1. Washington
> ITEP index score: -12.6%
> Effective tax rate lowest 20%: 16.8% (the highest)
> Effective tax rate top 1%: 2.4% (5th lowest)
> 2013 Gini coefficient (pre-tax): 0.46 (19th lowest)
Washington’s score of -12.6% was the worst in the nation. The poorest 20% of families paid nearly 17% of their income in state and local taxes, the highest such rate nationwide. With the wealthiest 1% of state households paying just 2.4% — nearly the lowest such rate — Washington’s tax system helped widen the income gap more than any other state. Washington’s poorest residents paid nearly seven times what the wealthiest 1% paid as a share of income, one of the highest such ratios nationwide. While Washington’s tax code is considered by many to be among the nation’s most unfair, residents are better-off financially than in many other states. A typical household earned $58,405 in 2013, one of the higher household median incomes. And while 15.8% of Americans lived in poverty that year, 14.1% did in Washington.
Read more: 10 States With the Worst Taxes for Average Americans – 24/7 Wall St. http://247wallst.com/special-report/2015/02/05/the-states-with-the-worst-taxes-for-the-average-american/#ixzz3R6zn8nVo
Follow us: @247wallst on Twitter | 247wallst on Facebook