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10 States Burdening Their Poor With Taxes

10 States Burdening Their Poor With Taxes
By 

Economics writer

MIAMI, FL - JUNE 17: A general exterior view of American Airlines Arena prior to the Miami Heat hosting the Oklahoma City Thunder in Game Three of the 2012 NBA Finals on June 17, 2012 at American Airlines Arena in Miami, Florida. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Ronald Martinez/Getty Images)
MIAMI, FL - JUNE 17: A general exterior view of American Airlines Arena prior to the Miami Heat hosting the Oklahoma City Thunder in Game Three of the 2012 NBA Finals on June 17, 2012 at American Airlines Arena in Miami, Florida. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Ronald Martinez/Getty Images)

Don't need another reason why it's so good to be rich? We're giving it to you anyway.

State and local governments on average tax the bottom 20 percent of households by income at double the overall tax rate of the top 1 percent, according to a new report from the Institute on Taxation and Economic Policy. That's largely because they tend to rely heavily on sales taxes, which burden the poor more than the rich.

Some states put a much bigger tax burden on the poor than others. Take Texas, for example, where there is no personal income tax at all. There, the poorest 20 percent pay four times the tax rate of the top 1 percent, according to the report.

Check out the states with the most unequal tax codes below:

10. Alabama

States That Tax The Poor The Most

(Hat tip: ThinkProgress.)

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