Why do the middle class and poor pay more than the wealthiest?

Since this is April 15th, I thought I would share a message I received today that talks about the unfairness of the tax system in Connecticut.  Here is from the e-mail I received:

Attached is a new report from Connecticut Voices for Children that finds that Connecticut’s wealthiest residents pay much less of their income in state and local taxes than do the state’s middle-income and poor families.  After federal income tax deductions for state income and property taxes, the wealthiest 1% of Connecticut’s families (with average income in 2007 of $4.2 million) paid only 4.5% of their income in state and local taxes.  This was less than half the share of income paid in these taxes by the state’s middle-income families (9.3% of their average income of $55,000) and the poorest 20% of families (12.1% of their average income of $12,200).

Low- and middle-income families pay a relatively larger share of their income in sales and property taxes, while higher income families pay a larger share of their income in income tax.  In total, however, the state’s wealthiest families pay a much smaller share of their income in state and local taxes than do its middle and lower income families.  . . .

Michael Sullivan

Director of Communications

Connecticut Voices for Children

Here is the most important part of the report this message talks about (click on the photos to see the larger size):

Middle class families pay twice the tax rate of the wealthiest 1% in our state, and the poor pay even higher.  Why should the middle class and poor pay more so that the wealthiest can enjoy these large breaks?  It is just not fair.

That is why property tax reform is so important.  Had the major reform approved by the legislature two years ago, now, been signed into law we would be on our way to a fairer system, with lower taxes for people in cities like New Britain.  The state would have also been in a much better position to weather the current economic storm.