Why is it that some states double dip? By this I mean some states have both income & sales tax where as other states have a higher sales tax rate but no state income tax. At least with the sales tax its your choice, either buy or don't by to controll how much you pay in state taxes.
My guess is it depends on the state. Some states eliminate state income tax to make it more appealing to live there. Others do it b/c they can afford to. Nevada has no state income tax, and they probably can afford it b/c of all the gaming revenue they get. Other states spend so much money that they probably can't afford to eliminate it. I live in California, and we have so much government spending that I don't think we'll ever be able to afford eliminating such a big revenue stream. Just look at the taxes California makes off of Google executives selling their billions of dollars worth of stock. |
