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Washington, D.C. Is Worst Locale in Nation to Get Most Out of $100

$100 has lowest purchasing power in D.C., Hawaii, N.Y., N.J., and Calif.

AP
August 16, 2016

Washington, D.C. is the worst locale to spend and get the most out of $100, according to a report from the Tax Foundation published this month.

"Prices for the same goods are often much cheaper in states like Missouri or Ohio than they are in states like New York or California," the report states. "As a result, the same amount of cash can buy you comparatively more in a low-price state than in a high price state."

If you want to get the most out of $100, go to Mississippi, where that money is actually worth $115.34; Arkansas, where it’s worth $114.29; Alabama, where it’s worth $113.90; South Dakota, where it’s worth $113.64; or West Virginia, where it’s worth $112.49.

A hundred dollar bill will be eaten up the most in Washington, D.C., where it’s worth only $84.67; Hawaii, where its worth only $85.62; New York, where it’s worth only $86.43; New Jersey, where it’s worth only $87.34; or California, where it’s worth $88.97.

"Regional price differences are strikingly large; real purchasing power is 36 percent greater in Mississippi than it is in the District of Columbia," the report states. "In other words, by this measure if you have $50,000 in after-tax income in Mississippi, you would have to have after-tax earnings of $68,000 in the District of Columbia just to afford the same overall standard of living."

Published under: Economy , Washington