Most states tax their middle- and low-income families far more heavily than the wealthy, according to a new study by the Institute on Taxation & Economic Policy.
Nationwide, the study found that middle- and low-income non-elderly families pay a much higher share of their income in state and local taxes than the wealthy. The average state and local tax rate on the wealthiest 1 percent of families is 6.4 percent before accounting for the savings from federal itemized deductions. After the federal offset, the effective tax rate on the wealthiest 1 percent is a mere 5.2 percent.
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