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State Taxes at a Glance
from:State taxes are enforced contributions levied upon individuals by their state of residence. Except for Alaska, Washington, Nevada, Wyoming, South Dakota, Texas and Florida, every state in the union imposes a state tax in the form of a percentage to a resident's income. These percentage rates can vary from the highest at 9.5% for Vermont residents to a low of 3% for residents of Illinois. States such as Tennessee and New Hampshire only allow a state tax on interest and dividend income. State taxes are collected annually and are combined with other forms of direct and indirect tax contributions to pay for state facilities, programs and services.
The majority of states apply a tax rate to incomes on a progressive scale. The larger a resident's income, the more tax they will pay. While a lack of state taxes can sound promising, those not enforcing this type of tax generally obtain their revenues elsewhere, often through sales or excise taxes. Purchasing goods or cigarettes and alcohol tend to be higher in states such as Washington than they are in North Carolina. There is much debate as to the benefits of this type of taxation as it can be a plus or minus for both individuals and businesses. States such as Nevada obtain proceeds by means of their renowned gambling industry.
When and where warranted, state taxes are filed annually with federal taxes. Because tax laws vary from state to state, each will have their own type of tax forms. Like federal returns, taxpayers can opt for a long form or a short form. Individuals and businesses with more complex tax returns usually rely on the services of a professional tax preparer. This is especially true when businesses or individuals divide their time or make income in multiple states. While these forms are widely available in places such as post offices and libraries, now more than ever taxpayers file their federal and state taxes online.
Unless one applies for an extension, state taxes are filed every year by a certain date in the month of April. While it can vary from state to state, individuals in the military or those who fall under certain income guidelines are the only ones who may not be required to file. It is best to always obtain the advice of a tax professional when questions about federal or state taxes arise. The penalties with accruals that come with failure to file or file correctly based on deceptive or frivolous intent can make for a most uncomfortable situation. In worst case scenarios and offenses, individuals can face imprisonment.
Payroll Tax News
Obama to Link Tax Plan, Hiring - Wall Street Journal
 Washington Post | Obama to Link Tax Plan, Hiring Wall Street Journal who is in a tough re-election fight, is urging an extension and expansion of a payroll tax cut for small firms hiring new workers. ... Wonkbook: White House considers payroll tax holiday; House libs against Social ... Dems have few options on economy Administration's September Rollout: Big Payroll Tax Cut |
Obama to propose new incentives to spur employment - Los Angeles Times
Obama to propose new incentives to spur employment Los Angeles Times One idea that has received some support from Republicans is a three-month payroll tax holiday for all workers and businesses. That would amount to a 6.2% ... Pressure intensifies on Obama as jobless rate ticks higher |
Does Real Tax Reform Begin With a Payroll Tax Holiday? - The Atlantic (blog)
 TPMDC (blog) | Does Real Tax Reform Begin With a Payroll Tax Holiday? The Atlantic (blog) The payroll tax skims about 15 percent off wages and compensation to pay for Social Security and Medicare. A holiday would be akin to a tax cut about about ... Is a Payroll Tax Holiday a Good Idea? Baker: Mixed Reviews For White House Economic Recovery Plan |
Unemployment Rate Rises to 9.6 Percent - The Washington Independent
Unemployment Rate Rises to 9.6 Percent The Washington Independent The administration is reportedly considering pushing for a payroll tax holiday. The tax cut would be temporary, to encourage businesses to hire quickly to ... Unemployment rate rises, in sign of weak growth Not Enough Labor Day August Job Numbers Show Economy Still in a Funk |
Are More Tax Cuts On The Way? - NPR (blog)
 CBS News | Are More Tax Cuts On The Way? NPR (blog) A simpler approach — but a less targeted one — would temporarily cut the payroll tax, which finances Social Security and Medicare and is paid by both ... Tax Cuts Weighed To Propel Growth White House Might Want to Give You a Tax Cut More Dems buck plan to let taxes increase for rich |