Tax Foundation: R.I. ninth-highest state-local tax burden in U.S.

RHODE ISLAND had the ninth-highest state-local tax burden in the country in fiscal 2012, according to the Tax Foundation. / COURTESY TAX FOUNDATION
RHODE ISLAND had the ninth-highest state-local tax burden in the country in fiscal 2012, according to the Tax Foundation. / COURTESY TAX FOUNDATION

PROVIDENCE – Rhode Islanders face the ninth-highest state and local tax burden in the country, with 10.8 percent of their income going to taxes, according to a report released Wednesday by the Tax Foundation.
Results are based on fiscal year 2012, according to the organization, which said that state-local tax burdens as a share of state incomes decreased on average across the country in that fiscal year. It said average income increased at a faster rate than tax collections, driving down state-local tax burdens on average.
Still, the amount of taxes paid to Rhode Island total $3,476, and amount paid to other states total $1,522, for a total of $4,998 based on per capita income of $46,359.
Rhode Island had the eighth-highest state and local tax burden in the Tax Foundation’s list a year ago, which itself was an improvement on the No. 6 ranking in 2014.
“Our study gives taxpayers a comprehensive look at where tax burdens are felt across the states, so that they can have an informed discussion on the size and reach of state and local taxes,” Tax Foundation Economist Nicole Kaeding said in a statement.
New Yorkers had the highest tax burden with 12.7 percent of income going to state and local taxes, followed by Connecticut and New Jersey, at 12.6 percent and 12.2 percent, respectively. Alaska, South Dakota and Wyoming had the lowest burdens at 6.5 percent, and 7.1 percent each, respectively.
The national average was 9.9 percent, the foundation said.
The foundation said that on average, taxpayers pay the most taxes to their own state and local governments. In 2012, 78 percent of taxes collected were paid within the state of residence, an increase from 73 percent the year before.

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