WASHINGTON, D.C. -- Mississippi taxes its middle class at the fourth highest rate in the nation and is in the bottom 10 overall in terms of tax fairness, according to a new study published by financial site WalletHub.
WalletHub analyzed and ranked the 50 states based on the fairness of their state and local tax systems -- including income taxes, sales & excise taxes, and property taxes.
To rank the states, Wallethub conducted a nationally representative online survey of 1,050 individuals to assess what Americans think a fair state and local tax system looks like. Analysts then compared what Americans think is fair to data on the real structure of tax systems in all 50 states.
Mississippi ranked 44th in overall tax fairness. The survey also found the liberals and conservatives in the state have a similar view of the tax system: liberals ranked Mississippi 43rd; conservatives ranked the state 42nd.
WalletHub believes this is the first ever ranking of state and local tax fairness that matches representative data on what Americans think is fair with real data on the structure of state and local tax systems.
Other data from the report:
- The poor are most overtaxed in Washington, Illinois and Florida; the wealthy top 1 percent are most undertaxed in Wyoming, Alaska and South Dakota.
- The middle class is most overtaxed in Arkansas, New York and Hawaii (followed by Mississippi).
- Americans think a fair state and local tax system taxes higher-income households at a higher rate than lower-income households.
- Conservatives and Liberals generally agree on what a fair tax system looks like. However, conservatives are more supportive of slightly higher taxes on the poor and lower taxes on the wealthy.
- Current state and local tax systems are, on average, extremely unfair. While Americans -- liberals and conservatives -- think a progressive tax system is most fair, virtually every state has a regressive state and local tax structure.
- Both "blue" states and "red" states are found to overtax the poor and undertax the rich, relative to what Americans think is fair.
Click here for the entire WalletHub report.