Study reveals Illinois imposes the heaviest tax load on low and middle-income individuals in the U.S
Illinois: A Taxing State for Low to Middle-Income Earners
Attention all wage earners: if you’re scouting for a tax haven, you might want to steer clear of Illinois. A riveting study by WalletHub has just lifted the veil on the tax burdens shouldered by Americans across the spectrum, and it seems Illinois has snagged a spotlight it would rather avoid.
The personal finance website WalletHub has released “The Best States to be Rich or Poor from a Tax Perspective.” It paints a stark picture for residents of the Prairie State—especially those earning low to moderate incomes.
Delving into the nitty-gritty of state taxes, from sales and excise to property and income taxes, the WalletHub team has diligently crunched the numbers. And for those at the lower end of the income scale, the fiscal findings are less than favorable for Illinois.
The Not-So-Sweet Spot for Low-Income Earners
According to Cassandra Happe, a dedicated researcher on the project, the results spell out a distressing scenario for low-income Illinoisans. “They faced a grim tally, placing 40th for sales and excise taxes, 45th for property taxes, and a concerning 47th for income taxes. In essence, it’s a perfect storm for those already struggling to keep their finances afloat,” she lamented.
The total tax burden? A whopping nearly 14% of income for those earning the least. That’s a stark contrast to Alaska’s less than 7% burden, a breath of fresh fiscal air for its residents.
Across the Income Spectrum
But don’t be mistaken—it’s not only the low-income earners feeling the tax pinch. Middle-income Illinoisans aren’t faring much better, with a rank of 49th nationwide. And the state’s wealthier denizens? They landed at a disconcerting 45th place on the grand ledger of tax burdens.
Where the Grass Is Greener
So where should tax-weary citizens cast their gaze? WalletHub’s top picks for the least tax burden on high-income earners are Alaska, New Hampshire, and North Dakota. Middle-income earners breathe easier in Alaska, New Hampshire, and Delaware. And for those with lower incomes, the havens are Alaska, Montana, and Vermont.
Happe highlights an uncomfortable truth: “Despite the wealthy and less fortunate both being liable for taxes, those with lesser means often suffer disproportionately due to the regressive structure of many tax systems.”
In conclusion, while taxes are an inescapable aspect of life, the impact they have on our wallets can vary drastically from state to state. Illinois, unfortunately, has emerged as a challenging environment for those already working hard to make ends meet. On the bright side, this study shines a light on the more financially forgiving landscapes, encouraging us all to consider the role of taxes in our personal prosperity.
" Conservative News Daily does not always share or support the views and opinions expressed here; they are just those of the writer."
*As an Amazon Associate I earn from qualifying purchases
