How Connecticut ranks in tax revenues compared to other states

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Only New York surpassed Connecticut in per-person state income tax revenue in a U.S. Census comparison among all the states.

The Census recently released its 2014 Annual Survey of State Government Tax Collections which examines receipts in a number of tax categories. After adjusting for population, the data showed that Connecticut collected about $2,340 in income tax revenue per person. New York took in about $2,400.

After adding in property, sales, licensing, and other taxes, Connecticut fell to fourth among the states in revenue at about $4,400 a person, behind North Dakota, Vermont, and Alaska.

In terms of total tax dollars, Connecticut generated about $16 billion. More than half of that came from income taxes. At $8 billion, Connecticut was 8th out of all other states in total income tax revenue.

What do you think?

  • Joseph Brzezinski

    Does a study exist that would provide local government revenues for the same time period? In particular, CT has no property tax revenue while other states do. If you cannot add local revenue, is there a way to offset the property taxes included in other states by those states’ local expenditures. Then where would CT rank relative to other states?

    • EEisenlohr

      Key question, Joe. Essential in comparing state economies to their debt burdens, too. CA lets their towns go bankrupt, but CT can and has prevented this. It will affect comparisons.

      • Joseph Brzezinski

        The article provides visualizations from the census bureau survey of state revenues, so I was looking from that perspective. With Property Tax as a prominent part of the analysis, I anticipate that CT’s government — Sharky, Looney, And Malloy along with all the tax and spend Democrats, will see the $0 for CT while other states get substantial property tax revenue is ample reason for a statewide property tax! The car tax “relief” is the proverbial foot in the door for such property taxation!
        Yes, some evaluation of state economies is needed BUT that needs inclusion of revenue, expenditures, assets, and liabilities. While debt levels are important, they are not the only key element of the health of state economies.

        • EEisenlohr

          The article was a good look at the state level revenues. Note that corporate taxation provides such a small percentage. Taxing corporations more makes doing business here even more expensive, but helps the state revenue line very little.

          The debt picture isn’t the only measure of the health of the economy. But it is essential to the health of the state as a place to live. We share that asset — the ability to borrow. Lenders want to know they will be paid back. When the state is viewed as a riskier borrower, the cost of borrowing will go up and crowd out other types of spending. That is a concept few find pleasant to think about.

          The ability to service the debt burden ultimately comes from private sector jobs. Private sector jobs provide income to pay state taxes, both income and even sales tax — taxes that fund public sector jobs and benefits. Connecticut leveraged up its Wall-Street-employed residents’ income. The bubble burst, and measures to control systemic risk, while controversial and perhaps even limited in their effect, have certainly hit Wall Street incomes. The state continues to spend as if there will always be a rich person somewhere who will dig us out of a financial/fiscal hole. Taxing the rich is another controversial issue, but we need to see that our state budgeting strategy rests on an assumption that may be shaky.

  • Lori Hopkins-Cavanagh

    The Democrats are in bed with corporate special interests and the middle class and working poor bear the unbearable burden of CT’s redistribution machine. While the state’s inner cities are being flooded with illegals and sucking the life out of the taxpayer, the middle class, working poor and elderly are looking for greener pastures. Connecticut has never recovered from the great recession caused by poor public policy and socialized housing initiatives. Foreclosures are flooding the market, small businesses are closing their doors and we are witnessing the first Communist State in the U.S. rising from the embers of the Constitution State burnt to a crisp by liberal progressive lawmakers. All this in the land of plenty. Plenty of corruption.