Tuesday, November 28, 2023
Tennessee Collects Third-Lowest Taxes per Capita in Country, Analysis Shows
A new analysis by the international research think tank Tax Foundation shows which states in the nation collect the least and most taxes per capita as of fiscal year (FY) 2021, the most recent year for which full state-by-state data are available.
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That’s one of the reasons I moved here.
ReplyDeleteAnd sadly, that's why a lot of north-East Libs are moving to Nashville and Memphis and fucking those once delightful cities up.
DeleteThere hasn't been anything delightful in Memphis in 45 years and in Nashville in 35 years. I lived in both.
DeleteJpaul
Damn revenuers!
ReplyDeleteRecognize that the variation from state to state -leaving aside the rapacious ones- is pretty small. But that said, yes, one major reason Tn is attractive is it's tax structure which make hiding increases very very hard. And since most Tn revenue is from sales tax, there are no free riders, unlike the states that use an income tax.
ReplyDeleteNope, the variation is pretty dramatic. I have lived in nine states, and I can certainly tell the difference. The total tax burden (all taxes except federal tax) in New York is 12.5%, while in TN it is 6.3% in 2023 (per wallet hub). For a household making $100K a year, that's a difference of $6200. More important is what those taxes carry with them -- hyperregulation. The regulatory costs of the high tax states magnify the tax difference. For instance, when I lived in Maryland, the *regulatory cost* of building a home was, on average $90,000. In other words, before you dug one shovel full of dirt or laid one brick, you had to pay the state and county almost a hundred grand for the privilege. I had a home in Northern Virginia that had a little bit of acreage. I decided to clear a little bit in order to plant a garden. The permitting process for being allowed to cut down the trees in a 100 ft x 100 ft square of land in a 64 acre forest was $800.
DeleteWhen talking about taxes, it's important to include these regulatory costs. It's even more important because this combination of taxes and regulations kills people. One study of federal regulations found:
We find that a 1% increase in federal regulation of state economies is associated with an increase in an index of state mortality of between 0.53% and 1.35%. These findings are robust to the form of mortality measure, choice of covariates, and the inclusion/exclusion of various regions, states, and industries.
(Broughel, J. and Chambers, D., 2022. Federal regulation and mortality in the 50 States. Risk Analysis, 42(3), pp.592-613)
While this study looked only at federal regulations, it is safe to assume that state regulations have a similar effect.
Everyone pretty much has to pay taxes and it is usually more then we would like
ReplyDeleteI moved to Columbia Tn in 2004, I remember the Democrats trying to hold a Midnight session to pass a income tax bill. Dave Ramsey found out about it and blasted the airwaves with it and thousands of people showed up and blocked access to the capital. Put a quick end to that.
ReplyDeleteThe Tax Foundation is good, BUT BEWARE when they tell you that Pennsylvania is "good" because of "only" 3% or so state income tax rate. When I saw that a few years ago I said "waaaaait a minute here!" They are omitting the LOCAL income tax rate, often around 2%. So it should be lumped in with the states with a 5% income tax rate, most of which don't have local income taxes. And of Pennsylvania jacked up its gas tax big time, maybe even more expensive than New York now. It's a shame. Back around the time of the Tea Party, with Republicans in control of Gov. + legislature, they could have captured the moment and gone low-tax/high-freedom and been distinctively different than its socialist pig neighbors NY / NJ / MD. But gutless RINOs did the opposite. Major missed opportunity. (If Tax Foundation has fixed its methodology, my congratulations and apologies to them.)
ReplyDeleteSome of the lowest taxes in the nation, AND the State had a budget surplus.
ReplyDeleteHuh, how exactly do these other states 'run', if they take in more money and run a deficit?
Just kidding, I used to live in NY! Its the graft!
Good! we're soon to be refugees there from the craziness of CA. I was born and raised here in CA and just can't take it anymore. Selling my business which has been an uphill battle, entirely due to enviro regs, and loading up our two diesel trucks and heading to Tenn. Don't worry though, my politics would be considered "right wing extremist", in the south even.
ReplyDeleteI must be paying for folks that don’t pay at all, I know they get way more than $4k out of me; especially here in Memphis. I think this think tank forgets that consumers pay the business taxes of service and retail industries. - Roaddevil
ReplyDeleteIt is very obvious driving down roads in Tennessee.
ReplyDeleteNo argument there. I'm constantly dodging potholes and shitty pothole repairs.
DeleteOn the other hand, rough roads do make people keep their speed down.