Blog note, Featured, Gold Dome, Linda Gorman, Taxes

Colorado’s above average income tax burden

Groups that depend on state tax money for their existence tend to claim that Coloradans are undertaxed.

In a new release, the Tax Foundation calculates that Colorado was 24th in the amount of state and local individual income tax collections per capita. Colorado isn’t yet New York, Maryland, Connecticut, or Massachusetts, but it isn’t Utah, either. According to a 2013 Gallup poll, 41 percent of the people in New York, 47 percent of the people in Maryland, 49 percent of the people in Connecticut, and 41 percent of the people in Massachusetts want to move to another state. Just 25 percent of the people in Colorado want to move.

Income taxes are only part of the story, of course, and Colorado ranked a more reasonable 32nd in the Tax Foundation’s 2011 estimate of total per capita tax burden.

People flee when state governments get too greedy. New York, the per capita state tax burden leader since at least 1977, lost 1.6 million people between 2000 and 2010. This was the equivalent of 8.27 percent of its 2000 population.

The 1.6 million who left included almost 1.2 million taxpayers. According to the IRS, the average adjusted gross income of taxpayers leaving New York was $58,899. The average adjusted gross income of those moving in was $48,432. The Empire Center estimates that New York’s net annual income loss from the out-migration was $37 billion.

Linda Gorman is an economist at the Independence Institute, a free market think tank in Denver.

tax

 

SUPPORT COMPLETE

Our unofficial motto at Complete Colorado is “Always free, never fake, ” but annoyingly enough, our reporters, columnists and staff all want to be paid in actual US dollars rather than our preferred currency of pats on the back and a muttered kind word. Fact is that there’s an entire staff working every day to bring you the most timely and relevant political news (updated twice daily) from around the state on Complete’s main page aggregator, as well as top-notch original reporting and commentary on Page Two.

CLICK HERE TO LADLE A LITTLE GRAVY ON THE CREW AT COMPLETE COLORADO. You’ll be giving to the Independence Institute, the not-for-profit publisher of Complete Colorado, which makes your donation tax deductible. But rest assured that your giving will go specifically to the Complete Colorado news operation. Thanks for being a Complete Colorado reader, keep coming back.

Comments

comments

Comments are closed.