The Connecticut chapter of the National Federation of Independent Business is critical of a new report showing the state has the second highest tax burden. The study says 12.6 percent of residents earnings are earmarked for state and local taxes.
The Tax Foundation report focuses on states’ 2012 fiscal years. It said New Yorkers faced the highest burden, with 12.7 percent of income in the state going to state and local taxes. Connecticut is followed closely by New Jersey at 12.2 percent. On the other end of the spectrum, Alaska, 6.5 percent, South Dakota, 7.1 percent, and Wyoming, 7.1 percent, had the lowest burdens. The U.S. average is 9.9 percent.
NFIB Connecticut director Andrew Markowski said in a statement, “It’s difficult to see rankings like this knowing that since 2012, things have only gotten worse. We may not be ranked the worst based on this study but the data will eventually catch up to reality and when it does, we will have nowhere left to fall,”
The Tax Foundation said in its report during the 2012 fiscal year, state-local tax burdens as a share of state incomes decreased on average across the U.S. Average income increased at a faster rate than tax collections, driving down state-local tax burdens on average.
Connecticut officials have criticized the foundation’s methodology in the past.
