• pwnicholson@lemmy.world
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    5 months ago

    Horrible way to display this.

    In states with no income taxes and mostly regressive taxes like sales taxes and other consumption tax, the rich with large income (who always disproportionately account for all income in any state) pay a very low share of their income in taxes. Some people will be paying 10% of their income in taxes because their entire income is spent every month and taxed as consumption (sales taxes). While others pay only 2% of their income in taxes because a good portion of their income goes into savings and tax-free retirement accounts and not on consumption.

    Meanwhile states with a progressive income tax ensure that (closer to) everyone pays a more fair share of their income. So the rich end up paying more of their income. While lower income families pay a lower sales tax rate (and/or are able to see the benefits of better social programs funded by the taxes on the wealthy)