Tax News: Good to Be Tied to Arkansas in This Case

Interesting numbers from the Tax Foundation, which is in the business of analyzing interesting (tax) numbers. Its annual review of what states did with their tax policies included some strong praise for Indiana. A few excerpts from the release and a link to the full study, which takes some to task for targeted tax hikes and accounting gimmicks (instead of reducing spending).

Nine states increased individual income tax rates (five states reduced their rates), six states raised general sales tax rates, 17 states increased excise taxes on cigarettes and five states increased rates of alcohol excise taxes.
 
“Two states – Arkansas and Indiana – managed to roll back spending growth commitments and take actions to limit spending, but other states have either kicked the budget can down the road or increased taxes,” said Tax Foundation Director of State Projects Joseph Henchman, who authored Tax Foundation Fiscal Fact No. 204, “A Review of Significant State Tax Changes During 2009.”  

“With state revenues declining due to the tough economic situation, most state leaders in 2009 have tapped high-income earners, smokers, out-of-state business transactions, or other targeted groups, those being the only people that politicians feel safe raising taxes on,” Henchman notes. 

California, Connecticut, Delaware, Hawaii, New Jersey, New York, North Carolina, Oregon and Wisconsin increased individual income tax rates. States that increased sales taxes include California, Massachusetts, Minnesota, Nevada, North Carolina and the District of Columbia.
 
Other miscellaneous tax changes in 2009 include obesity and soda taxes, excise taxes on plastic bags (often mischaracterized as “fees”) and “Amazon” taxes, which force out-of-state retailers to collect sales taxes from customers if the companies have affiliate and advertising relationships with in-state businesses.

Inside the Uninsured Numbers

What do we know about the health care uninsureds in our country? That there are somewhere around 46 million people in this category, the national total is slightly over 16% and Indiana’s percentage is nearly the same.

Gallup, the polling people, have some more numbers. Their recent surveys tell us there are more uninsured in Texas, New Mexico and Mississippi (between 24% and 27% in each state) and the lowest totals are in Massachusetts (5.5% with its "universal" coverage), and Vermont, Minnesota and Hawaii (all in the 8.5% range). The Gallup results also show regional trends — lower numbers of uninsured in the Northeast and higher figures in the South and West. They link varying amounts of Hispanic populations as one of the reasons for the difference.

But there are more numbers that should not be forgotten: 45% of the uninsured are in that status for less than four months and only 16% are uninsured for more than 18 months. According to the Heritage Foundation, 20 million are in households with incomes more than twice the poverty level, approximately nine million are on Medicaid and nearly as many are illegal immigrants. The problem, experts say, is the lack of portability in insurance (those who change jobs often go in and out of the uninsured count). Policy changes regarding tax treatment and portability would be a huge first step in the right direction.

The point: Yes, the many Americans without insurance is a problem and part of the health care reform debate, but take a closer look at the numbers before forming your opinion on what needs to take place. 

Cheer Up, Indiana: Hoosiers Rank Low in Well-Being Poll

Gallup just released a poll ranking the well-being of America’s 50 states (see criteria below). Good news for those in Utah, who ranked number one, but the news was a little more stark for Hoosiers, as we ranked 45th. On the upside, there are five states even more disgruntled than we are.

Like many reading this, I’m quite interested in public policy, so I looked to see if states with any particular political leanings tended to rank higher than others. Perhaps I could adopt that ideology and become a less angry person, as I’d imagine that to be much cheaper than therapy. But alas, that proved fruitless as I noticed Utah, which is quite conservative, was No. 1; Hawaii, which skews liberal, was No. 2; and Colorado, which was recently labelled as the 2nd most libertarian state in another poll I saw, was No. 4. (Gees, don’t you hate when you actually have to think about things and not just rest on partisan dogmas.)

At any rate, here’s some info from Gallup:

Mapping well-being scores across the country, a clear pattern emerges with higher well-being states located primarily in the West and lower well-being states clustered in the Midwest and the South. Standing out among its high-ranking western counterparts is Nevada, with a slightly below average well-being score and a rank of 38th. Also defying the overarching geographic pattern of well-being are Maryland and Massachusetts, the only two states in the Northeast to rank in the top 10…

Results are based on telephone interviews with more than 350,000 national adults, aged 18 and older, conducted in 2008 as part of Gallup Poll Daily tracking. For results based on the total sample of national adults, one can say with 95% confidence that the maximum margin of sampling error is ±1 percentage point.

Here is the Indiana breakdown for each criteria they used (rank is out of 50 states, with 1 being the best):

  • Well-being: 45
  • Life evaluation: 42
  • Work quality: 45
  • Basic access (to necessities): 29
  • Healthy behavior: 48
  • Physical health: 35
  • Emotional health: 43

Also, this site can tell you how happy your Congressional district is. 

While there is much to be done, the good news is: Indiana has picked up momentum and a national reputation as one of the most business-friendly states in the country, and some economists have claimed Indiana, and its citizens, could be some of the first to emerge once the recession ends.