Fed vs. State and Local Taxes

Nice report from the CTJ about the progressivity of federal taxes vs. the regressivity of state and local taxes. Tax rates in total are much less progressive than is commonly thought.

In some ways, this makes sense. The poor (it could be argued) use local and state services, education, public transportation, police and fire, more intensively than do the rich. Still, the bottom 20% are facing an average tax rate of 17.4% while the highest rate for the rich is just over 30%.


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