Study: Taxpayers need to pay thousands each year to cover state worker benefits


By Sam Foster

Remember when Scott Walker was Hitler?

A new study finds that on average, households need to shell out an additional $1,398 per year in taxes for 30 years just to cover state employee benefits.

American taxpayers would have to pay anywhere from $329 to $2,475 annually per household for 30 years, depending on what state they live in, to remedy the crises in their public employee pensions, a new study said Wednesday.

Taxpayers in New Jersey, New York, Oregon, Wyoming, Ohio and California would face the highest tax increases to fully fund their state's pension obligations, assuming no policy changes, the researchers said.

For example, New Jersey households would have to pay $2,475 annually for 30 years, the highest.

The lowest increase would be for Indiana households, which would have to pay $329 annually for 30 years to fully fund their public employee pensions, the researchers said.

Below is how much households in the 10 highest and lowest states would have to pay in increased taxes annually for 30 years to solve the funding crisis in their state and local public pension plans:

New Jersey $2,475
New York $2,250
Oregon $2,140
Wyoming $2,080
Ohio $2,051
California $1,994
Minnesota $1,928
Illinois $1,907
New Mexico $1,756
Colorado $1,739
Georgia $803
North Carolina $784
South Dakota $776
Maine $761
Idaho $737
Arizona $608
West Virginia $600
Utah $538
Arkansas $534
Indiana $329

Nationally, the average increase for households would be $1,398 annually for 30 years, said Rauh, an associate professor of finance.

Notice blue states top the list of most owed and red states top the list for least owed.

1 comment:

  1. "Notice blue states top the list of most owed and red states top the list for least owed."
    Significant point that needs coverage...


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