Income tax burden shifts to Virginia’s wealthy
If you earn more than $100,000 and you live in Virginia, you’re likely paying more income taxes then you did 12 years ago.
Three-figure earners grew by 7 percentage points from 1998 to 2007. But the percentage of taxes they paid grew by 17 points.
Those at the lower rungs of the income ladder saw a smaller shift in the opposite direction. Earners below $50,000 shrunk by 10 percentage points, but their contribution to the tax burden decreased by 11 points. And due to the 2004 and 2007 tax reforms, married couples could earn up to $23,300–instead of just $8,000–before they had to pay taxes.
But I must also point out that, due to sales and use taxes, lower-income earners are still paying a smaller percentage of their income in taxes than higher-income earners: 6.9 percent compared to 8.8 percent, at least according to the Institute on Taxation and Economic Policy.
Still, it’s the clear the if the tax burden has expanded anywhere, it’s been onto the backs of the rich, not the poor. It’s the trend of the decade–not just in Virginia, but in lots of other states as well.
Continue reading this post by Paige Winfield Cunningham at Old Dominion Watchdog here.
Paige Winfield Cunningham is an investigative reporter and managing editor at Old Dominion Watchdog . The Local Blog Network is a group of bloggers from around the D.C. region who have agreed to make regular contributions to All Opinions Are Local.
Paige Winfield Cunningham
| July 8, 2010; 2:01 PM ET
Categories: HotTopic, Local blog network, Va. Politics, Virginia, taxes
Save & Share: Previous: When nickel-and-diming isn't enough
Next: What role did politics play in streetcar debate?
Posted by: formerDCPSstudent | July 9, 2010 12:40 PM | Report abuse
Posted by: jody43jody | July 11, 2010 7:25 AM | Report abuse
The comments to this entry are closed.