There's no better evidence of the growing chasm between America's rich and poor than state tax rates.
On average, the nation's lowest-income residents pay tax rates that are twice as high as the wealthiest 1 percent of taxpayers, according to a new report by The Institute on Taxation and Economic Policy.
That includes state, income, property and sales taxes, of which the rich pay 5.6 percent of their income and the bottom 20 percent of earners pay 11.1 percent each year.
Using ITEP data, along with data from the Tax Foundations' latest State Business Tax Climate Index, we've compiled a list of the ten states with the best tax rates for the wealthy and, consequently, the largest tax gaps between the rich and the poor.
10. Alabama
Rounding out the best states for the wealthy is Alabama, one of several Southern states that are overwhelmingly friendly to high earners.
The wealthiest 1 percent pay just 3.8 percent of their income in taxes, while the poorest taxpayers shell out 10.2 percent. The middle class isn't far behind, with 9.4 percent paid in taxes on average.
Individual income taxes: The Tax Foundation ranked Alabama the 18th best state for income taxes.
Wealthy resident: Marguerite Harbert, widow of the late construction and energy mogul, John Murdoch Harbert III, is worth $1.4 billion.
9. Indiana
In Indiana, the wealthiest 1 percent of taxpayers see 5.4 percent of their income eaten up by taxes, while the lowest earners part with 12.30 percent.
Middle-income residents shell out 10.7 percent to taxes.
Individual income taxes: The Tax Foundation ranked Indiana the 10th best state for income taxes.
Wealthy resident: Gayle Cook, member of board of directors of medical device firm Cook Group, is worth $3.4 billion.
8. Pennsylvania
Pennsylvania's wealthy pay 4.4 percent of their total income toward taxes, while the poorest 20 percent pay more than twice that rate –– 12 percent.
The middle class parts with nearly 10 percent of their take-home pay.
Individual income taxes: The Tax Foundation ranked Alabama the 12th best state for income taxes.
Wealthy resident: Hansjorg Wyss, chairman of Swiss medical device manufacturer Synthes Holding AG, is worth $7 billion.
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