This quote from the article is a false statement. Not just misleading, but false. Those with the largest incomes, with rare exceptions, will generate significantly higher tax revenues to their States for both property taxes and sales taxes, as their homes tend to cost more and, making more income, tend to spend more on items that are taxable. Examples:
- A $1 million home with a 2% property tax will generate $20,000 in tax revenue, while a $200,000 home will generate only $4,000.
- A taxpayer earning $500,000 and making $100,000 in purchases subject to a 6% sales-tax will pay $6,000 per-year, while a taxpayer earning $50,000 and spending $15,000 on taxable purchases would pay $900/yr. in sales tax.
States with no democrat controlling governance is the key.
The question has no answer. There are many other factors.
All states have income tax: federal income tax.
If you are earning a living, then the income tax is bad for you. If you own a home, then the property tax is bad for you. If you buy things, then the sales tax is bad for you.
Does any state have none of the three?
BS! This is predatory taxing of those who work and invest wisely to pay for the so called poor, who just breed and have more poor.
“While the jury’s 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. It’s usually “progressive” in nature, meaning that it taxes higher earners at a greater rate than lower earners. Other taxes typically don’t have that Robin Hood-like characteristic.
“It’s 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.”
Good for retirees. If you withdraw from your 401ks no state tax makes a difference.
I’m a divorced guy with a fairly high wage and I moved to FL a year ago to save on income taxes. It depends on a lot of different factors as to whether you’re better off in a state with low income tax/high other taxes or the reverse. In my case I get harmed a lot more by high income taxes than property or sales taxes. I’m not a big spender locally so sales taxes don’t really bother me, and FL doesn’t tax food anyway which is probably 50% of my out of pocket spending. Meanwhile my old state was costing me about $15,000 a year in income taxes, I have to buy a lot of stuff to make up for that. Property taxes aren’t low in FL but I don’t have a lavish place so they’re not bad for me. If I had to have a fancy pad on the water I’m sure they’d hurt.
You have to look at it as a whole to see what works for you. If your yearly salary isn’t very much then you’ll come out better in a state with an income tax and low other taxes, effectively shifting the tax burden from yourself to the higher earners. If you have a higher salary then it’s better to be in a state that doesn’t tax income, it really starts to add up as I can attest. There’s a reason so many high earners with multiple residences have one in Florida or Texas that they claim as their primary home.
I read the entire article. It is infantile in presenting the case and data.
If this is news it is at a third grade level.