TAXES in the 50 States * Types of taxes * How we tax

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TAXES in the 50 States Types of taxes How
we tax sin? Case ALABAMA (clip)
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Intro to TAX debates - most states have
boom/bust cycle (why?) progressive vs.
regressive as of income is a tax
exportable to other states citizens is a tax
elastic is it stable, or is it very sensitive
to the size of the tax over time - 17c on every
U.S. spent by state/local gov!
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• Types of State/Local TAXES
• Income taxes
• Sales taxes
• Property taxes
• User fees
• Gas taxes
• Sin taxes
• FYI Iowa taxes avg. or slightly above

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• Personal INCOME tax
• 34 of state tax
• NONE AK, FL, NV, SD, TX, WA, WY
• NY, CA, VT have highest income tax!
• IA most pay 6-9 (40 pers. credit)
• Socio-econ. impact PROGRESSIVE!

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INCOME tax pros/cons
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• SALES taxes
• 33 of state tax
• NONE AK, DE, MT, NH, OR
• Most localities tack on another
• Iowa has 6 tax 1 local option
• Most states exempt food clothes!
• Internet is under a tax moratorium ? lost
  revenue of about 50 billion!
• Socio-econ impact REGRESSIVE!

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SALES tax pros/cons HINTS what is it taxing,
how is it collected, efficiency, who
pays?
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• PROPERTY tax
• 70 of local tax revenues
• AVG 1.5 of taxable home value
• NH 3.3 ? no state income tax
• CA home price inflation ? revolt cap from
  high to low in EDUC
• Why is property tax so unpopular?
• Mostly CLASS-NEUTRAL, but even renters end up
  paying some of it!

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• State-levied User fees
• Drivers license/car registration fees
• Tuition charge soak out of staters
• Toll roads, parks/camping fees, etc.
• Most of us dont have a problem with them if
  theyre not exorbitant. Why?

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• GAS tax is it a type of sin tax?
• 18 cent federal state tax avg .27
• 8 cents AK, up to 45 cents CA,NY
• Socio-econ impact REGRESSIVE!
• Most goes to road-related spending controversy
  w/ Culver State Patrol!

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• SIN taxes
• A growing of state tax revenues!!
• REGRESSIVE!
• Theory create incentives for what you want more
  of, and TAX those things you want to stop or
  reduce!
• See EXAMPLES on next page should we tax 7
  Deadly Sins?

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• Sin tax Behavior Govt. Interest
• CIGS Addiction/stench public health costs
• Alcohol Drunkenness public health costs
• Junk food Overeating cost 75 billion/yr.
• Casino Addiction/gambling tax revenues!
• DUIs Drunk driving road safety/health TX
  1000 surcharge!!
• Strip clubs Sexual deviance promote morality!
  UT 10 extra tax
• Luxury/ jet-setting/wealth Out-of-staters
• tourism tax revenues!!!

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PBSs Now Taxing the Poor tax policy in
ALABAMA _____________ To what extent is state
tax policy a moral issue ? THOUGHTS