State Tax Systems Can Be Important Part of Safety Net

Research Report

State Tax Systems Can Be Important Part of Safety Net

May 21, 2012

Abstract

Taxes and transfers at the state and federal level can have a large impact on the well-being of low-income families. How large a role states play varies, as demonstrated by the Urban Institutes recently released Net Income Change Calculator (http://nicc.urban.org). In twelve states, state taxes account for over 10 percent of total support and in others, state income taxes provide no support.

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