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April 01, 2013 at 05:48 AM
Taxes are a necessary part of life. After all, what kind of society would we have without taxes? A volunteer police force? Firemen who devote their spare time to fighting fires? Obviously, we need to pay taxes so government can provide essential services.
But sometimes government reaches a bit far in its quest to find revenue. Since the 20th century, we’ve seen the size of government increase substantially and taxes have followed suit. In this post, we’ll take a look at a few of the more esoteric sources of government revenue.
Hello….Operator!
One of the most prolific technological advances in recent years has occurred in the smart phone industry, a fact that hasn’t escaped the watchful eye of our political leaders. As a result, states and many localities levy a tax on wireless services. The 10 states with the highest state and local tax rates are:
The Highest Wireless Levies
| Nebraska |
18.67% |
| Washington |
18.62% |
| New York |
17.85% |
| Florida |
16.59% |
| Illinois |
15.94% |
| Rhode Island |
14.58% |
| Missouri |
14.29% |
| Pennsylvania |
14.13% |
| South Dakota |
13.13% |
| Kansas |
13.11% |
The Lowest Wireless Levies
| Oregon |
1.85% |
| Nevada |
2.13% |
| Idaho |
2.28% |
| Montana |
6.09% |
| Delaware |
6.28% |
Note: This tax rate is calculated by averaging the tax in the largest city and the capital city. The data is as of July 1, 2012. The average for all states is 10.12%.
Scratch This!
If you have been, or ever will be a winner of a lottery, you’ll have to pay more than income tax on your winnings. In fact, each state keeps a portion of the winnings, outside the normal income taxes paid. The states with the highest “implicit lottery tax revenue per capita” as of fiscal year 2011 are: Delaware; Rhode Island; West Virginia; Oregon; New York; Massachusetts; South Dakota; New Jersey; Georgia, and Connecticut.
