In this visualization, we show Pew Research’s findings on what bothers Americans the most about the tax system.

This data was collected after surveying more than 5,000 American adults between the period of March 27-April 2, 2023.

The survey was weighted to be representative of the U.S. adult population. Visit Pew Research’s methodology page for more details.

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Tax Burden of Every U.S. State

This map graphic visualizes the total tax burden in each U.S. state as of March 2024, based on figures compiled by WalletHub.

It’s important to understand that under this methodology, the tax burden measures the percent of an average person’s income that is paid towards state and local taxes. It considers property taxes, income taxes, and sales & excise tax.

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106 sats \ 8 replies \ @Undisciplined 8 May

Florida and Tennessee are looking pretty nice.

79 sats \ 7 replies \ @0xbitcoiner OP 8 May

As a European, I find the income tax rates in all US states pretty nice. Here in Europe, the rates are typically between 40% and 50%. The system here is quite different, perhaps more comparable to the Canadian system, but even so, our rates are very high. In my opinion, it is one of the most unfair taxes.

112 sats \ 4 replies \ @kepford 8 May

These stats are also deceptive sometimes. They are good for doing broad comparisons but if one is considering relocating for example, you'd want to make comparisons for your specific situation.

Texas for example has very high property tax rates. But, their property prices are much lower in many places than somewhere like California. That said, big states like Texas and California also have large differences within them when it comes to cost of living.

Then you need to consider the progressive tax rate vs. actual real tax rate. Then there are fees for things like licenses, permits, etc. I was surprised to find that some states that people think would be lower on the tax burden front are actually equal for someone in my situation. I always advice people to do their own research. I know several people that relocated based on reports like this only to find they weren't saving much money at all.

21 sats \ 2 replies \ @Bell_curve 8 May

Property taxes in Texas are 5 percent or less depending on your county

California taxes are too high. Also capital gains are taxed as income. No distinction between short and long term capital gains in California.

The high tax states also have the largest deficits and debt. They also have many government employees, almost all unionized and very generous pensions and medical care.

31 sats \ 1 reply \ @kepford 8 May

Weird how those line up isn't it?

0 sats \ 0 replies \ @Bell_curve 8 May

🙃

66 sats \ 0 replies \ @Undisciplined 8 May

Exactly.

I like that they average out total tax burden in this way, but there are other ways to look at it, too. For one thing, you don't earn as much in some of these places, which makes taxes as a share of income misleading.

A different useful metric would be something like after-tax cost-of-living-adjusted income. That has its own problems too, of course.

139 sats \ 1 reply \ @Undisciplined 8 May

For reference, those are just the state and local taxes. You have to add about 30% for federal taxes, to get a sense of actual tax burdens.

21 sats \ 0 replies \ @0xbitcoiner OP 8 May

Ah, I see! I misunderstood that. Thanks for clarifying.

74 sats \ 2 replies \ @kepford 8 May

The thing that sticks out to me here is the use of the word "fair". I'd love to see a survey of people that asks them what fair is in their opinion. My guess is that the tax rates are probably higher that what they think is fair.

Fair is easily one of my most hated words. It is pretty useless due to its subjectivity.

55 sats \ 1 reply \ @0xbitcoiner OP 8 May

You're absolutely right. I also think that 'fair' is quite subjective.

26 sats \ 0 replies \ @kepford 8 May

Yeah, that's what I mean. Fair basically means what I like.

27 sats \ 1 reply \ @kepford 8 May

Ironically in the majority of situations, except those where the government supports monopolies or requires people to buy services from corporations. Corps receive their revenues voluntarily where as the state uses force to extract our life force. Mind control is at work here.

Taxation is theft. Period. If any other entity behaved like the state we'd see it for what it is.
Profit resulting from voluntary exchange is not immoral or in need of theft to make it "fair". Its absurd.

But I'm just an old man yelling at the clouds.

0 sats \ 0 replies \ @Bell_curve 8 May

All taxation should be abolished except for property and consumption.

NH has no sales or income tax. They rely on excise and property taxes. It’s also the wealthiest state per capita

26 sats \ 0 replies \ @anniedustan 8 May

We pay between 20% and 45% in the UK (unless we fall under £12.5k a year)

26 sats \ 3 replies \ @HardRich 8 May

Between income tax, sales tax, property taxes, other misc taxes, and inflation I imagine the average US citizen probably pays at least 30% taxes. Add in indirect expenses like compliance costs (AML-KYC) and other regulations and maybe it's even higher.

If every tax payer had to pay all of that tax during tax season I imagine we'd have seen a revolt already. But, the US is an evil genius and they spread it around throughout the year and make it too confusing for most folks to notice. Heck, most folks are happy because they're "getting a refund."

10 sats \ 2 replies \ @hodlme 8 May

It drives me nuts when people talk about what they're going to do with their refund, like they're getting this big windfall of their own money. Really you should be paying the maximum that you can without getting an underpayment penalty, which is the larger of either $1000 or 10% of the total tax liability for the year.

Let the cash sit in a CD or saving account and at least minimize some loss to inflation rather than give a free ~6 month loan to the government.

0 sats \ 1 reply \ @HardRich 8 May

No kidding. Or, heck, maybe owe 100% and put the rest in something like Bitcoin that historically increases in value at a rate much higher then the underpayment penalty. Though, it'd be bad if it was a bull market.

0 sats \ 0 replies \ @hodlme 8 May freebie

You know, I can't find a "repeat underpayment penalty", though the IRS does have a "negligence or disregard of the rules or regulations penalty" so I think if you tried to pay 100% on tax day you may end up paying more than Bitcoin appreciates/holds purchasing power during the year. I agree Bitcoin is likely to be a better place to hold that 10% for the year.

There's a statement when you fill out a W-4 that amounts to "I affirm that this should net to roughly zero at tax day" and they'll likely point to that when you try to not pay incremental taxes.

10 sats \ 0 replies \ @nichro 8 May

looks at map cries in Canadian

What Frustrates Americans About The Tax System

Tax Burden of Every U.S. State