<$BlogRSDURL$>
Return to Main Page | Ragout: The State Tax Squeeze
Ragout
A Spicy Stew of Economics, Politics, Data, Food, Carpentry, etc.
 
Tuesday, August 17, 2004

The State Tax Squeeze


One of the points Howard Dean made during the primaries was that the Bush tax cuts were just resulting in state tax increases, as the federal government cut aid to the states. Progressive journalist David Sirota has been making this point too, as have Jonathan Weisman and Neil Irwin, writing in the Washington Post. Sirota also points out that four times as many people (49%) report that their overall taxes (federal state and local) have gone up, as report that their taxes have gone down (13%).

According to the National Association of State Budget Officers (report: big pdf), Dean's analysis was reasonably accurate. In 2001, seven consecutive years of state tax cuts came to an end. Since then, state taxes have gone up $18.2 billion dollars, on net, and are slated to rise another $5.4 billion next year. So state taxes have gone up about $165 per household on average.

How does this compare to the Bush tax cuts? According the the CBO, the middle 60% got a federal tax cut of about 2% of their income, which would be about $840 for a household at the median income of $42,000. So state tax increases offset a good chunk of the Bush tax cuts, about a fifth. Of course, property taxes have gone up too, as the states in turn cut aid to local governments.


 
|










































Number 1 in Ragout Economics!

ARCHIVES
March 2004 / April 2004 / May 2004 / June 2004 / July 2004 / August 2004 / September 2004 / October 2004 / November 2004 / December 2004 / January 2005 / April 2005 / May 2005 / June 2005 / July 2005 / August 2005 / September 2005 / October 2005 /

LINKS
First Team
Angry Bear
Atrios
Crooked Timber
Brad DeLong
Econbrowser
Economist's View
Freakonomics
Mark Kleiman
Nathan Newman
Political Animal
Max Sawicky
Brian Setser
Sock Thief
Talking Points Memo
Tapped
Matthew Yglesias

Second Opinion
Stephen Bainbridge
Marginal Revolution
Andrew Samwick
The Volokh Conspiracy

Third Way
Fafblog
NewDonkey

Fourth Estate
Economic Reporting Review
New York Times
Slate
Washington Post

Fifth Republic
Ceteris-Paribus
Econoclaste
Le Figaro
Le Monde

Sixth Sense
Deltoid
The Intersection
In the Pipeline
What's New

Politics & Polls
Daily Kos
Donkey Rising
Electoral Vote Predictor
MyDD
PollingReport
PollKatz
Rasmussen Tracking Polls

Other
Art Sucks
Enzo Titolo
L’esprit d’escalier
A Level Gaze
Approximately Perfect


EMAIL
ragoutchef at yahoo dot com

[ATOM]

Powered by Blogger