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State Income Tax and/or State Sales Tax? |
How can states that don't have either an income tax or sales tax generate revenue/funds to provide services for its citizens? How do states find other ways to generate revenue/funds to provide services without an income tax or sales tax? Besides income tax and sales tax, there are plenty of other taxes a state can levy (for example, property tax). There are also fines, fees, tickets, and so forth. fees, fines, foes, fums, I smell the blood of a taxpayer. Fees and fines are how those states generate revenue/funds. Either that or they don't provide much in services. Or it could be Alaska, where they have so much money coming in from oil revenues, that they actually pay the residents of that state instead of taxing them. There are no states that don't have at least one. Some choose sales tax some choose income tax, some choose both but no state has neither. There are many other taxes. Property taxes manufacturing taxes are examples. Take a close look at the gas pump. You'll find a sticker that says how much and what kind of taxes are paid. Where I'm from, for each gallon of gasoline that I buy, I have paid 17 cents to the state! In my experience, states that have no income tax have high sales tax. I don't know of any states that have no sales tax. Every state has sales tax. States without income tax generally have very high property taxes for home owners. In resort areas (like Florida) the tourists pay a lot of the tax when they rent hotel rooms and visit attractions through surtaxes. They all find their ways. When you said that I immediately thought of Las Vegas and subsequently Nevada. Nevada and Las Vegas itself have very minimal personal taxes on individuals because of how much money they make off of gambling. Some states, and some would argue all states, can afford to have no income or sales tax because they have huge revenue streams such as gambling and tourism. Not to mention lotto proceeds, local natural resource mining, other personal taxes such as licenses, etc. |
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