We are Number 1, Tennessee is tops in after Tax purchasing power

This is a very simple analysis but interesting. I simply took the Tax Foundation numbers for total State and Local Tax Burden and then adjusted for Cost of living. This produces a simple index of after tax (State and Local) purchasing power. Using the sources cited below, Tennessee has the highest average after tax purchasing power. The difference is dramatic when comparing Tennessee with Hawaii, New Jersey and California, the bottom three States.

	Cost of Living Index by State	Total State and Local tax Burden as % of Personal Income	Index of After Tax (State and Local) Purchasing Power
Tennessee	88.8	8.30%	1.03
Oklahoma	88.5	9.80%	1.02
South Dakota	91.3	7.90%	1.01
Texas	90.9	8.40%	1.01
Arkansas	90.1	10.00%	1.00
Kentucky	90.9	9.40%	1.00
Missouri	91.2	9.20%	1.00
Alabama	92	8.60%	0.99
Nebraska	90.9	9.80%	0.99
Georgia	91	9.90%	0.99
Kansas	91.5	9.60%	0.99
Mississippi	92.8	8.90%	0.98
Indiana	92.3	9.40%	0.98
Idaho	92.3	10.10%	0.97
Iowa	93.6	9.30%	0.97
West Virginia	93.9	9.30%	0.97
Ohio	93.5	10.40%	0.96
North Dakota	95.1	9.20%	0.95
Louisiana	96.9	8.40%	0.95
South Carolina	97.1	8.80%	0.94
Illinois	96.7	9.30%	0.94
Michigan	96.9	9.40%	0.93
Utah	96.9	9.60%	0.93
Wisconsin	96.4	10.20%	0.93
North Carolina	96.9	9.80%	0.93
Wyoming	100.6	7.00%	0.92
New Mexico	100	8.60%	0.91
Florida	101.5	7.40%	0.91
Virginia	99.6	9.80%	0.91
Pennsylvania	100.8	10.20%	0.89
Delaware	101.9	9.50%	0.89
Montana	103.9	8.60%	0.88
Nevada	106.4	6.60%	0.88
Minnesota	102.8	10.20%	0.87
Washington	104.6	8.90%	0.87
Arizona	105.2	8.50%	0.87
Colorado	105.1	9.00%	0.87
Oregon	114.3	9.40%	0.79
Maine	114.7	10.00%	0.78
New Hampshire	118	7.60%	0.78
Massachusetts	118.7	9.50%	0.76
Vermont	119.1	10.30%	0.75
Rhode Island	119.4	10.20%	0.75
Alaska	128.3	6.40%	0.73
Connecticut	125.3	11.10%	0.71
Maryland	126.4	10.80%	0.71
New York	125.8	11.70%	0.70
New Jersey	127.4	11.80%	0.69
California	135	10.50%	0.66
Hawaii	165.3	10.60%	0.54
Cost of Living Index for States - 2009
http://www.ded.mo.gov/researchandplanning/indicators/cost_of_living/index.stm
State and Local Tax Burden by State - 2008
http://www.taxfoundation.org/files/sl_burden_1977-2008-200808072.xls