FACTS ABOUT INDIVIDUAL INCOME TAX Sources of Revenue

FACTS ABOUT INDIVIDUAL INCOME TAX

Sources of Revenue, 2017 Tax Amount % of Total General Sales, including Motor Vehicles $4, 298. 1 35. 7% Individual Income $3, 088. 3 25. 7% $510. 4 4. 2% Tobacco, Beer, liquor $464. 6 $381. 3 3. 9% 3. 1% Gasoline and Special Fuels $624. 1 5. 2% Gaming $906. 6 7. 5% Excise License Tax $858. 6 7. 1% Others $900. 1 7. 5% Total $12, 032. 1 100. 0% UAL Obligations $1, 635. 0 Total less UAL $10, 397. 1 Corporate Income and Franchise Severance and Mineral Revenues 86. 4% of total

Taxes Paid to Own State Per Capita 1992 2007 2012 $4 000 $3 500 $3 000 $2 500 $2 000 $1 500 $1 000 $500 $0 TN MS LA SC AL TX KY GA WV FL AR NC VA Tax Foundation

Individual Income Tax

Exemption/Credi t 2014 2015 % of all Exemptions/Cre dits Fed. Tax Deduct $812. 4 $912. 7 40. 4% Excess Itemized $345. 8 $351. 8 15. 6% PE/SD 247. 9 $249. 1 11. 0% Retirement $171. 9 $183. 4 8. 1% Film Credits $114. 9 $135. 8 6. 0% Net Income Paid to Other States $86. 1 $108. 9 4. 8% Net Capital Appreciation $57. 3 $51. 8 2. 3% EITC $47. 8 $47. 5 2. 1% LA Citizens $41. 3 $47. 5 2. 1% Wind and Solar $31. 7 $38. 1 1. 7% Historic Tax $26. 5 $38. 4 1. 7% All Others $115. 5 $92. 9 Total $2, 099. 1 $2, 257. 9 4. 1% 100. 0%

SD/PE, Married Filing Jointly SC MS AL LA NC VA GA KY AR WV $0 $5 000 $10 000 $15 000 $20 000 $25 000

Exemptions, Credits, etc. State Federal Tax Deduction Excess Itemized Deduction Retirement State/federal Retirement Earned Income Tax Credit LA yes Up to $6, 000 yes AL yes limits All defined benefits plans yes no AR no Up to $6, 000 no GA no Up to $65, 000 no KY no MS no NC no SC no Up to $10, 000 at age 65 VA no Up to $12, 000 WV no Cannot deduct state taxes No Up to $41, 110 yes no Up to $2, 000 Up to $4, 000 no Up to $16, 000 joint returns yes no Yes, nonrefundable no

Income tax rankings, Tax Foundation, 2015 State Ranking, income tax collections per capita Actual income tax collections per capita AL 36 $664 AR 25 $897 GA 27 $881 KY 29 $849 LA 39 $594 MS 40 $587 NC 15 $1, 130 SC 35 $707 VA 8 $1, 326 WV 23 $968

Distributional Issues • Asked Institute on Taxation and Economic Policy to estimate distributional affects on different income brackets if we make following changes • Am working with Postlewaite and Netterville on individual comparisons