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Interstate Differences in Individual Income Taxes

Interstate Differences in Individual Income Taxes

Abstract

Income taxes vary significantly across states. Typical measures of these varia-tions utilize aggregate measures, such as per capita taxes or taxes per thousand dollars of income. In this article the income tax systems, as opposed to the taxes paid, are described and compared for the various states. It is demonstrated that the diversity in the treatment of individuals for income tax purposes is vast. We propose that analysis of state taxation and its effect on individuals and businesses be conducted on a disaggregated basis.
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