Hawaii considered to have one of ‘least fair’ tax systems in U.S.

The personal finance website WalletHub has released its annual report on the 2015’s Most & Least Fair State Tax Systems and Hawaii has not fared well.

The state is near the bottom of the 50-state ranking, just above Georgia and Washington.

Because there’s such a diversity in taxation policies across the country, the report looks into which state and local tax systems are considered the most fair by its residents.

The website said the results of a nationally representative survey assessed what Americans think a “fair” state and local tax system looks like. Analysts then ranked the states based on how closely their actual tax systems matched public perception.

One of the key findings is that the poor (bottom 20 percent) are the most overtaxed in Hawaii, Washington state and Illinois. Hawaii is also one of the top 10 states where the middle class (20-40 percent) are the most overtaxed as well.

It’s also one of the states most heavily dependent on sales and excise taxes and the least dependent on property taxes.

Current state and local tax systems are, on average, “extremely unfair,” according to the report. While most Americans of all political persuasions think a progressive tax system is most fair, virtually every state has regressive state and local tax structures.

Besides survey data, other sources used to create the rankings were obtained from the Institute on Taxation and Economic Policy and the U.S. Census Bureau.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s