- Policy Resources
- News & Analysis
- Your State
Nathan Newman on February 23, 2006 - 8:37am
Every state with a sales tax imposes a tax burden on low-income families, but as a new report details, 19 out of the 42 states with income taxes levy taxes on two-parent families of four with incomes below the poverty line. The report by the Center on Budget and Policy Priorities highlights that some states impose the tax on those in severe poverty.
- In Alabama, families with two children owe income tax when their earnings reach just $4,600.
- Six other states — Hawaii, Indiana, Louisiana, Michigan, Montana, and West Virginia — also tax the incomes of three- or four-person families earning less than three-quarters of the poverty line.