Sunday, October 02, 2022

Do U.S. States Need Income Taxes?

Recommendable! Starve the beast!

If more states were to abandon state income taxation, how do you prevent the federal government to raise federal income taxes? Government greed knows no bounds!

"... The nine states without an individual income tax are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. The states are in every part of the country and have different industry mixes, histories, and political cultures. What they have in common is providing needed state‐​local services to their residents without complex, anti‐​freedom, and anti‐​growth individual income taxes. Most of the nine run leaner and more efficient governments than most other states. ...
My favored tax structure is a property tax to fund local government and sales tax to fund state government, and that’s about it. In some cases, local sales taxes and fees for government services are appropriate. ...
There is a movement toward repealing individual income taxes in some Republican states. Mississippi Governor Tate Reeves approved major income tax cuts this year and wants full elimination ..."

Do States Need Income Taxes? | Cato at Liberty Blog State and local governments raised $1.9 trillion in taxes in 2020. The main sources were sales taxes (35 percent), property taxes (32 percent), and individual income taxes (23 percent). But nine states do not impose an individual income tax. How do they run their governments without it?

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