What state should you live in to afford the most tractors?

[rback33]

Actually, after studying this list, it is seriously flawed. Our state sales tax is 6%. That leaves the remaining 4.8% of our taxes to property, county, township, school, gas, tire, income, etc, etc.

I was guessing that without REALLY looking at it. Kansas is 15th on the list. I honestly would have NOT guessed we were that high. They get you on property taxes out here though more than income taxes....

 

[tallyho8]

The way I interpret that chart is that the percentage of tax you pay is rated at the median income for that state. Accordingly:
In Vermont you pay 14.1% of your income in state and local taxes if you make $38,306 annually.
In Arkansas you pay 11.3% of your income in state and local taxes if you make $31,145 annually.
It does not compare how much tax each state would collect on any one set income. So if your Vermont income was the same as Arkansas ($31,145), the percentage might be vastly different and maybe even lower than Arkansas.

 

[SnowRidge]

Here is the rational for the rankings, and these are the rankings on their original page.

 

[jeffinsgf]

..DC shouldn't be last on that list, if the list is in tax ranking order. It is a high tax area. Just look at the numbers.

DC is last on the list because it is not a state. It ranks among the highest, but it is not included in that order because it is not a state.

 

[tallyho8]

Actually, after studying this list, it is seriously flawed. Our state sales tax is 6%. That leaves the remaining 4.8% of our taxes to property, county, township, school, gas, tire, income, etc, etc.

I find this chart very accurate for Louisiana. People who make the median income of $34,501 pay 11% of their income in state and local tax. Most people who are in that income bracket here pay 8.75% state and local sales taxes but pay no property tax because they usually live in homes assessed at under $75,000 which are tax exempt. There is very low state income tax on a family that makes only $34,501 a year. The state tax on gasoline is low, the federal tax is high but federal taxes on gas, income tax, social security, etc. are not included on this chart. All of our parish, city, school, drainage, fire, police, etc. taxes are included in our sales or property taxes.

Even though our sales tax is 8.75%, it is not collected on everything (such as mortgage payments) so you pay much less than 8.75% of your income on sales taxes. The remaining 3% (+or-) is more than adequate to pay all other state and local taxes.

 

[SnowRidge]

DC is last on the list because it is not a state. It ranks among the highest, but it is not included in that order because it is not a state.

That was obvious to you and me, but perhaps not to all. To state that the chart is in tax ranking order is misleading when DC is dead last and it is not caveated in any way.

 

[Rara Avis]

We we have more tractors per person in Vermont than most of the states on this list...
That's because more of us are farmers, so our tractors are business deductions...

This is just another example of the way the US Government uses statistics...

Andy...do you work for the US Government????.......

 

[jpm]

well we're also the greenest state according to forbes tonight.i moved to vt for lower taxs and they were but ...

 

[john_bud]

I call BS on the list as it does not include propery tax in the mix.

Sure, if you make the listed median income, your state and local taxes are probably as listed, but you have to live under a bridge to avoid the property tax.

Heck, TurboTax barks at me as my property tax's are out of wack with the income. ( I agree....)

jb

 

[Erik_in_Hoyt]

Ah, statistics!
the art of lying with facts & numbers...

I figure it doesn't matter where I live, I take my gross earnings times .65 and get pretty close to my net.
Sales tax, fuel tax, property tax, and insurance are just things I know are out there and try not to get depressed about them -- I'm just glad they haven't come up with an air tax, yet.