There was a dream. A dream of living tax free. Alas, its just a dream. The average home owning American family will pay roughly 30% of its income to federal, state and sales tax per year. Thirty cents of each dollar you make goes immediately out the door. I know this, because I pay taxes...and did some reading over at TaxFoundation.org. This 30%, of course, is before applying any tax breaks and credits. It has been this way for many years, so you wonder why its such a huge topic during political season if nothing really changes. Anyway, I thought I'd put a list together of the states with no income tax.
There is no hard evidence showing that people living in states with no income tax have a higher quality of life then others. Simply put, your state needs money to operate. Public services, that many take for granted are paid for from revenue generated by taxing residents. What those services are and how much of them that are provided are "normally" up to the voting public.
One of the key tenets that Warren Buffett uses when evaluating an investment is management. Can they get the job done? Are they honest with shareholders, and are they greedy? (In a nutshell.) If you were looking to invest in your state or city based on its leadership...would you invest? You may find out why your taxes are so high.
What are your thoughts on state income tax?
If your state eliminated personal income tax, how would it supplement that income?
Would you be in favor of higher property and sales tax vs income tax?
Should the next politician you vote for have a better understanding of budgeting and finance?