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Author Topic: Low Tax Living - Selected States  (Read 36079 times)

freedomroad

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Low Tax Living - Selected States
« on: November 18, 2002, 03:05:37 pm »

Many libertarians like to pay as little taxes as possible.  There are many possible reasons for this.  If you go to the basics of libertarian government theory you get a very simple reason.  Taxes  equals income for the government.  The government is always trying to get larger.  The more income the government has the larger the government is able to get.  If you take money away from the government it will shrink.  Government is not bad, according to most libertarians.  However, big government, government larger than the Constitution allows, is bad.

Which states are the best to live in for tax reasons?  Which states have the lowest sales taxes?  Which states have the lowest income taxes?  Which state have the lowest property taxes?  Which states have the lowest corporate taxes?  Which state are closest to other states with low sales taxes?  Which states have the most amount of land?  Which states have the least amount of large urban areas?  Which states allow people to make rather than buy many of their goods?  These are the questions this thread will try to answer.  Some of the questions have been answered before while some may not have been.  The questions will be answered and the states will be ranked as to the answers.


Some starter info.

Various State Sales Tax Rates as of December 31, 2001

STATE   General Sales and Use Tax    State and local sales tax average x   Gasoline Tax   Cigarette Tax   Spirits Tax   Table Wine Tax   Beer Tax
         (Cents per   (Cents per 20-pack)    (Dollars per Gallon)    (Dollars per Gallon)    (Dollars per Gallon)
         Gallon)             
MT      Â Â Â None    0%   27¢    18¢    (b)    $1.06    $0.14
DE      Â Â Â None    0%   23¢    24¢    $3.75    $0.97    $0.16
New H.   None    0%   18¢    52¢    (b)    (b)    $0.30
Alaska    None    1.05%   8¢    $1.00    $5.60    $0.85    $0.35
Idaho  Â Â Â 5%   5.05%   25¢    28¢    (b)    $0.45    $0.15
Vermont  5%   5%   19¢    44¢    (b)    $0.55    $0.27
Maine  Â Â Â 5%   5%   22¢    74¢    (b)    $0.60    $0.35
Wyoming 4%   5.25%   13¢ (f)    12¢    (b)    (b)    $0.02
South D.  4%   5.15%   22¢    33¢    $3.93    $0.93    $0.27
North D.  5%   5.50%   21¢    44¢    $2.50    $0.50    $0.16

x is from 2002 Sales Tax Clearinghouse found at http://thestc.com/STrates.stm

Summary:
1. MT, DE, NH, and AK have very low sales tax rates.
2. ID, VT, ME, WY, and SD have low sale tax rates.
3. ND has average sales tax rates.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
OVERALL


Income Tax Summary:
1. WY, AK, and SD have no income tax
2. NH and ND have low income tax rates.
3. DE, MT, and ID have average income tax rates.
4. VT and ME have very high income tax rates

Sales Tax Summary:
1. MT, DE, NH, and AK have very low sales tax rates.
2. ID, VT, ME, WY, and SD have low sale tax rates.
3. ND has average sales tax rates.

Corporate Income Tax Summary:
1. WY has no corporate income tax.
2. SD and MT have low corporate income tax rates.
3. AK and ID have average corporate income tax rates.
4. ME, NH, DE, ND, and VT have high corporate income tax rates.


States Ranked by Lowest Income, Sales, and Corporate Taxes
1.WY
2. SD
3. AK
4. NH
5. DE
6. MT
7. ND
8. ID
9. VT
10. ME
« Last Edit: January 25, 2003, 03:43:22 pm by FreedomRoad »
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JasonPSorens

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Re:Low Tax Living - Selected States
« Reply #1 on: November 18, 2002, 04:19:29 pm »

The single best measure of total tax burden is state and local tax revenue from all sources as a percentage of state income.  According to this year's figures, Alaska is the big winner (and has been for a while), due to the Permanent Fund.

Alaska6.3
New Hampshire8.6
South Dakota9.1
Wyoming9.8
Montana10.0
North Dakota10.2
Delaware10.2
Idaho10.5
Vermont11.0
Maine12.8

However, if you use state and local government spending as a percentage of Gross State Product, the figures are a little different, partly because these numbers are taken from 2000, and partly because some states derive substantial portions of their revenue from non-tax sources (tolls, fees, profits from public enterprises, etc.)


New Hampshire6.2
Delaware6.9
South Dakota8.3
North Dakota9.1
Wyoming9.4
Idaho9.5
Alaska9.7
Vermont9.7
Maine9.8
Montana10.8

All data and sources available on the State Data page:
http://www.freestateproject.org/state.htm

Separating myth from reality with regard to some of these states therefore seems to be a task which comprehensive statistics can accomplish.
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Reaper

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Re:Low Tax Living - Selected States
« Reply #2 on: November 18, 2002, 06:27:00 pm »

I just got a copy of "Where taxes are lowest" published by Liberty Magazine.  I'll read through it and post the relevant info according to them for the states under consideration.  May take me a couple days to get through the whole thing.

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JasonPSorens

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Re:Low Tax Living - Selected States
« Reply #3 on: November 18, 2002, 07:09:10 pm »

Yeah, I've read it.  They say taxes are lowest in New Hampshire and South Dakota, which basically mirrors the above data (assuming you don't count Permanent Fund disbursements as a debit from taxation in Alaska), except that they give SD a slight edge over NH due to its lower per capita taxation.  But IMO, per capita taxation is not the correct standard.  A state could have low per capita taxation simply because it has less wealth and there's less to tax, but taxation hurts more.  And that seems to be partly the case here, because if you use taxation as a percentage of income, SD doesn't look quite so good.
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Re:Low Tax Living - Selected States
« Reply #4 on: November 18, 2002, 10:57:33 pm »

Maybe I have a newer version?

So far mine doesn't read that way.  In fact it states that between 1992 and 2000 New Hampshire's per capita tax increased by 55% putting several states ahead of it.

I'll post more once I've had a chance to read it all.
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ZionCurtain

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Re:Low Tax Living - Selected States
« Reply #5 on: November 19, 2002, 01:34:22 pm »

NH is facing a 100,000,000 dollar budget deficit. Which they will raise taxes to get.
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Otosan

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Re:Low Tax Living - Selected States
« Reply #6 on: November 19, 2002, 01:38:52 pm »

Post me a state that aint facing a budget deficet and the threat of raising taxes?  :-[

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Re:Low Tax Living - Selected States
« Reply #7 on: November 19, 2002, 02:17:46 pm »

According to this site, which state 2002 and 2003 state budgets, the following do not have budget deficits:

http://www.ncsl.org/programs/fiscal/presbta02.htm

State     2002 deficit   2003 deficit
Alaska         $777.4        $842.7
Delaware    $0               $0
Idaho          $221           $75
Montana      $0               $118
NH               $19.7          $54.6
ND               $7.4            $7.6
SD               $19.6          $36.1
Vermont      $67.1          $38
Wyoming     $0               $0

figures are in millions. only Wyoming and Delaware are doing fine budget wise. 7 states reported no budget gaps total.
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JasonPSorens

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Re:Low Tax Living - Selected States
« Reply #8 on: November 19, 2002, 02:33:48 pm »

I notice that according to that website most of the candidate states did not raise (or lower) taxes this year.  Only Vermont and Maine raised taxes.
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Re:Low Tax Living - Selected States
« Reply #9 on: November 19, 2002, 05:09:49 pm »

Jason, when you said only two states raised taxes, what do you  mean by "raising taxes" though?

Raising income taxes?  Employer's burdens?  Gas, sales, liquor taxes?  Cigarette taxes?  etc, etc...

dada
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JasonPSorens

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Re:Low Tax Living - Selected States
« Reply #10 on: November 19, 2002, 05:13:42 pm »

Raised total revenues by more than 1% of previous revenues.  (That's the definition the website cited uses.)
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"Educate your children, educate yourselves, in the love for the freedom of others, for only in this way will your own freedom not be a gratuitous gift from fate. You will be aware of its worth and will have the courage to defend it." --Joaquim Nabuco (1883), Abolitionism

freedomroad

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Re:Low Tax Living - Selected States - Wyoming
« Reply #11 on: January 25, 2003, 03:06:34 pm »

Which states are the best to live in for tax reasons?  Which states have the lowest sales taxes?  Which states have the lowest income taxes?  Which state have the lowest property taxes?  

I have done some research into Wyoming on these matters.

First off, let me say that WY has no income tax on wages or investments, no corporate tax, and very low property taxes and cost of living rates, overall.

Info. on selected cities in WY:

Gillette in Campbell County-
population around 20,000 in city
cost of living index (lower number better) 43 out of a 100 as the national average (source, monstermoving)
cost of living index (lower is better) 87 out of 100 as the national average (source, homefair cityreports)
sales tax 5% (source, monstermoving)
property taxes for 2000 sq ft home $640 yearly (source, monstermoving)
property tax rate 0.80% with 1.2 - 1.4 common to nation (source, homefair city moving)
notes: Gillette is 102 miles from the Sheridan VA Medical Center and 233 miles from Billing, MT which has no sales tax., average 3 bedroom home $103,584 (source, homefair cityreport)

Sheridan in Sheridan County
population around 16,000 in city
cost of living index (lower is better) 96 out of 100 as the national average (source, homefair cityreports)
sales tax 6% (source, homefair cityreports)
property tax rate 0.75% with 1.2 - 1.4 common to nation (source, homefair citymoving)
notes: 2 bedroom apartment $325 (source, homefair cityreports) , city has a VA medical center,
Sheridan is 130 miles from Billings, MT which has no sales tax.  

Cheyenne in Laramie County
population around 54,000 in city
cost of living index (lower is better) 73 out of 100 as the national average (source, monstermoving)
cost of living index (lower is better) 90 out of 100 as the national average (source, homefair cityreports)
sales tax 6% (source, monstermoving)
property taxes for 2000 sq ft home $1,859 yearly (source, monstermoving)
property tax rate 0.80% with 1.2 - 1.4 common to nation (source, homefair citymoving)

Casper in Natrona County
population around 50,000 in city
cost of living index 43 out of 100 as national average (source, monstermoving)
sales tax 5% (source, monstermoving)
property tax for 2000 sq ft home $797 (source, monstermoving)
note: average 2000 sq ft home $118,000 (monstermoving)

Laramie in Albany County
population around 27,000 in city
cost of living index (lower is better) 91 out of 100 as the national average (source, homefair cityreports)
sales tax 6% (source, homefair cityreports)
property tax rate 0.99% with 1.2 - 1.4 common to nation (source, homefair citymoving)
notes: unemployment 1.9% (source, homefair citymoving)

Jackson in Teton County
population around 8,500 in city
cost of living index 131 out of 100 as national average (source, monstermoving)
sales tax 6% (source, monstermoving)
property taxes for 2000 sq ft home $1,307 yearly (source, monstermoving)
note: average 2000 sq ft home $422,000 (monstermoving)
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mactruk

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Re:Low Tax Living - Selected States
« Reply #12 on: January 25, 2003, 10:18:03 pm »

  If the vote is controled by fsp who cares what the tax rate is?  What counts is how big the infastructure is that will require taxes ie.. large cities,  no power plants, no water supply, and how much future bond obligations need to be paid for.  Then you fire all the usless gov empies.
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freedomroad

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Re:Low Tax Living - Selected States
« Reply #13 on: January 26, 2003, 10:23:05 am »

 If the vote is controled by fsp who cares what the tax rate is?

What do you mean?  I control my vote.  Everyone else controls their vote.  The FSP will be by far the largest political group in the state but it will certainly not control much.  The tax rates are extremely important.  They help show how statist a state is and the cost of living.  Some people might not be able to move to a high tax, average wage state like VT.  WY is a low tax, average wage state.  

Quote
 What counts is how big the infastructure is that will require taxes ie.. large cities,  no power plants, no water supply, and how much future bond obligations need to be paid for.  
I agree that this is also important.  However, this is easier to guess than tax rates.  We know that what usually happens is the larger a city gets the more infastructure it develops.  


Quote
Then you fire all the usless gov empies.

Well, the FSP will never be in a position to fire all of the gov. workers in any of the states.  In fact, some of the FSP members will be government works, many of us.  Anyone that wins an election works for the military, works for city services such as fire, sheriff, and such.  For example, I will be a school teacher and I might work for the government.  You have to understand that in many of WY's cities the largest single employers are government employers.  This is the same for the entire country.  We will need these voters.  We will try to cut taxes (and it will work) and this will slow down the hiring of most of the potential new government workers.  Some of the government workers might also be fired but that is unlikely.  What is much more likely is that we will allow attrition to shrink the government work force and at the same time try to privatize some of thee government services.
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mactruk

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Re:Low Tax Living - Selected States
« Reply #14 on: January 26, 2003, 02:52:35 pm »

  I think taking money from one person and giving to another to regulate that person is not freedom.  If you look at most tax and spend employees they are there to assure that the private person obeys,  or do the work that a private bis could do for a lot less.  This whole site seems to just want to move some flavor of state and fed oppressive government  Do big city people have a fear of self reliance?  This is just my humble opinion but maybe the definition of freedom is at odds here.
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