Archive for the ‘State Taxes’ Category

U.S. Tax Rate Up to 87% For Some Taxpayers

Wednesday, May 25th, 2011


From 1940 to 1963, the top marginal income tax rate in America was between 81% and 91%. Today’s federal rates on even the highest earners are much lower. However, with the help of state and local governments, high-income investors can end up forfeiting 60%, 70% or even more than 80% of their profits from the time they’re generated through the moment they’re spent.

- Jack Hough, Smartmoney

Through a combination of living in a highly taxed state, such as New York, receiving corporate dividend profits, and purchasing specially taxed items such as cigarettes and cellphones, your average tax may be up to 87%.

Usually my clients need my services as a tax attorney because they haven’t paid their taxes at all, but as the Smartmoney article makes clear, you can make the mistake of paying too much tax. The solution is to stay informed, keep clear of tax ripoffs (I published a tax ripoff report just the other day), and find an experienced tax advisor and avoid tax scams and ripoffs.

Until next time,

Jeffrey I. Fouts, Tax Attorney

Embarrassing Gas Tax Grab by States Overcharging You For Gas

Sunday, August 1st, 2010

deserted gas station
Some states are greedier than others. One of the ways you can tell is by comparing which states are highly populated and which ones are taking advantage of their populations with high gas taxes.

The top ten most populated states (in order) are:

  1. California
  2. Texas
  3. New York
  4. Florida
  5. Illinois
  6. Pennsylvania
  7. Ohio
  8. Michigan
  9. Georgia
  10. North Carolina

And the ten least populated states (in order) are:

40. New Hampshire
41. Maine
42. Hawaii
43. Rhode Island
44. Montana
45. Delaware
46. South Dakota
47. Alaska
48. North Dakota
49. Vermont
50. Wyoming

(source: Wikipedia)

Now look at the states that have the highest gas tax:

  1. California
  2. New York
  3. Hawaii
  4. Connecticut
  5. Illinois
  6. Washington
  7. Michigan
  8. Florida
  9. Indiana
  10. Nevada

… and the lowest gas tax:

40. New Hampshire
41. Virginia
42. Arizona
43. New Mexico (tied)
43. Mississippi (tied)
45. Missouri
46. Oklahoma
47. South Carolina
48. New Jersey
49. Wyoming
50. Alaska

(Source: TaxFoundation)

So, what does this tell us? California has a huge population and huge tourist base and they are making a mint on gas tax. Other states with similar high populations/high gas taxes include New York, Florida, Michigan, and Illinois. Alaska, which has one of the lowest populations also has the lowest gas tax rate.

Check out the Tax Foundation resource on state gas tax and download the PDF or Excel resource of where your taxes are allocated.

[Image source: Alex E. Proimos]

Pamela Anderson Back Tax Problems and IRS Debts

Monday, May 24th, 2010

pamela anderson taxes Pamela Anderson, the Dancing With the Stars contestant has made California’s list of the top 250 people and businesses who owe more than $100,000 to the state. California claims that Ms. Anderson’s personal income tax owed is $493,144.68.

The former Baywatch star, Malibu resident and current Dancing With the Stars diva should have plenty of money to pay state income taxes and claims it was a simple misunderstanding that will soon be resolved.

Read more about Pamela Andersons back tax problem at the LA Times.

The Greediest States

Wednesday, March 17th, 2010

The Declaration of Independence asserts that all men (and women) are created equal. This document was written partly in response to the burdensome taxation that the colony felt from Great Britain. And, although we still believe today that all men are created equal, we are certainly not taxed that way. Your taxes can be dramatically higher, based solely on your geographic location. I looked at some basic data to discover which states are the greediest.

First, consider the states with the highest and lowest median household income.

The highest ten in 2008 (in order from highest to lowest) were:

  1. New Jersey
  2. Maryland
  3. Connecticut
  4. Alaska
  5. Hawaii
  6. Massachusetts
  7. New Hampshire
  8. Virginia
  9. California
  10. Washington

(Source: Wikpedia)

Now, check out this map of state and local tax burdens:
US states tax rates

The top ten highest tax burdens are:

  1. New Jersey
  2. New York
  3. Connecticut
  4. Maryland
  5. Hawaii
  6. California
  7. Ohio
  8. Vermont
  9. Wisconsin
  10. Rhode Island

So, what does that tell you? It tells me that the greediest states are New Jersey, Connecticut, California, Hawaii, and Maryland and they are getting a lot of money by burdening their higher-than-average income earning populace with a higher-than-average tax burden. We’re not just talking about tiered taxation but about geographic taxation!

It also tells me that the tax payers in Alaska and New Hampshire are very fortunate: They each are in the top ten average median income-earning states but they are also each in two of the bottom ten tax burden states – New Hampshire has the 46th lowest tax burden and Alaska has the 50th lowest tax burden.

Fouts Law Office · 772 Maddox Drive, Suite 114 · East Ellijay, GA 30540 · Tel: (800) 509-2770 · Fax: (706) 636-5293
Home | Sitemap | *Disclaimer* | Affiliate Program | Income Tax Videos | State Taxes | Tax Attorney | Tax News