BLOG ARCHIVESBLOG ARCHIVES
VIEW OUR APPSVIEW OUR APPS

In today's fast moving world, keeping informed on the public policies that impact your personal or work life is a daunting task. Fortunately, technology can aid in that effort and that is the ultimate purpose of Key Policy Data.

 

We accomplish this goal with the help of the innovative Qlikview data visualization and discovery program. Qlikview allows us to post huge amounts of data without sacrificing usability.  For instance, our state and county tax burden app can quickly show you how your state's tax burden ranks and how it has changed over time with just a few clicks of a button.

 

We hope that you find the information on Key Policy Data useful and we simply request that you share this website with your friends and family. Additionally, be sure to sign up for our mailing list to make sure you don't miss any of our analysis on the important public policy issues impacting your state.

BLOG ARCHIVESBLOG ARCHIVES
Comments

Category: Tax Burdens


In Fiscal Year (FY) 2015, Alaska collected $1.6 billion in state and local taxes (net of Permanent Fund Distributions). While this is an impressive sum of money, it tells us little about whether or not the Alaskan taxpayers can afford this level of taxation.

 

 

Click here to view tax burden data by state, type of tax, and for years 1950 to 2015

 

First, as shown in Chart 1, Alaska’s state and local tax burden (tax collections divided by private sector personal income) was the lowest in the nation for 2015 at 6.2 percent—or -57 percent below the national average of 14.4 percent.

 

Chart 1 Alaska State and Local Tax Burden FY 2015.jpg

 

#Alaska #taxburden in FY 2015 was the lowest in the nation at 6.2%— -57% below national average of 14.4% (click to tweet)

 

As shown in Chart 2, the tax burden has declined over time by -36 percent to 6.2 percent in FY 2015 from 9.7 percent in FY 1959 (when Alaska joined the United States as a state). Alaska depends critically on severance taxes which have dropped precipitously—falling 98 percent since 2012 to $105 million from $5.8 billion.

 

Chart 2 Alaska Tax Burden by Type of Tax FY 1959 to 2015.jpg

 

#Alaska #taxburden has declined -36 percent between FY 1959 to 2015 to 6.2% from 9.7% (click to tweet)

 

Click here to view tax burden data by state, type of tax, and for years 1950 to 2015



 

As shown in Chart 3, Alaska’s 6.2 percent tax burden is greater than these combined industries: Finance and Insurance (2.4 percent), Information (2.1 percent), Arts, Entertainment, and Recreation (0.7 percent), Educational Services (0.6 percent).

 

Chart 3 Alaska State and Local Tax Burden vs. Major Industry FY 2015.jpg

 

#AK #taxburden = combined industries: finance and insurance, information, arts, and educational services (click to tweet)

 

Alaska’s severance taxes fuel their Permanent Fund enshrined in their constitution in 1976. An annual dividend is paid to every resident in Alaska from the Permanent Fund. Over the years, as shown in Chart 4, the dividend has fluctuated from a low of $331.29 in 1984 to a high of $3,269 in 2008 (including one-time Alaska Resource Rebate). In 2016, the dividend was worth $1,022 for every man, woman and child based on a total disbursement of $758 million.

 

Chart 4 Alaska Permanent Fund Distibutions 1982 to 2016.jpg

 

The existence of the dividend poses an interesting public policy question—should the dividend be considered as the equivalent of a tax reduction? In our analysis, we assume the dividend is a functional tax reduction. This allows better apples-to-apples comparisons with other states’ sovereign wealth funds that put proceeds in the General Fund—which, all else being equal, would lower tax burdens.

 

As such, the dividend payment in 2015, worth 2,072 for every man, woman, and child, reduced state tax collections by $1.5 billion. Note that in years of very high disbursements, state level tax burdens may show as a negative as a result.

 

High severance taxes also pose another problem in that they are generally considered by economist to be fully passed onto the consumer in the form of higher prices. As a result, much of the severance tax burden is actually “exported” to the other 49 states. The tax burden analysis published by the Tax Foundation adjusts for this impact and ranks Alaska as the lowest in the country with a tax burden of 6.5 percent of income.

 

 

Click here to view tax burden data by state, type of tax, and for years 1950 to 2015

 

Finally, don’t forget to watch our exclusive time-lapse video of state and local tax burdens over the last 65 years! See if your state has been above or below the national average?

 

 


View Post

BLOG ARCHIVESBLOG ARCHIVES

 

Check Out Our Unique Apps:

U.S. Capitol.jpg

Government Workforce

Tax Squeeze.jpg

Tax Burden

Strings Attached to Federal Dollars.jpg

Federal Tax and Spend

Hundred Dollar Bill.jpg

Cost of Living (COLI)

Baby.JPG

Demographic

Measuring a Dollar.jpg

Federal Tax & COLI

Retired.jpg

Federal Pension

United States Office of Personnel Management Seal.jpg

Federal Payroll

Check Out All Posts For Your State:

Alabama.jpg  Alabama

Alaska.jpg  Alaska   

Arizona.jpg   Arizona 

Arkansas.jpg  Arkansas

California.jpg  California

Colorado.jpg  Colorado

Connecticut.jpg  Connecticut

 Delaware.jpg  Delaware

Florida.jpg  Florida

 Georgia.jpg  Georgia

Hawaii.jpg  Hawaii

  Idaho.jpg  Idaho

   Illinois.jpg  Illinois

   Indiana.jpg  Indiana

  Iowa.jpg  Iowa

  Kansas.jpg  Kansas

  Kentucky.jpg  Kentucky

   Louisiana.jpg  Louisiana

   Maine.jpg  Maine

  Maryland.jpg  Maryland

Massachusetts.jpg  Massachusetts

Michigan.jpg  Michigan

Minnesota.jpg  Minnesota

  Mississippi.jpg  Mississippi

Missouri.jpg  Missouri

Montana.jpg  Montana

Nebraska.jpg  Nebraska

Nevada.jpg  Nevada

New Hampshire.jpg  New Hampshire

New Jersey.jpg  New Jersey

New Mexico.jpg  New Mexico

New York.jpg  New York

North Carolina.jpg  North Carolina

North Dakota.jpg  North Dakota

Ohio.jpg  Ohio

Oklahoma.jpg  Oklahoma

Oregon.jpg  Oregon

Pennsylvania.jpg  Pennsylvania

Rhode Island.jpg  Rhode Island

South Carolina.jpg  South Carolina

South Dakota.jpg  South Dakota

Tennessee.jpg  Tennessee

Texas.jpg  Texas

Utah.jpg  Utah

Vermont.jpg  Vermont

Virginia.jpg  Virginia

Washington.jpg  Washington

West Virginia.jpg  West Virginia

Wisconsin.jpg  Wisconsin

Wyoming.jpg  Wyoming