South Carolina

Study: South Carolina has 3rd fairest tax structure

From Staff Reports

newsroom@islandpacket.com

The personal finance site WalletHub has released its annual study of taxation in the United States, and has found South Carolina to be the state with the third fairest tax system.

The rankings are based on surveys of what residents think a fair tax system looks like compared to the actual tax burden across low, middle and high-income groups in their states.

Among the findings:

• The poor are most overtaxed in Washington, Hawaii and Illinois; the wealthiest 1 percent are most undertaxed in Wyoming, Nevada and Florida.

• The middle class is most overtaxed in Arkansas, New York and Mississippi.

• Most Americans think “fair” state and local tax systems impose higher taxes on higher-income households than on lower-income households.

• Conservatives and liberals generally agree on what a “fair” tax system looks like. However, conservatives are more supportive of slightly higher taxes on the poor and lower taxes on the wealthy.

• Current state and local tax systems are, on average, extremely unfair. While most Americans — liberals and conservatives — think a progressive tax system is most fair, virtually every state has regressive state and local tax structures.

• Both “blue” states and “red” states are found to overtax the poor and undertax the rich, relative to what most Americans consider “fair.”

A table showing select additional data from the study can be found below these graphics.

Source: WalletHub
States with Most & Least Fair Tax Systems Artwork 2015 
Source: WalletHub
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