Print

Connecticut Has Most Progressive Distribution Of Federal Income Taxes, Study Says

Janice Podsada

June 08, 2010

Connecticut has the most progressive distribution of federal income taxes among all U.S. states, according to a study based on recently released 2008 Internal Revenue Service data,

The distribution of the burden of federal income taxes among people of different income levels varies widely for each state, said Scott A. Hodge, president of the Tax Foundation, a nonprofit research group based in Washington, D.C., that analyzed IRS data.

"Some states have a fairly even distribution of federal income tax liability while other states have a far more progressive distribution than the national average," Hodge said in a prepared statement.

Connecticut taxpayers who earned less than $50,000 earned 13 percent of the adjusted gross income in the state but paid 5 percent of the federal income taxes paid by all taxpayers in the state, the foundation said. Taxpayers earning more than $200,000 earned 44 percent of the AGI, but paid 66 percent of the income taxes.

The state with one of the flattest distributions of federal income taxes is West Virginia, where those earning less than $50,000 pay 13 percent of the burden while those who earn more than $200,000 pay 33 percent.