UPDATE: 10 states where taxpayers get worst bang for the buck


Today 9:52 AM ET (MarketWatch)

By Catey Hill, MarketWatch

Residents of these states get the least bang for their taxpayer buck. According to a survey released Monday by WalletHub.com, people living in these 10 states don't get as high quality government services -- relative to the amount they pay in taxes -- as people living in most other states. Government services includes perks like infrastructure (quality of roads and bridges, public transit, commute times, and more), education (school rankings and high school education graduation rates), health (number of hospitals per capita, life expectancy, medical premiums and expenses, and more), safety (violent crime rates, fatalities per miles traveled, under-the-influence traffic violations, sex offenders and more), pollution (water quality and air pollution) and the economy (unemployment rate and job growth, average income and cost of living, and home price volatility).

(Also see: 10 states where taxpayers get the best bang for their buck http://www.marketwatch.com/story/10-states-where-taxpayers-get-best-bang-for-the-buck-2014-04-22.)

-- By Catey Hill
-Catey Hill; 415-439-6400; AskNewswires@dowjones.com

10. Kentucky

Average annual state and local taxes: $7,472

The Bluegrass State ranks 42nd in the nation when it comes to the return on investment that residents get from their tax dollars. Kentucky's taxes are higher than average (it ranks 30th in the nation in terms of tax burden, as residents must shell out an average of nearly $7,500 each year in state and local taxes) and it ranks in the bottom half of states when it comes to education, health, safety, pollution and the economy. The only area where it scores relatively highly (22nd in the nation) is with respect to its infrastructure.
-Catey Hill; 415-439-6400; AskNewswires@dowjones.com

9. Alabama

Average annual state and local taxes: $5,846

Alabama residents don't get hit with a high tax bill -- the state has the 12th lowest tax burden in the country -- but they also don't get a lot in return from Uncle Sam for their hard-earned dollars. In all measures of government services -- infrastructure, education, health, safety, pollution and the economy -- Alabama is well below average, and the state is particularly challenged when it comes to health, where it ranks 48th.
-Catey Hill; 415-439-6400; AskNewswires@dowjones.com

7 (tie). California

Average annual state and local taxes: $9,509

With the second highest tax burden in the country behind New York, California isn't cheap to live in. Plus, its infrastructure ranks a dismal 49th in the nation (Angelenos, we don't have to tell you this) and it has the worst pollution in the country. Still, it ranks fourth in terms of education and ninth in health.
-Catey Hill; 415-439-6400; AskNewswires@dowjones.com

7 (tie). Tennessee

Average annual state and local taxes: $7,252

Health and safety aren't the Volunteer State's strong suits -- it ranks 47th for both -- nor is pollution, where it ranks 43rd. And while it scores better on measures of infrastructure and education, it still has taxes that are slightly higher than the national average. All in all, taxpayers would be better off in Georgia or South Carolina.
-Catey Hill; 415-439-6400; AskNewswires@dowjones.com

6. West Virginia

Average annual state and local taxes: $6,598

Appalachia is known for its low taxes, and West Virginia is no exception. The state ranks 18th in terms of tax burden but a dismal 47th on government services. It has the worst health in the nation, and the second worst infrastructure. At least the land and air are relatively clean: It ranks 22nd in pollution levels.
-Catey Hill; 415-439-6400; AskNewswires@dowjones.com

5. North Carolina

Average annual state and local taxes: $7,789

Higher than average taxes and less than stellar government services plague the Tar Heel State. None of the measures of government services are much above average (with respect to safety it ranks 25th, its best ranking) and its economy ranks 43rd in the nation and it ranks 41st in pollution.
-Catey Hill; 415-439-6400; AskNewswires@dowjones.com

4. District of Columbia

Average annual state and local taxes: $8,034

Don't look to our nation's capital as a model of taxpayer ROI: It's got higher-than-average taxes and worse-than-average government services. On all measures of government services, it ranks below average and is particularly abysmal when it comes to pollution (50th) and health (48th).
-Catey Hill; 415-439-6400; AskNewswires@dowjones.com

3. Louisiana

Average annual state and local taxes: $6,564

It isn't the greatest place to get an education (it ranks 50th) or to take a road trip (its infrastructure, as every New Orleans resident surely knows, isn't the best, ranking 44th in the nation). But at least Louisiana residents pay less in taxes than residents of most other states.
-Catey Hill; 415-439-6400; AskNewswires@dowjones.com

2. Mississippi

Average annual state and local taxes: $6,210

Like its neighbor Louisiana, Mississippi boasts taxes that are significantly lower than average, but its residents get a very poor rate of return from what they do pay (this state has the worst government services in the nation). It is got the worst economy in the nation, and its education (49th) and health (46th) ranking aren't much better.
-Catey Hill; 415-439-6400; AskNewswires@dowjones.com

1. Arkansas

Average annual state and local taxes: $7,557

When it comes to taxpayer ROI, those who live in Arkansas see the worst of it. They pay taxes that are higher than average and yet their government services rank 50th in the nation (only Mississippi is worse). Safety in the state ranks 48th in the nation, the economy 44th and health 43rd.
-Catey Hill; 415-439-6400; AskNewswires@dowjones.com

(END) Dow Jones Newswires
April 23, 2014 09:52 ET (13:52 GMT)
Copyright (c) 2014 Dow Jones & Company, Inc.

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