With the end of the year approaching, Americans are beginning to turn their attention towards tax season. In addition to $3.3 trillion in federal taxes, last year Americans paid $950.5 billion in state taxes distributed across sales, income, property, license, and other taxes. Across all states, sales and gross receipts taxes were the largest source of state tax revenue, followed closely by income taxes; however, the breakdown of tax revenue by state varies widely.
Most Americans are aware that their pocketbooks will be affected differently depending on what part of the country they live in, but few understand just how their hard-earned dollars are converted into funds used to support state education, health care, transportation, and other public services. How states choose to collect taxes impacts both the amount that citizens have to pay every year and the primary vehicles through which they pay them.
Take a look at the full breakdown.
Filed under: ChicagoNow News