A group of professors recently released a study that finds insufficient discussion of the total cost of taxes in public finance textbooks. They find that common textbooks fail to fully include the total cost of taxes...
- Orange County Register quotes Scott Drenkard on local sal...
Orange County Register quotes Scott Drenkard on local sales taxes
California has highest sales tax in the U.S.
By JAN NORMAN / ORANGE COUNTY REGISTER
Even though California's statewide sales tax declined in June with the expiration of a temporary 1% tax, the Golden State still has the highest statewide sales tax in the country at 7.25%, according to data from the Tax Foundation, a Washington D.C. nonpartisan fiscal research group that favors low taxes. When combined with locally imposed sales taxes averaging 0.86%, California drops to 12th in combined sales tax that consumers pay on most purchases.
"While state sales taxes are generally easier to understand than the federal income tax system, the existence of thousands of local jurisdictions that set their own rates can lead to confusion," said Tax Foundation economist Scott Drenkard. "States with a moderate statewide rate can end up with an extremely high burden when local rates are added to the total."
- 45 states collect statewide sales taxes.
- 38 states collect local sales taxes.
- The five states with the highest average combined state-local sales tax rates are Tennessee (9.45...
NOTE: Massachusetts approved a sales tax holiday after press time, bringing the total number of states with a holiday this year to 17. ...
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