As a steward of its residents’ tax dollars, Hawaii was at the bottom of the heap. Here’s how the report explains it:
Coming in dead last in terms of the value of its residents’ tax dollars is the state of Hawaii, which is the only state whose residents pay more in taxes per capita than state and local governments spend. Negative bang for their bucks, as it were. Revenue collected from individual taxpayers ranks sixth in the nation, while revenue from corporate income taxes ranks 45th. Taxes in Hawaii make up 51.79% of all government revenues (seventh highest in the nation). While government expenditures on infrastructure and facilities is considerable, residents still pay on average more than the value of services received.
Here are the numbers:
Per capita tax: $6,942.53
*In this post, “per capita tax” refers to the sum total of state income tax, sales tax, property tax and other fees and tolls that a state resident pays.
Government expenditures per capita: $6,825.88
Return on investment: -0.16 percent
*Return on investment is calculated as the ratio of expenditures that benefit individual taxpayers to the tax revenue collected from them. This value is adjusted for average income.
Residents’ taxes as a percent of total state revenue: 51.79 percent (Rank among states: 7)
*State revenue is the sum of individuals’ income tax, property tax, sales tax and other government fees, plus corporate tax and revenue generated by investments, securities, trust funds and so on.
For more on the methodology of the study, click here.