Sunday, April 27, 2014
Wallet Hub, States with the Best & Worst Taxpayer ROI:
There is an obvious disconnect in the minds of taxpayers between the amount we fork over each April and what we ultimately receive from the government in return. Tax Day is a tangible, painful reminder of our investments in federal, state and local governments, but it’s difficult to discern the government’s precise role in our day-to-day quality of life and overall pursuit of happiness. Perhaps that’s why 52% of people feel they pay too much in taxes and most people think roughly half of their tax dollars are being wasted.
One thing we do know is that taxpayer return on investment varies significantly based on simple geography. Federal income tax rates are uniform across the country, yet some states get far more federal funding than others – as WalletHub recently illustrated in its Federal Government Dependency Report. But federal taxes and funding are only part of the story.
Ideological differences regarding the role of local taxation have resulted in citizens of each state shouldering dramatically different tax burdens. This, of course, begs the question of whether people in high-tax states benefit from correspondingly superior government services or if low-tax states are more efficient. In short, where do taxpayers get the most and least bang for their buck?
WalletHub sought to answer that question by contrasting state and local tax rates to the quality of the services that are funded at those levels, which we separated into six main categories – Infrastructure, Education, Health, Safety, Economy and Pollution – that collectively consist of 27 metrics.
Gov't Services Rank
||District of Columbia
(Hat Tip: The Fiscal Times.)