Interview: Tax Foundation Sees North Dakota As One Of The States Hardest Hit By “Fiscal Cliff” Tax Hikes
The Tax Foundation put out a report recently which ranked North Dakota in the top ten in terms of states hardest hit by potential tax hikes coming out of the “fiscal cliff” negotiations. The report found the median household in North Dakota facing the possibility of $4,825 in increased tax burdens, working out to 5.68% of household income.
I interviewed Nick Kasprak, the analyst from the Tax Foundation who put together the report, and he broke down in detail how the Tax Foundation arrived at this number.
Kasprak noted that North Dakotans would be about evenly impact by the AMT tax, the expiration of the Bush tax cuts (which, contrary to popular liberal talking points, were never just “for the rich”) and the expiration of the payroll tax reductions.
He also pointed out that even if Obama’s plan to let the Bush tax cuts expire only for those making over $250,000/year that would still impact 3% of North Dakota households, but given how many of those households are likely business owners reporting their income on individual returns (that’s been the trend, according to Kasprak) there would be a larger hit to the employees and vendors who work with all those businesses.
Put simply, there’s no potential tax increase coming out of the “fiscal cliff” debate that wouldn’t hurt North Dakota.
Kasprak said that if taxpayers want to see how the various tax outcomes of the “fiscal cliff” might impact them, they can use the Tax Foundation’s tax burden calculator.Tags: bush tax cuts, fiscal cliff, North Dakota News, tax foundation, Taxes