Monday, April 12, 2010

Who Pays and How Much?

Before You File Your Taxes Take a Look at the Facts.

Nearly HALF (about 47%) of U.S. households escape FEDERAL income tax.

• That’s because either their incomes are too low or they qualify for enough credits, deductions and exemptions to eliminate their federal tax liability.

Less than 1% of FEDERAL tax returns (the wealthiest) account for about 35% of the income tax revenue

• Top 10% of STATE taxpayers pay more than 50% of state income taxes.
• About 14% of STATE tax returns show adjusted gross income over $100,000, and they account for about 60% of Virginia STATE income tax revenue.

Virginia's STATE income tax filing threshold is gradually increasing, and will be about $12,000 in 2012 (about $24,000 for married filing jointly).

• Increasing thresholds mean many more Virginians on the low-income end pay NO Virginia income tax.

By many measures, Virginia is a relatively low tax, business friendly state, which helps to translate into more jobs and larger tax bases.

Virginia also is one of the best managed states, which is a decent indicator that public services are provided efficiently at relatively high levels. A recent ranking by the Council on State Taxation on the degree to which states provide a fair, efficient and customer-focused administration of taxes, ranks Virginia tied for second place with four other states

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