I’m confused, WA has no income tax, OR has high income tax… As someone who moved from WA to OR, got a raise, and ended up with smaller paychecks I can attest that this doesn’t represent everyone accurately
For anyone not reading between the lines, taxes like sales taxes and property taxes are designed to disproportionately target those with lower income (i.e., regressive), while income tax is mostly supposed to target higher incomes (i.e. progressive).
WA has no income tax, but it does have a state level sales tax. Low income people spend a larger portion of their income on purchases which results in a much higher tax rate.
I’m confused, WA has no income tax, OR has high income tax… As someone who moved from WA to OR, got a raise, and ended up with smaller paychecks I can attest that this doesn’t represent everyone accurately
This chart is not displaying income taxes. It is displaying the share of all taxes contributed by income brackets.
For anyone not reading between the lines, taxes like sales taxes and property taxes are designed to disproportionately target those with lower income (i.e., regressive), while income tax is mostly supposed to target higher incomes (i.e. progressive).
And Washington actually has the most regressive tax structure in the US because of these factors.
this is the problem with illinois which has a fixed flat income tax in its constitution.
WA has no income tax, but it does have a state level sales tax. Low income people spend a larger portion of their income on purchases which results in a much higher tax rate.
States like California have both high sales tax and State income tax, so that’s definitely a worse outcome.