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I vote for SALES TAX state - because:
1) health of taxation would be nicely linked to the health of the economy (priority on spending health more than earning health - however, taxes retiree spending that may be income tax exempt),
2) it's based in later stage, more realistic economics (spending rather than earning),
3) it taxes all - tourists, under table money, etc, and not just residents,
4) it taxes evenly (same percent tax rate - same attention and vested interest from residents - when VOTING on such things),
5) tax entities are fewer (businesses rather than individuals - reduces taxation process),
I would look at the State's overall tax burden....usually when a State lacks a sales or income tax they ream you somewhere else....like sky high real estate taxes, etc.
Having lived in states that have high income tax/low/no sales tax vs states with no income tax/high property tax (which I know isn't sales tax) the high income tax state wins hands down. If you look at information on the quality of life in a state there is a direct correlation between high taxes and high quality of life.
Which one do you think is better in the long run financially: A State that does not have an income tax or a State that does not have a sales tax?
For the State, or for me?
Being purely selfish, I'd want no state income tax. And no county or city income tax either. I can live with sales tax - everyone pays the same rate so I consider it fair.
Actually, looking for low property taxes is first on my list
I would look at the State's overall tax burden....usually when a State lacks a sales or income tax they ream you somewhere else....like sky high real estate taxes, etc.
You said it! Had family living up north w/o sales tax (NH) and the crazy property tax was enough to make people move! Many families can pay their taxes and heat...then be broke/poor!
The state has to raise enough money to fund its operations, whatever type of taxes it relies on. In general, sales taxes are more regressive than income taxes, because the lower your income is, the greater percentage of your income you must spend.
States that choose to keep taxes too low are also choosing to provide unreasonably low levels of public services. New Hampshire is one example. Another is California, and the deterioration of its public education system at all levels since the adoption of Proposition 13.
But - at 8.25%, California has the highest state sales tax, which can total up to 10.75% with local sales tax included.
The thing about sales tax is that it's "optional." I can buy used items or items from other states and not pay this tax. Food is not taxed, so the basic necessities are not a tax burden.
GOOD POINT!! However, our 'states' usually drag us along financially, for better or worse. BUT GREAT POINT!!
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LOL (from California 
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