The Impact of State Income Taxes on Low-Income Families in 2005

Posted on March 2, 2006

When it comes to tax treatment of the poor, not all states are doing the same job. A new study from Center on Budget and Policy Priorities finds that in nearly half of U.S. states with an income tax, a family of four earning below the poverty line still owes taxes. In fact, the number of states that tax poor families of four increased from 17 to 19 in 2005. At the same time, some states are making strides in expanding Earned Income Tax Credits or raising the income tax threshold for families. Check the state-by-state fact sheets to see where your state stands.