Government Finances

Each April, Uncle Sam claims a portion of the previous year’s earnings. Because the tax code is so complex, it can be difficult for the average person to understand exactly how they’re affected. One helpful measure that simplifies things is the “tax burden.” Unlike tax rates, which can differ significantly depending on an individual’s situation, tax burden looks at the share of total personal income that residents pay in state and local taxes. This burden isn’t the same across the United States.