Posted on 01/17/2020 7:17:12 AM PST by ConservativeMind
Is it better to live in a state with no income tax? Its a great question considering we already have to set aside a portion of our paychecks for the federal government.
The case for removing an individual income tax typically goes like this: states that dont dip directly into their residents pay become beacons for growth. Theyre better at creating jobs and keeping a core of young, educated workers from moving to other states.
The American Legislative Exchange Council reports that over the past decade the nine states without a personal income tax have consistently outperformed on GDP growth, employment growth and in-state migration the nine states with the highest taxes on personal income.
The taxation debate is largely ideological. Those with larger paychecks might see the cons of taxing personal income. On the flip side, those who want governments to help shape society and support funding that initiative might favor an income tax. Before taking a side, however, consider these factors.
-snip-
While the jurys still out on the benefits of living in a state with no income tax, experts agree that there is one clear result for those states that do levy an income tax.
It helps the poor.
An income tax is a classic tool for redistributing wealth. Its usually progressive in nature, meaning that it taxes higher earners at a greater rate than lower earners. Other taxes typically dont have that Robin Hood-like characteristic.
Its extremely difficult to fund government adequately and sustainably when families with the largest incomes are contributing the least, says Carl Davis, research director at the Institute on Taxation and Economic Policy in a statement.
(Excerpt) Read more at bankrate.com ...
Here's a start on the guessing game.
I will also think Montana.
This is the gods to honest truth.
I spent 2 months in Altamont Springs in florida. Got a job offer to go to Hicksville long Island at 20% more. I saved more money in those 2 months than the 2 years I spent in NY.
Last I checked, Mont. has a 7% Income Tax.
Not so low to me [maybe worth it though...].
Others, however, are skeptical about ALECs findings. There is no compelling evidence that states without income taxes are outperforming states that have them or even have relatively high rates
Some states redirect their taxes. FL, for example, has a very high tax on hotel rooms where other states do not. I think that there are VERY compelling reasons to assert that taxes do have an impact on growth. To compare a state like Alaska to Ohio and make assertions about differences in growth rates ignores things like social overhead capital (e.g., roads, rail service, airports, etc.), population density (e.g., labor supply), and other exogenous factors. It's just plain stupid to say taxes don't distort resource allocation.
I know of no place without a property tax. The debate is Sales Tax vs Income Tax.
Screw the poor. Let them help themselves without any government hammock.
No income taxes, no inheritance taxes, no property taxes, no wealth taxes ... none of them ... these are all fundamentally unjust.
Government can just do less.
Thank you for saying that.
Its hard for people to understand how different states can be without going through what you did.
It doesn’t help the poor to have them stuck on the dole in a high cost of living state.
Far better they keep a little more of their own wages and stay independent, with an eye to moving up and accumulating assets.
Fair article? I’ll have to read all of it to have any possibility of concluding it is fair in any way.
It only considers income tax as a wealth redistribution mechanism when property tax can do the same thing but in even more cruel ways.
The whole premise the author suggests as a means to allow gooberment to shape society is revolting. It is worse than having a complete stranger to administer a legacy. Why did the idea of gooberment as a means for social change or administration enter anyone’s head in the first place? It is a warped sense of values. Perverse actually.
The only job gooberment has is to provide for the common needs of the people. Defense, transportation, border protection, standards, law enforcement. Even screwls are a debatable gooberment function.
I am not sure it is true but someone told me that Panama City Beach has no property tax.
Versus neither.
NH has prospered for decades without either.
Better.
Its not the responsibility of the government to helpthe poor.
Southern girl: Where are y’all from?
Northern girl: I’m from a place where we never end a sentence in a preposition.
Southern girl (smiling): Where are y’all from, b!tch?
Heh,heh.
Retired military, live in Missouri, no income tax on mil ret pay. Low property tax, 7%ish sales tax, none if I shop on post. Prs property tax, not bad, vehicle registration, $ 35/yr average.
Great conservative state.
Now here in Florida my two wooded rural acres property taxes is less than a grand a year. I have well and septic and all electric - only one bill besides mortgage (OK, car insurance and cell phones... and food!).
I think sales tax is a wash as it doesn't apply to grocery foods or prescriptions, two big expenses. It's mostly on discretionary spending. I can live with that...
Exactly!
Tennessee: No income tax, highest sales tax in the nation.
...my current state of residence has NO income tax but the sales tax is quite hefty.... my current house is about two-thirds the size of my prior house in another state, but the property taxes here are more than three times the property taxes in our previous abode... the sword cuts both ways....one way or another the gubbermint has its dirty paws in your wallet....
The author states the rational, not the realilty, for the income tax helping the poor. High income tax states have high levels of poverty relative to their GDP and significantly higher cost of living than no income tax states. For example, you need anywhere from 40 - 60% higher income in New York or California to live the same lifestyle as in Texas or Florida.
They find other means to tax.
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