Today on CNN Money there is a piece about tax (un)friendly places … Tax Friendly States.
The primary result for us Nutmeggers is that we have one of the highest state and local tax burdens in the country at 12.2%. Connecticut ranks 8th in the Bureau of Economic Analysis’ report that ranks State and Local Tax Burden as a percentage of income. Vermont pays the most at 14.1%, while Alaska pays the least at 6.6%.
Since CT has the highest per capital income in the country, and our percentage paid is 8th, on a dollar basis we are paying the most in the whole country. Now there’s a victory to get excited about; UConn couldn’t get it done, but the tax man can. Go Connecticut!
Once we pile on the Federal income taxes, social security and Medicare our tax picture becomes downright depressing.
Perhaps there is a glimmer of hope. Most people don’t want to move from CT to Alaska, so our best option may be to head north to New Hampshire where they sport the second lowest burden at 8.0%. Or we could follow Killington, Vermont’s lead and try to secede from the state to join NH.