Should Federal income taxes vary by state ?
The reason I ask..is someone just asked the question... "am I considered middle class with 100k per year ?" Immediatley I thought.... depends on where you live ! In FL, you would be living great on 100k... not so much in parts of California though... Should income taxes vary by state, according to the average cost of living in that state ?...wouldn't this help to keep the standard of living in the US somewhat uniform accross the country ? And wouldn't it help the state to lobby on your behalf to keep your income tax low ? well as far as standar of living...I meant to say... standard of living being more uniform for the middle and lower class. Anyway.. thanks for the answers.... it was just a thought.
Public Comments
- we should get tax CREDITS for all the other taxes we pay. Not a tax deduction.
- Sure. People from the northeast tend to make higher wages and are therefore taxed at a higher rate. Blue states tend to pay more in federal taxes then they recieve. It's the opposite for red states. I think this might work. You can use the whole "personal responsibility" and "pick yourself up by your own bootstraps" arguments against them.
- No, because cost of living differentials are mostly effected by state and local policies, taxes and economic environments. Why should someone pay less federal taxes than I simply because they live in a burdensome state?
- Great add some more complexity to the tax code - point taken but I think we all need less tax.
- Yes! And the denizens of CA, NY, MA, and MN should pay the most!
- HOW ABOUT NO FEDERAL INCOME TAX!!! now doesn't that sound a lot better?
- we need to get fid of income tax and adopt a fair tax H.R.25 http://www.pafairtax.org/resrcs/faqprintpdf.pdf
- No,just abolish the IRS
- No. Incomes vary by state. You would be living great in Florida on $100K per year, because in general, incomes are lower than that. In comparing costs of living, I probably wouldn't have used Florida for my example, where housing costs are way out of proportion to income. In general, states where $100K is a great deal of money, the costs of living are substantially lower. The converse is also true, in states with higher costs of living, incomes are higher. We do have the choice of where we live, by the way. Additionally, the higher the cost of living, the greater the deductions, so the standard of living is already adjusted in this manner.
- Wow, and you think the system is corrupt now!! Just wait and see how much the members of congress can get done when all they ever do is fight over their states tax level!!!
- The tax rate shouldn't vary by state. First we need to clarify the fallacy that the average American makes $100,000 per year. At $120,000 you are in the top 10% of all wage earners and the average is $29,500. Anyone who makes $100,000 should pay a greater percentage than someone who makes $29,500. In fact, a person who makes $29,500 shouldn't have taxes taken out of their pay check. Yes, people making this amount have approxiamtely 30% taken out.
- I think that's a really good idea. The Bible Belt has the most use of Welfare, so let them pay more into the system the us that are else where.
- i guess if you are hillary clinton, that would be a great idea. eveybody could have an equally adjusted cost of living. then nobody would be unfairly geographically discriminated against. barf
- No, just change state and local taxes.
- No,in fact it's a very bad idea. The fact that the cost of living is so extraordinarily high in some states is because of their policies,not Federal Taxes. Is it the entire countrys fault California is one of the most highly taxed,highly regulated states in America,making it very expensive to live there? Answer of course is no,so if the states take care of their own problems they will bring down their cost of living,it's not the Federal Govt's job to clean up their mess. AD
