Forty-four of 50 US states worsen inequality with ‘upside-down’ taxes

New research found that poorest fifth pay a tax rate 60% higher, on average, than the top 1% of households

A total of 44 of the 50 US states worsen inequality by making the wealthy pay a lesser share of their income in taxes than lower income people, a new analysis has found.

State and local tax regimes are “upside-down”, the new research finds, with weak or non-existent personal income taxes in many states allowing richer Americans to avoid tax. A reliance on sales and excise taxes, considered regressive because they disproportionately impact the poor, has helped fuel this inequality, according to the report.