State Income Tax - Is it Worth it?

Discussion in 'Taxes and Accounting' started by cashonly, May 18, 2002.

  1. Go to Alaska. No state income tax, and they even PAY residents of the state (must be from the oil).
    #61     May 28, 2002
  2. bro59


    Yes to Alaska. Legislature just voted down a proposed income tax. Broadband is even available in the form of DSL in Anchorage, Fairbanks, Juneau, and other "non-bush" towns. Cost of living isn't that high in the towns on the road system. For those interested in how a really big pool of capital is handled see the link below (this is the source of the "they pay you" comment):
    #62     May 28, 2002
  3. John_Galt


    I'd beware of any gov't prog labeled as Anything-"proof" or "permanent".
    There's this nasty tendency to have to suddenly shift the burdens around when the source dries up.
    Be it from state lotteries, cigerette taxes, or gasoline taxes(hidden) or luxury taxes(how much was your license plate) when the revenue so much as threatens to fall below projected levels look out. We had a row going a while back in my town because police "weren't writing ENOUGH traffic tickets". When the gov't raises money by way of a "sin" tax, you'd better hope your neighbors keep on sinnin', otherwise your "sins" will be next.
    #63     May 29, 2002
  4. bro59


    There is a budget shortfall in Alaska, hence the vote on an income tax. Regarding the permanence of the Permanent Fund, it is a quasi-private corporation funded by an oil revenue tax. The legislature has tried to gut the fund many times, always unsuccesfully. Last year a bill was introduced to pay each resident a lump sum $25k, with the understanding that the state could spend the rest. It was voted down. Of course things could change and the state could destroy that golden goose, but the people that originally envisioned this fund set it up in such a way that this is unlikely. However, if oil prices fall again the state will eventually pass an income tax.
    #64     May 29, 2002
  5. trdrmac


    This was in the current month of Kiplingers Personal Finance

    They break down the cost of living of various taxes (State Income, Sales, Property) for each state. It was done for a retiree, but the concept is the same.
    #65     May 31, 2002