The growth of regressive taxes
There is no national sales tax. Yet most of us pay a sales tax little every day. Regressive tax is one of two main sources of revenue for most states. consumption taxes are also important sources of income. Since two types of taxes on consumption, their impact is relatively more severe on the poor and middle class.
In Texas, almost 80% of tax revenue is generated from sales and excise. This is more than 20 billion dollars! However, the Statefaster growth of government revenue is the game the most insidious and casinos and lotteries. Only 15 years ago, New Jersey and Nevada were the only states that allow gambling legalized. There are currently 49 states where some form of gambling is legal and each year the state legislatures to approve new forms.
Texas does not have casinos. Yet today the ranks of the lottery with the tax advantage as the fourth largest state is the source of income '. In 2003, the proceeds of lotteries accounted for 1.4 billionbillion. The Texas legislature has entertained bills to legalize casino gambling in the state. casino were to open here, the proceeds of gaming revenue will increase dramatically.
In Connecticut, revenues game just after the income tax that the third state, the main source of income. The payroll tax is regressive taking a larger share of federal revenue. social security benefits for workers with wages funds for their first $ 87.900. Withthe significant decrease of rates rather than income tax since 2001, the importance of social security has increased dramatically. Since 2000, payroll taxes increased from 32.2% to 40.0% of federal revenue.