Texas, Utah and Tennessee Tax Systems

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When comparing the amount of revenue of Texas, Tennessee and Utah and the type of taxes they charged, there is something that needs to be taken in consideration, and it is that the states differ in size and also in the amount of population, besides that the state of Texas lack of income tax revenue. According to the data obtain from the United States Census Bureau; the state of Texas received the amount of $ 24,500,909 in sales tax revenue in the year 2012, Tennessee $6,512,352, and Utah $1,857,055. The sale tax in Texas percentage is “6.25 % to 8.25% depending on the local cities; Tennessee charges “7%, but the number can vary from 1% to 2.75 %”; Utah is “4.70% to 7.95%. Texas population is approximately 26,06 million; Utah 2,855 million, and Tennessee is 6,456 million by 2012; These numbers show that the state of Texas is bigger in size and population than Tennessee and Utah; however the sales taxes revenue is lower han Tennessee, but higher than Utah’s. Utah main type of revenue is individual income tax. The state charges it’s citizens a seven and quarter percent rate of their income. Tennessee burden just for dividends and interest income, and the state of Texas does not have any income tax revenue. By reviewing the state sales tax, and the income tax charged by thee three states, I can identify the type of tax that each one of them uses to acquire their revenue. Texas uses a regressive tax type, because it lacks of income tax revenue that divides each individual by brackets according to their incomes, while the sales tax charges everyone the same rate, regardless of their income, making this type of taxation a big problem for the poor. Utah also has a regressive tax because it charges a flat 5 percent from income Tax to e... ... middle of paper ... ...ve their advantage and disadvantage in regards their tax system; however, we can see that the state of Texas needs to find a better system to growth its tax revenue, they need to move to a progressive system, where there is a charge for income tax, but by putting a margin were only certain brackets pay the tax, and live exempt the people who makes $30,000.00 or less. This will improve the amount of income for the state, to help suicide certain causes, such as The Education system, Medicaid, and also help the Department of Transportation to pay old debts due to the construction and maintenance of new roads. This will help to stop the plan of considering bringing international companies to build new roads with the commitment of paying toll during the next fifty years, which is only going to benefit the private company, but not any changes in the revenue of the state.

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