The study, which used data from a 2018 report by the Washington-based Institute on Taxation and Economic Policy (ITEP), did not include federal taxes paid. New Jersey ranked 46th on the study’s list of the most tax-friendly states for the rich.
On average, the top 1 percent of earners in the state take in $1.9 million annually, according to 24/7 Wall St.
Nationwide, the top-earning 1 percent of families pay 7.4 percent of what they make toward state and local levies, the ITEP study concluded. The middle 20 percent of U.S. earners, in contrast, paid more – 9.9 percent.
States with no income tax – or a very low income tax – tended to be the most friendly to wealthy individuals, 24/7 Wall St. reported. That’s because those states tend to rely more on more regressive taxes, placing more of a burden on poorer households, the study found.
republished by Gloucestercitynews.net with permission of The Center Square