose legislators treat firms the worst.
  1. Alaska
  2. New Hampshire
  3. Illinois
  4. Massachusetts
  5. North Dakota
  6. Delaware
  7. California
  8. New Jersey
  9. Tennessee
  10. Mississippi
  11. Minnesota
  12. Pennsylvania
  13. Connecticut
  14. New York
  15. Kentucky
  16. Wisconsin
  17. Maryland
  18. New Mexico
  19. Nebraska
Likely, the legislators of Alaska and North Dakota sock it to oil and nat gas drillers. 

And here are the states with the lowest corporate tax burden, falling in the top 25% lowest.
  1. Nevada
  2. Texas
  3. Washington
  4. Wyoming
  5. Ohio
  6. South Dakota
  7. Missouri
  8. Rhode Island
  9. Montana
  10. Michigan
  11. Florida
  12. Virginia
  13. Oklahoma
This last map reveals the True Corporate Income Tax to Individual Burden Ratio. To make the map, the states of Alaska and New Hampshire have been excluded.

The New Hampshire ratio is 24 times higher than the next closest state's legislators, Tennessee. Alaska is 10 times New Hampshire as Alaskans lack an individual burden of sales and personal income taxes.

True Corporate Income Tax Paid (per firm) to True Individual Tax Burden (per capita, 18+) in GW$


You can think of this map revealing a proxy for competitiveness among the states' legislatures.

Here are the states falling above the average whose legislators like tax corporate entities higher than citizens.
  1. Tennessee
  2. Delaware
  3. Illinois
  4. Mississippi
  5. Pennsylvania
  6. Massachusetts
  7. Kentucky
  8. New Jersey
  9. North Dakota
  10. Louisiana
  11. North Carolina
  12. Florida
  13. California
  14. Montana
  15. Alabama
  16. New Mexico
  17. West Virginia
  18. Wisconsin
  19. South Carolina
  20. Indiana
  21. Arizona
  22. Minnesota
  23. Maryland

And here are the states falling below the average.
  1. Nevada
  2. Texas
  3. Washington
  4. Wyoming
  5. Ohio
  6. South Dakota
  7. Hawaii
  8. Missouri
  9. Rhode Island
  10. Connecticut
  11. Maine
  12. Virginia
  13. Michigan
  14. Idaho
  15. Oklahoma
  16. Utah
  17. Oregon
  18. Iowa
  19. New York
  20. Nebraska
  21. Kansas
  22. Colorado
  23. Vermont
  24. Arkansas
  25. Georgia

True Total Taxes Paid, per capita in GW$


When accounting for other taxes such as licenses, here are the top states with the lowest total taxes levied per capita whose legislators beat the average.
  1. New Hampshire
  2. Florida
  3. Alabama
  4. Georgia
  5. Missouri
  6. Arizona
  7. South Carolina
  8. South Dakota
  9. Tennessee
  10. Texas
  11. Louisiana
  12. Colorado
  13. Virginia
  14. North Carolina
  15. Ohio
  16. Oregon
  17. Oklahoma
  18. Utah
  19. Idaho
  20. Kentucky
  21. Michigan
  22. Iowa
  23. Nevada
  24. Mississippi
  25. Montana
  26. Indiana
  27. Kansas
  28. Pennsylvania
  29. Washington
  30. Nebraska
  31. Rhode Island
  32. Maine
  33. New Mexico
  34. Wisconsin
  35. West Virginia
And overall, here are the worst states in which anyone could live.
  1. North Dakota
  2. Connecticut
  3. Vermont
  4. Minnesota
  5. Hawaii
  6. Wyoming
  7. Alaska
  8. New York
  9. California
  10. Massachusetts
  11. Delaware
  12. New Jersey
  13. Maryland
  14. Arkansas
  15. Illinois

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