WILBERT WILLIAMS on LinkedIn: Mapped: Every State’s Biggest Source of Tax Revenue (2024)

Mapped: Every State’s Biggest Source of Tax Revenuehttps://ift.tt/nVJeuMs See this visualization first on the Voronoi app.Use This VisualizationMapped: Every State’s Biggest Source of Tax RevenueThis was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.Most of America’s federal government revenue is raised through personal and corporate income taxes. But how do individual states raise money for government activities?We visualize each state’s largest source of tax revenue, color-coded by personal income, sales, or other taxes. Data was sourced from Pew Research and is current up to 2023. Sales include general and selective sales taxes. Other taxes include levies on corporate income, licenses, property, and severance taxes.Breaking Down Every State’s Tax Revenue ShareA vast majority of states raise most of their tax revenue through general and selective sales taxes. Here’s the share of each category to all the tax collected by each state.StatePersonalIncome Tax (%)Sales Tax (%)Other Tax (%)Alabama354817Alaska0991Arizona216415Arkansas255223California443422Colorado374419Connecticut404020Delaware371053Florida08020Georgia493516Hawaii30619Idaho295120Illinois354322Indiana39547Iowa364816Kansas344323Kentucky354916Louisiana305119Maine394813Maryland414316Massachusetts533017Michigan314920Minnesota413722Mississippi236413Missouri504010Montana492031Nebraska414712Nevada07723New Hampshire42967New Jersey364024New Mexico193744New York472627North Carolina434611North Dakota83062Ohio29656Oklahoma324028Oregon642017Pennsylvania314920Rhode Island345511South Carolina374815South Dakota08515Tennessee07426Texas08515Utah484111Vermont273340Virginia453817Washington27424West Virginia354520Wisconsin394417Wyoming04555Note: Figures rounded. New Hampshire and Washington report capital gains and dividends collections under personal income tax. Oregon reports corporate activity taxes under sales tax.For six states with no broad-based personal income tax (South Dakota, Florida, Texas, Nevada, Washington, and Tennessee), sales taxes contribute more than 70% to all tax dollars raised.Then, in direct contrast to neighbor Washington, Oregon has no sales tax, so personal income tax is their majority collection.For states with a higher median income (California, New York, Massachusetts) the largest share is personal income tax.And then there are the states which don’t fall in either of the two main categories. For example, Alaska also has...

The City of Portland changed how business owners may calculate the adjustment for "previously taxed income" (PTI) on their personal Multnomah County Preschool for All (MC-40) income taxes. Their guidance is at https://lnkd.in/gZgyUKqk. It's a confusing read with incomplete examples. Their presentation at the State & Local Tax Conference was unfortunately not given sufficient time and felt rushed. Myself and a handful of other attendees could not follow along:"Is this only confusing to me? What are they talking about?" (that was me)"I don't understand. Do you?" "Hella complex. This is a lot of work. 🤦♂" "He's lost me." "We have to do this for every client?" This is from professionals who do this for a living. It requires complex allocation worksheets to determine what's best for each business. Those worksheets don't exist. There's no form. We have to build it.Then we have to educate our clients to make an informed decision, because technically it's an election on the business tax return. And technically it's a consenting election, but there's no rule or process for documentation of owner consent. The election could be less beneficial to one owner, and more to another. In the City's example, the election reduced taxable income for one owner by $87.5k, but it increased taxable income for the other owners by $43.8k each.So how do you pick making the election or not? What is the better option? You'd need to look into the personal tax returns for a complete answer. And there are a variety of statement disclosures required with the business reporting once that decision is made. We have to create all of it. Again, there's no form.While it may seem like little-enough information at the end of the day, if you just look at the tax return, it's a prime example of the ever-expanding scope of work tax professionals face while looking out for their clients' best interest.A lot of complexity can lurk in the background, and the cost of working with someone unfamiliar with your filing obligations could be significant.

3

More Than $10 Billion a Year in Higher Taxes and Fees Approved by Lawmakers and Governor in 2023. SACRAMENTO – During the first year of the 2023-24 legislative session, lawmakers and the governor approved more than $10 billion in higher taxes and fees, increasing the cost of living for residents, the nonpartisan California Tax Foundation reported today. The foundation’s Tax and Fee Report [caltax.org] tallies 93 proposals with higher taxes or fees, including 46 that became law. Of the 46 new laws that include taxes or fees, the 17 that can be quantified represent $10.42 billion in new costs to taxpayers. The 29 measures with unknown costs also will add to the tax and fee burden in the state.The potential cost to taxpayers can be quantified for 58 of the 93 measures included in the report, for a cumulative total of $203.5 billion a year in additional taxes and fees if all were approved. Many of the measures remain alive as the Legislature prepares to launch the final year of the two-year session.Taxes and fees enacted this year include an extension of a tax on managed care organizations estimated to increase taxes by $8.2 billion, a constitutional amendment that proposes to lower the vote threshold necessary to increase local taxes, and five bills that allow local governments to circumvent the transactions and use tax cap and impose higher sales taxes. These proposals come at a time when many Californians worry about rising costs, and voters believe the state no longer will be affordable for future generations. According to a recent Public Policy Institute of California survey [ppic.org]: “A record-high 71 percent of Californians think that when children today in California grow up, they will be worse off financially than their parents.” The taxes and fees increased in 2023 likely will add to California’s high cost of living. Read the report here: https://lnkd.in/gXGh9xN3

3

Tomorrow marks a significant milestone for CPA Canada members, it is the trust filing deadline. Thursday’s announcement from CRA exempting bare trust reporting requirements for 2023 left many CPAs frustrated, and it signals the need for collaboration between the government and the private sector to ensure thoughtful and appropriate tax legislation.We would like to thank all the CPAs out there that shared their comments with CPA Canada in response to Thursday’s announcement.The bare trust situation is another reminder that a review of our complex tax system is long overdue. Canada’s tax system has become increasingly convoluted and difficult to comprehend, even for experienced tax professionals.CPA Canada has been a vocal advocate for change. The recognition of the legislative flaws with Bare Trusts and the UHT serves as an opportunity to address what is required to ensure policy and practice meet before millions of dollars are spent in unnecessary compliance. CPA Canada would like to recognize the dedication of our CPAs who spent countless hours helping taxpayers understand their filing obligations.Even though there was a lack of guidance, you have delivered purposeful work that demonstrates your role in supporting a robust Canadian tax system. The conversation and the work continues. CPA Canada will continue to advocate for its members and work to bring further awareness to CRA and Department of Finance. Adequate public and expert consultation is required to understand the reporting burden on tax filers. https://lnkd.in/dwVKc7Fb

224

8 Comments

Check out some of the IRS's tax season tips!IRS Online Account EnhancementsWhen filing taxes this year, you have the convenience of accessing your online account with the IRS. From there, you can conveniently view, approve and electronically sign documents provided by your tax professional.Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC)For those claiming the EITC or ACTC, it’s anticipated that refunds will be processed after mid-February. According to the law, the IRS is mandated to withhold the entire refund, with the majority of recipients expected to receive it by February 27, 2024. Gathering 2023 Tax DocumentsTo streamline the tax filing process, the IRS suggests establishing an organized record-keeping system that consolidates essential information in one accessible location.To view more tips from the IRS, visit https://lnkd.in/gw9jbXea

3

One common question that we hear this time of year is “When will I see my tax refund in my account?”. Not receiving your refund can be due to many reasons, many out of the control of the taxpayer or the CPA. This article tells of many things that we can control that will aid in tax refunds being seen as soon as possible.

4

🚨 Income Tax Paying Adult Population• France 🇫🇷 - 78.3%• Germany - 61.3%• USA 🇺🇸 - 50.1%• UK 🇬🇧 - 59.7%• India 🇮🇳 - 2.2%Income Tax Payers Are the Biggest MinoritiesSince 2000, there has been a downward trend in average effective tax rates for all but the richest taxpayers – those with AGIs of $10 million or more. But the three major tax law overhauls during this period have affected different classes of taxpayers quite differently:The Bush tax cuts of 2001 and 2003 benefited the highest-income taxpayers the most. Those with AGIs of $5 million or more saw their average effective tax rate drop from 27.2% in 2002 to 23.2% in 2003. Taxpayers with AGIs between $500,000 and $5 million saw their average effective rates fall from 28.8% to 25.5%. Other taxpayers with lower incomes experienced much smaller rate cuts.In 2013, by contrast, two provisions aimed squarely at higher-income taxpayers kicked in. A new net investment income tax and Medicare surtax, enacted to help pay for the Affordable Care Act (“Obamacare”), helped raise the average effective tax rate on the highest-earning taxpayers (those with AGIs of $5 million or more) from 20.7% in 2012 to 27% the following year. Those with AGIs ranging from $500,000 to under $5 million also saw their average effective tax rate increase, from 24.2% to 27.5%, while other groups experienced little to no change.The Trump tax cuts of 2017, which altered provisions throughout the tax code, had their biggest impact on upper-middle-income taxpayers: those with AGIs of at least $200,000 but less than $500,000. Although average effective tax rates fell for all income groups, they fell the most for that upper-middle group, from 19.2% in 2017 to 16.6% in 2018.Besides average effective tax rates, another way to look at the relative burden on different groups of taxpayers is by examining how much of the total bill they foot.The IRS collected $1.66 trillion in individual income taxes in 2020 (excluding the $78.6 billion in negative tax liabilities referred to earlier). Close to 54% of that sum came from taxpayers with AGIs between $100,000 and $1 million – a group that accounted for just under a fifth of all returns filed (31.3 million), and about 30% of all taxable returns (31 million).

Our Ashtabula County Budget Commission approved changes to tax rates for 5 local government entities to help offset the increase in values and tax amounts for next year. As County Auditor, my role in giving relief and help to property owners is extremely limited. Since I became Auditor in 2019 we have been urging Columbus to work on policies to help property owners, with no luck. As County Auditors saw the perfect storm brewing for taxes next year, we rang the alarm to legislators asking for our policy recommendations to be approved. As of today, very little meaningful work has been achieved. A legislative committee to review the property tax system has not met. Bills have been introduced but are either a Band-Aid measure or do not give relief of any significance. HB187 has good intentions as an example- the House measure would have no real change to Ashtabula County properties by averaging out 3 years of sales, and in Trumbull County the impact is insignificant. The HB187 Senate language would give more relief to seniors through Homestead, but not at the rate needed to counter expected increases. The Senate bill I believe is a measure which at least is targeted and gives state tax revenue to the problem right away. Overall, as we discuss platforms and policy, this is one example of the need for actual policy improvement and systematic change which has not happened. These are complicated issues and will take leaders who are intimately aware of the system. Until then, I can promise you I will be continuing to work everyday as I have to educate, prepare, and make changes at the County level where able. www.davidthomasforohio.com

💲 IMPORTANT TAX INFO! 💲 The Department of Revenue (DOR) is administering the following 2023 TABOR refund mechanism, primarily through the Colorado Individual Income Tax Return (DR 0104):Sales Tax Refund - Eligible 2023 full-year residents may claim this refund by filing in the manner described below by the appropriate deadline. The refund is $800 for one qualifying taxpayer or $1,600 for two qualifying taxpayers filing jointly. ➡️ File a 2023 DR 0104 by April 15, 2024, if you: ✔️ Were at least 18 years old when the tax year began, ✔️Do not have a #Colorado income tax liability,✔️Are not claiming a refund of wage withholding, and✔️Are not otherwise required to file a Colorado return because you have no federal filing requirement.➡️ File a 2023 DR 0104 by October 15, 2024, if you: ✔️Have a Colorado income tax liability,✔️Claim a refund of wage withholding, or✔️Are required to file a Colorado return because you are required to file a federal return..SB23B-003 (Identical TABOR Refund) - TABOR refund mechanism adjustment for tax year 2023. TABOR refunds will provide an equal refund of $800 for all qualifying taxpayers ($1,600 for two qualifying individuals filing jointly). Certain residents may file a 2023 Property Tax/Rent/Heat (PTC) Rebate Application by April 15, 2024, in lieu of filing an income tax return.https://buff.ly/3T3GLHC #Denver #financialplanning #taxes

1

A TAXPAYER BILL OF RIGHTSDireitos do ContribuinteCitizens have the right to participate in tax policy decisions. Citizens have the right to efficient, transparent and accountable government management of public resources. Governments should manage finances prudently, keeping costs, revenues, deficits, and debt to a minimum. Taxes should not create perverse incentives, processes or outcomes. Tax policies should be compatible with economic competitiveness and sustainability, and refrain from social or political engineering or discrimination. Taxes, contributions, and fees should be correlated and commensurate with benefits of public services provided. They should be as local as possible and always politically accountable. Tax laws should be simple and understandable. Tax authorities should provide information and education to help taxpayers understand their rights and fulfill their obligations.Taxpayers must pay only legally mandated fiscal responsibilities. Calculations must be straightforward. Taxpayers should have the ability to know and legally minimize their tax liabilities. Tax laws should permit reasonable deductions especially for private expenses related to public services. Taxpayers have the right to relief during financial difficulties. The state should settle outstanding debts with taxpayers before charging additional tax liabilities.Tax authorities should offer efficient and citizen-centered services. Compliance should be user-friendly through technology. Taxpayers should be able to access their tax records and correct inaccuracies, and not submit information already held by tax authorities. Throughout, taxpayer information must remain confidential and processes discreet. Tax enforcement should be fair, with no discrimination, persecution, intimidation, or undue punishment. Taxpayers should be presumed innocent until proven otherwise, and the burden of proof should lie with tax authorities. Taxpayers have the right to be informed, access audits, and correct errors. In cases of ambiguous tax laws, decisions should generally favor the taxpayer. Penalties should be proportionate and finite. Tax authorities must proactively and promptly provide full restitution for errors made.Taxpayers have the right to resist, and have access to fair dispute resolution, without fear of retaliation. Taxpayers have the right to justice, and protection of their rights through professional representation and organizations. Taxpayers have the right to timely resolution of processes, and debt prescription.-António Costa Amaral 20/Nov/2023

5