Friday, March 04, 2011

Tennessee is still Number 1 in after Tax Purchasing Power

This is a follow up to a post last year. New data is available from the Tax Foundation.

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 New York, Hawaii, Connecticut, New Jersey, and California, the bottom five States.


Total State and Local tax Burden as % of Personal Income
Cost of Living Index by State
Index of After Tax (State and Local) Purchasing Power
Tennessee
7.6%
89.49
1.03
Kentucky
9.3%
89.21
1.02
Oklahoma
8.7%
90.09
1.01
Texas
7.9%
91.04
1.01
Arkansas
9.9%
90.61
0.99
Missouri
9.0%
91.66
0.99
Nebraska
9.8%
91.09
0.99
Mississippi
8.7%
92.26
0.99
Kansas
9.7%
91.31
0.99
Alabama
8.5%
92.74
0.99
Georgia
9.1%
92.21
0.99
Idaho
9.4%
93.04
0.97
Iowa
9.5%
93.98
0.96
Ohio
9.7%
93.85
0.96
Indiana
9.5%
94.19
0.96
West Virginia
9.4%
94.4
0.96
Louisiana
8.2%
96.15
0.95
Utah
9.7%
95.15
0.95
Michigan
9.7%
95.25
0.95
North Dakota
9.5%
95.91
0.94
South Dakota
7.6%
98.53
0.94
North Carolina
9.8%
96.21
0.94
Illinois
10.0%
96.08
0.94
Wyoming
7.8%
98.66
0.93
South Carolina
8.1%
98.71
0.93
Virginia
9.1%
97.66
0.93
New Mexico
8.4%
98.88
0.93
Wisconsin
11.0%
96.45
0.92
Florida
9.2%
98.39
0.92
Montana
8.7%
100
0.91
Nevada
7.5%
101.39
0.91
Colorado
8.6%
102.23
0.89
Pennsylvania
10.1%
100.67
0.89
Delaware
9.6%
102.4
0.88
Arizona
8.7%
103.73
0.88
Minnesota
10.3%
102.23
0.88
Washington
9.3%
103.98
0.87
Oregon
9.8%
110.47
0.82
New Hampshire
8.0%
116.68
0.79
Maine
10.1%
116.42
0.77
Massachusetts
10.0%
117.8
0.76
Vermont
10.2%
120.38
0.75
Rhode Island
10.7%
123.25
0.72
Maryland
10.0%
124.81
0.72
Alaska
6.3%
132.64
0.71
New York
12.1%
128.29
0.69
New Jersey
12.2%
128.47
0.68
Connecticut
12.0%
130.22
0.68
California
10.6%
132.56
0.67
Hawaii
9.6%
165.56
0.55




Cost of Living Index for States - 2010









State and Local Tax Burden by State - 2009