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Lower-Income Earners Pay More State and Local Taxes in Mississippi

June 18th, 2010

Eighty percent (80%) of Mississippi residents earn an income of less than $70,000. While that group makes up 80 percent of earners, they only hold 43 percent of the state’s total income. Conversely, the top 20 percent of earners (with an income over $70,000) hold 57 percent of the state’s income. The state’s regressive tax system exacerbates this income gap by requiring lower-income earners to pay more than their share of taxes.

The figure below shows that the top income group represents 57 percent of the total income in the state but pay 49 percent of state and local taxes. Conversely, the bottom 80 percent of residents hold only 43 percent of the state’s income but pay 51 percent of the state and local taxes.

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Estimated Share of Total Income and Share of State and Local Taxes Paid by Income Group in Mississippi (2007)


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Source:

MEPC analysis of data from the Institute on Taxation and Economic Policy

Sara Miller

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