(Robert Davis) – Nevada taxpayers receive one of the country’s lowest returns on investment (ROI), according to a report.
The report, by personal finance website WalletHub, examines both low-and-high tax states to see which ones provide efficient government services with tax revenue. It compares each state based on five categories: education, health, safety, economy, and infrastructure and pollution.
Overall, Nevada ranked 44th in total taxpayer ROI and government services. The Silver State also ranked in the middle of the pack in total taxes paid per capita, and dead last for its economy. However, Nevada cracked the top-20 for its infrastructure and pollution policies.
Only Hawaii, California, New Mexico, North Dakota, and Delaware had worse taxpayer ROIs than Nevada, according to the report.
“Federal taxes and support are only part of the story, though. Different states have dramatically different tax burdens. This begs the question of whether people in high-tax states receive superior government services,” the report said.
The report synthesized data from several sources, including the U.S. Census Bureau, the Bureau of Labor Statistics, the National Center for Education Statistics, the Western Interstate Commission for Higher Education, The Annie E. Casey Foundation, and the Campaign for Free College Tuition.
When compared with other “blue” states—those that voted for Joe Biden in the 2020 election—Nevada outpaces every one except New Mexico in the government services it provides its residents, according to the report.
Conversely, “red” states such as Alaska, Louisiana, and Missouri provide better government services than Nevada.
At the national level, President Joe Biden is planning on raising taxes on people making over $400,000 per year.
A report by The Heritage Foundation found Biden’s proposal would be the largest tax increase since President Lyndon Johnson raised taxes in 1968, and could reap as much as $2 trillion.
WalletHub’s ROI report was released following its 2021 Taxpayer Survey, which measured the efficacy of local taxation according to state taxpayers. It found that 74% of respondents believe states misused tax funds during the COVID-19 pandemic. Another 62% believe their current tax rate is too high.
Robert Davis | The Center Square contributor