Pew data shows exception to income tax elimination argument
Published 12:00 am Sunday, July 14, 2024
Want to look at comparative data on state tax revenues and not just listen to what politicians say? How about the state’s financial health? Or Medicaid spending? Or population growth?
Pew Charitable Trusts’ updated “Fiscal 50” web site (www.pewtrusts.org/fiscal50) lets you easily compare key data and trends among the 50 states plus provides useful analyses.
“South Carolina, Florida, and Texas were the fastest-growing states in 2023 while eight states lost population,” comes from one such analysis. It also shows that Mississippi was one of the eight losing population between 2008 and 2023. Related detailed data shows Mississippi losing population in the critical 0-to-4 and 5-to-19 age groups while it shows the others gaining.
Hmmm.
We hear about Florida and Texas all the time with regard to their lack of personal income taxes. So, does South Carolina’s growth prove the argument that we need to eliminate personal income taxes to grow?
“Of its tax sources, South Carolina relies the most on personal income taxes,” Pew reported, “followed by general sales taxes.”
Golly gee. Maybe eliminating income taxes isn’t the magic bullet for growth. (Note: Pew also shows that Mississippi “collects the fourth lowest portion of its tax revenue from personal income taxes, of the (41) states that levy them.” and that’s before the current phase down is complete.)
Here are more data from Pew. South Carolina gets 51.5% of its total revenues from federal sources, 38.9% from state taxes, and the balance from service charges and miscellaneous sources.
Medicaid spending factors into that federal percentage. South Carolina Medicaid spending was right at the national average. While the state has not expanded Medicaid, due to a waiver approved in 2019, parents and caretakers of minor children are eligible for Medicaid with incomes up to 100% of the poverty level.
Comparative data for Mississippi, shows the state “relies the most on general sales taxes, followed by personal income taxes;” gets 45.2% of total revenues from federal sources, 40% from state taxes, and the balance from service charges, miscellaneous sources, and local funds; and is noticeably below the national average for Medicaid spending.
All the above data was easily found at Pew’s Fiscal 50 web site on a smart phone. There is much more available.
Pew expects the web site to help policymakers “access and understand the drivers of long-term budgetary trends.” It will also help voters find data easily so they can hold policymakers accountable.
Crawford is a syndicated columnist from Jackson.