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Pennsylvania’s Regressive Tax Policy – 2015 Update

The fifth edition of the report Who Pays?: A Distributional Analysis of the Tax Systems in All Fifty States places Pennsylvania on the “Terrible 10” list of states with the most regressive tax systems for the fifth time, and lowers its rank from eighth worst in the nation two years ago to sixth worst now. The report factored in all major state and local taxes, including personal and corporate income taxes, property taxes, sales taxes, and other excise taxes paid by non-elderly residents.

Washington State is the most regressive, followed by Florida, Texas, South Dakota, Illinois, Pennsylvania, Tennessee, Arizona, Kansas and Indiana.
Pennsylvanians in the top 1 percent of income actually saw a slight drop in the share of income they pay in taxes, from 4.4 percent in 2013 to 4.2 percent in 2015.

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