Table 3.

Estimates of Optimal Tax by State

State	Tax in 2003	Optimal tax in 2003	Tax in 2006/2007	Optimal tax in 2006/2007
Alabama	0.17	1.25	0.43	1.15
Alaska	1.00	1.36	1.73	1.36
Arizona	1.18	1.32	1.73	1.32
Arkansas	0.51	1.15	0.59	1.19
California	0.87	1.33	0.87	1.34
Colorado	0.20	1.23	0.84	1.26
Connecticut	1.38	1.36	1.51	1.36
Delaware	0.34	1.36	0.55	1.36
District of Columbia	1.00	0.66	1.00	0.81
Florida	0.34	1.20	0.34	1.36
Georgia	0.20	1.20	0.37	1.22
Hawaii	1.23	1.36	1.53	1.36
Idaho	0.47	1.31	0.57	1.36
Illinois	0.98	1.03	0.98	0.96
Indiana	0.56	1.18	0.56	1.23
Iowa	0.36	1.23	0.36	1.23
Kansas	0.79	1.00	0.79	1.11
Kentucky	0.03	1.34	0.30	1.28
Louisiana	0.36	1.19	0.36	1.17
Maine	1.00	1.11	2.00	1.14
Maryland	1.00	0.87	1.00	0.95
Massachusetts	1.51	1.09	1.51	1.14
Michigan	1.25	1.17	2.00	1.27
Minnesota	0.48	1.25	0.82	1.17
Mississippi	0.18	1.25	0.18	1.36
Missouri	0.17	1.24	0.17	1.36
Montana	0.53	1.36	1.70	1.36
Nebraska	0.64	1.03	0.64	0.95
Nevada	0.50	1.17	0.80	1.27
New Hampshire	0.52	1.36	0.80	1.36
New Jersey	1.68	1.24	2.52	1.40
New Mexico	0.44	1.27	0.91	1.32
New York	1.50	1.30	1.50	1.36
North Carolina	0.05	1.13	0.33	1.13
North Dakota	0.44	1.19	0.44	1.36
Ohio	0.55	1.20	1.25	1.13
Oklahoma	0.23	1.29	1.03	1.26
Oregon	1.28	1.32	1.18	1.33
Pennsylvania	1.00	1.10	1.35	1.19
Rhode Island	1.45	1.35	2.46	1.36
South Carolina	0.07	1.15	0.07	1.36
South Dakota	0.46	1.07	0.86	0.98
Tennessee	0.20	1.05	0.20	1.25
Texas	0.41	1.23	0.74	1.26
Utah	0.70	1.17	0.70	1.23
Vermont	1.02	1.15	1.59	1.32
Virginia	0.03	1.36	0.30	1.30
Washington	1.43	1.34	2.03	1.31
West Virginia	0.42	1.08	0.55	1.10
Wisconsin	0.77	1.31	0.77	1.31
Wyoming	0.28	1.36	0.60	1.36