The 10 States Most Dependent on the Federal Government
When it comes to jobs and revenue, these states lean most heavily on the federal government.
This story originally appeared on SmartAsset.com.
The U.S. is a federal republic, meaning that power is held by both the central federal government, located in Washington, D.C., and by the governments of every state and territory that make up the union. But the “division of powers” isn’t as simple as it seems and neither is the division of finances, since states rely on the federal government for money and various programs to help them operate. With all this in mind, SmartAsset crunched the numbers to see which states are the most dependent on the federal government.
4 States Where Taxes on Social Security May Fall Soon
These states are considering reducing or even eliminating income taxes on Social Security benefits.
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Paying federal income taxes on Social Security benefits is a source of great irritation for millions of retirees. After years of coughing up payroll taxes to support the system, some retirees find it galling to be on the hook for an additional levy once they begin receiving benefits.
Even worse, depending on where you live, you might have to pay state income taxes on Social Security benefits, too.
Not every state has such a tax. In fact, 26 states do not Social Security tax benefits at all as of the 2020 tax year, the one for which your return is due this spring. Other states tax benefits to varying degrees.