Flip It To Fix It
A new report by United for a Fair Economy looks at the tax structures of states and offers solutions for revenue shortfalls. Because every state has a regressive tax structure, the study examines the benefits of changing to a progressive model. A direct inversion to a progressive structure is presented here.
Currently, the lowest 20% of income earners in Missouri pay 9.6% of their income in state and local taxes while the top 20% pay 6.7%. See state specific information here. Flipping those rates would raise an additional $4,278,926,329 for Missouri, eliminating our deficit and funding basic services.
Key findings of the report:
- Every state has a regressive tax structure that would benefit significantly from a direct inversion into a progressive structure.
- An inverted tax structure for every state would raise a combined $490 billion in new revenue, immediately eliminating state budget deficits.
- A cuts-only approach to state budget deficits is shortsighted—imposing immediate harm on families, while dampening economic recovery and compromising the future competitiveness of the American workforce.
- A progressive tax structure provides commonsense equity, economic efficiency, and adequate revenue to invest in communities and spur economic growth.
The report and Missouri-specific data are embedded below the jump.
To achieve an inverted, progressive structure, states must establish or improve upon the graduated personal income tax while reducing reliance at the state and local level on regressive sales, property, and excise taxes.
