States that tax the poor people the most

[Blacknbengal]

In an effort to help families work their way out of poverty, most of the United States do not tax the incomes of working-poor families. A handful of states do, however. 24/7 Wall St. examined a new report from the Center on Budget and Policy Priorities to identify the states that tax the poor the most.

The decision of these states to continue taxing the poor is notable because most states have stopped. Over the past two decades, there has been a widespread, bipartisan effort to roll back taxes on working-poor families. Today, only 15 states still tax families with incomes that are at, or below, the federal poverty line -- currently $23,018.

These five states tax the poor the most.

1. Alabama

Income tax on working-poor: $548/yr.
Lowest taxable income: $12,600 (55 percent of poverty line)
Poverty rate: 17.4 percent (7th highest)
Median household income: $40,474 (5th lowest)

Alabama is one of the country’s poorest states, and it taxes its poor residents’ incomes the most. The state has a poverty rate of 17.4 percent, which is among the nation’s highest. It also has the fifth-lowest median household income. A family of four at the poverty line must pay $548 in income taxes. This amount has consistently increased since 1994. Additionally, Alabama has the second-lowest tax threshold in the country. A single-parent family of three making $9,800 -- or 55 percent of the group’s poverty level of $17,922 -- remains subject to income tax.

http://bottomline.msnbc.msn.com/_news/2012/05/02/11230462-states-taxing-the-poor-most