Tax Foundation: State-by-State Impact of the Fiscal Cliff

Tax Foundation:  How Would the Fiscal Cliff Affect Typical Families in Each State?:

To illustrate the potential impact on typical families, we have used Census and IRS data to estimate income and deductions for the median two-child family in each of the fifty states. We then ran these returns through our online tax calculator under two scenarios — 2011 tax law (chosen because it is the latest year that an AMT patch was in effect), and 2013 law, assuming all Bush-era and Obama tax cuts expire and AMT remains unpatched.

Table 1. Top 10 States
State	2011 Median Family Income	Tax Increase 2011 to 2013	Tax Increase as % of Income	Rank
NJ	$101,682	$6,933	6.82%	1
MD	$106,707	$7,194	6.74%	2
CT	$100,451	$6,653	6.62%	3
MA	$101,523	$6,632	6.53%	4
NH	$97,441	$5,660	5.81%	5
ND	$84,896	$4,825	5.68%	6
WV	$65,403	$3,612	5.52%	7
SD	$72,460	$3,997	5.52%	8
AR	$55,444	$3,056	5.51%	9
MS	$58,047	$3,108	5.36%	10

 

Table 2. Bottom 10 States
State	2011 Median Family Income	Tax Increase 2011 to 2013	Tax Increase as % of Income	Rank
ME	$78,310	$3,489	4.46%	41
IA	$76,777	$3,383	4.41%	42
NE	$75,495	$3,289	4.36%	43
DE	$83,424	$3,622	4.34%	44
CA	$74,122	$3,212	4.33%	45
IL	$79,138	$3,417	4.32%	46
KS	$74,853	$3,227	4.31%	47
CO	$85,027	$3,646	4.29%	48
HI	$82,973	$3,453	4.16%	49
WA	$81,582	$3,362	4.12%	50