Most people don’t enjoy paying taxes, but they are vital to financing important programs and projects from which US citizens benefit.
In a way, taxes are sort of like an investment. Taxpayers (investors) pay federal and state governments money with the expectation they’ll get services such as paved roads and operating national parks (a return).
But a new report by WalletHub, the personal finance site, indicates that certain states receive a much higher return on their tax investment.
Using more than 23 metrics to look at five different categories, the report identified the states with the best taxpayer ROI for 2017.
According to the report, “Red States,” or Republican states, get a much bigger bang for their buck when it comes to their tax dollars with an average ranking of 21.07, compared with “Blue States,” or Democratic states, which have an average ranking of 32.15.
Here are some other key findings:
- "Nebraska has the lowest proportion of major roads in poor condition, 5 percent, which is 8.8 times lower than in Connecticut, the state with the highest at 44 percent." "Vermont has the lowest number of violent crimes per 1,000 residents, 1.18, which is 6.2 times lower than in Alaska, the state with the highest at 7.30." "New Hampshire has the lowest infant mortality rate per 1,000 live births, 4.18, which is 2.2 times lower than in Mississippi, the state with the highest, 9.27."
Following are the top nine states with the highest return on investment for their tax dollars.
9. Texas
Total taxes paid per capita rank: 12
Overall government services rank: 28
Source: WalletHub
8. Missouri
Total taxes paid per capita rank: 5
Overall government services rank: 37
Source: WalletHub
7. Utah
Total taxes paid per capita rank: 18
Overall government services rank: 10
Source: WalletHub
6. Colorado
Total taxes paid per capita rank: 14
Overall government services rank: 11
Source: WalletHub
5. Alaska
Total taxes paid per capita rank: 1
Overall government services rank: 50
Source: WalletHub
4. Virginia
Total taxes paid per capita rank: 15
Overall government services rank: 8
Source: WalletHub
3. Florida
Total taxes paid per capita rank: 3
Overall government services rank: 34
Source: WalletHub
2. South Dakota
Total taxes paid per capita rank: 9
Overall government services rank: 16
Source: WalletHub
1. New Hampshire
Total Taxes Paid per Capita rank: 2
Overall Government Services rank: 5
Source: WalletHub