Do higher sales tax rates give states the financial assets they need to pay their bills? Let’s turn to Truth in Accounting’s State Data Lab to find out.

    According to 2014 data, states like New York, California, Texas, and Illinois all report high sales tax rates, they each need billions of dollars that they don’t currently have in order to pay their bills. California comes last, with a deficit of $234.55 billion, followed closely by Illinois, which needs $184.26 to pay their bills. These states’ high sales tax rates mean little if their financial problems and debts are this serious.

    Alaska, North Dakota, and Wyoming all boast the highest amounts of money available to pay their bills. Additionally, all of these states report rather low sales tax rates (1.69%, 6.55%, and 5.49%, respectively). Clearly, financial responsibility goes beyond how much tax revenue a state receives.

    How much money does your state have to pay its bills? Find out using Truth in Accounting’s State Data Lab.