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Most States Have Tax Codes That Are Rigged To Benefit The Wealthy: Report
In many states, the tax code directly widens income inequality — and it’s a deliberate policy choice driven by low or nonexistent income taxes.
In the top 10 states with the most regressive systems — Florida, Washington, Tennessee, Pennsylvania, Nevada, South Dakota, Texas, Illinois, Arkansas and Louisiana — the middle 60% of families pay an average of twice as much of their income in taxes as the top 1%, and the poorest 20% of residents pay an average of three times as much as the very wealthiest.
Thirty-four states tax low-income households at a higher rate than every other group.
“The core problem is not that complicated,” Davis said. “The problem is that state and local governments are raising most of their tax revenue from regressive taxes on what people buy, or the homes that they own or rent, and those expenses swallow up a larger share of income for low- and middle-income people.”