mowermech
Billings, MT
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"The advantage of a state with no income tax is that it will take a lot of pressure to enact one. On the other hand, states with income, sales, and property taxes can easily jack up the rates at any time."
Well, maybe...
But, as usual, not true in ALL states. Montana does not have a sales tax. BUT, if the legislature ever passes one, it is limited by the State Constitution to no more than 4%. It would require a Constitutional Amendment to increase it above that. The chances of such an Amendment being passed by the voters is, for all practical purposes, non-existent!
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spadoctor
Clinton Corners, NY
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Here in NY about 80 miles north of NYC I pay income tax...property tax (2200.00)...school tax 2100.00)...8.0125% sales tax.. 3% home purchase tax..road tolls....56 cents a gallon gasoline tax...vehicle registration sur charges (almost double the cost). Every time you yurn around you get taxed here. There is no free lunch so if they do away with the income tax other taxes will go wayyyyy up and I bet eventually you will see income tax also like happened in CT. This is one reason we can't let them put a VAT tax on federally.
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JimK-NY
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Obviously a fulltimer considering the State for residency would want to avoid income tax, but there are additional considerations: convenience of vehicle inspections and registration, excuse from jury duty while travelling, insurance costs. From what I could tell South Dakota wins handily: no income tax, no vehicle inspections, easy registration renewal by mail, no problem with jury duty, and very low insurance costs. Turns out it is also a very nice State at least for a visit: Badlands National Park, Custer State Park, Mt Rushmore, Black Hills, Wind Cave, etc.
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jalichty
Lander, Wyoming 82520
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While I feel a number on here will scoff when I suggest Wyoming, I will remind folks that we have no state income tax, individual or corporation, a 4% state sales tax that can be adjusted by counties individually, fairly low property taxes, $350,000 home, about $2,500 property tax and insurance rates are fairly low, same $350,000 home, a little over $700. Fairly low state fuel tax, fairly low state cigarette tax, state run liquor commission which sells liquor for the same price to all vendors and some very pretty country to visit, including Grand Teton and Yellowstone National Parks, Devil's Tower, etc. It's true, our winters can be somewhat difficult to endure but a number of people go south for part of the winter and live here in God's country from early spring until late fall. Just my pitch for my home state and the last one I will live in for the rest of my life. I have lived here, Colorado and Connecticut (while working in New York City) and would not give up Wyoming for any of those.
John A. Lichty
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webslave
Clearville, PA
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Liriope wrote:(sic)... If you do your research, you will find the states with no income taxes like TX and PA ARE NOT the cheapest places to live. In fact, PA with no income tax is one of the most expensive places to live...
Bold added for emphasis...
Just to set the record straight... PA does indeed have an income tax; 3.07% flat for all levels of income whether $1.00 or $1,000,000. Pa is not one of the most expensive places to live, depending on which list you look at it, falls slightly higher than the middle of the pack. There is no state income tax on retirement income (if that is what you meant),however, for the working group, there is an income tax.
Nine states do not have income taxes; Alaska, New Hampshire, Tennessee, Florida, South Dakota, Washington, Nevada, Texas and Wyoming.
Yes, Texas is cheaper to live in than Pennsylvania, but, then again, we have rain and I can't remember the last time our state caught fire 
Moved here a few years prior to retiring from MD. Now, you want to talk expensive... The property taxes on 106 acres here is almost 1/3 the amount I was paying on 1/4 acre in Montgomery County. In fact, we wouldn't have been able to retire if we had stayed in MD...our combined retirement income wouldn't let us live in MD and still eat. 
My 2 cents, your mileage may vary...
Don
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westernrvparkowner
montana
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You can be sure of one thing, no state is going to give up any tax revenue. If they cut Income taxes, sales, income, corporate taxes and all sorts of fees will rise. Most likely any tax cut will be met by an tax increases elsewhere that will raise the tax burden on the average tax payer. Governments always want more money, not less.
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JJBIRISH
Butler, PA, USA
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webslave wrote:Liriope wrote:(sic)... If you do your research, you will find the states with no income taxes like TX and PA ARE NOT the cheapest places to live. In fact, PA with no income tax is one of the most expensive places to live...
Bold added for emphasis...
Just to set the record straight... PA does indeed have an income tax; 3.07% flat for all levels of income whether $1.00 or $1,000,000. Pa is not one of the most expensive places to live, depending on which list you look at it, falls slightly higher than the middle of the pack. There is no state income tax on retirement income (if that is what you meant),however, for the working group, there is an income tax.
just to add to what you said,
Taxes in Pennsylvania are collected on eight income classes:
wages
interest
dividends
net profits from business, profession or farm
net gain from sale or disposition of property
net income from rents, royalties, patents and copyrights
gambling and lottery winnings (except PA state lottery prizes won after July 21, 1983)
income from estates or trusts
*Social Security benefits, public and private pensions as well as IRA distributions are all exempt from state income tax in Pennsylvania.
Nine states do not have income taxes; Alaska, New Hampshire, Tennessee, Florida, South Dakota, Washington, Nevada, Texas and Wyoming.
Yes, Texas is cheaper to live in than Pennsylvania, but, then again, we have rain and I can't remember the last time our state caught fire
Moved here a few years prior to retiring from MD. Now, you want to talk expensive... The property taxes on 106 acres here is almost 1/3 the amount I was paying on 1/4 acre in Montgomery County. In fact, we wouldn't have been able to retire if we had stayed in MD...our combined retirement income wouldn't let us live in MD and still eat.
* This post was
edited 02/08/12 06:37pm by JJBIRISH *
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mike4947
N. Syracuse, NY
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As a reply to a previous poster that said the limit would be 4% state tax. Well NYS also has a 4% tax, BUT they also allow local sales taxes as well. Here we pay 8-1/2%, IIRC NY city is around 10%, and the next county over from us is just the basic 4% state tax.
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mowermech
Billings, MT
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Montana State Constitution;
Article VIII
Section 16:
Limitation on sales tax or use tax rates.
The rate of a general statewide sales tax or use tax may not exceed 4%.
Yes, local option sales taxes may be instituted. BUT, only by a vote of the people who will be affected. At the present time, I don't know of any such taxes that are above 1%. These are present primarily in high-tourism areas, AFAIK.
Most of us will only accept a sales tax if the income tax is eliminated the instant the sales tax goes into effect.
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Wildcat63
MN
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wagonmaster2 wrote:Thanks for all the replys. I'm sure Oklahoma is going to get its money from us one way or the other. The argument for eliminating the state income tax is that the state is going to cut expenses in enough places to offset the lose of the income tax. And just look at all the industry that will come running into the state with no income tax to pay. Yeh, sure, and the sun comes up in the West every morning.
Thanks again.
Wagonmaster2
Every once in a while we get a radio ad campaign here in the twin cities from Sioux Falls SD touting their business friendly climate no state income tax and cheaper property values and labor costs. While I am sure some smaller business have re-located. I haven't heard of any major industries making the move.
Wildcat63
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