Do You Think Arizona will ever Get Rid of State Income Tax? (Phoenix: lawyers, homes)

[ScottsdaleMark]

I don't think the state has enough sources of revenue to ever do away with the income tax.

Also, if they did eliminate the income tax, we'd pay for it via increases in other taxes, e.g. sales or property.

So, I really only look at "overall tax burden" as a way of ranking states. Generally a state with no income tax is going to have high sales and property taxes to make up for it, as one can see by examining other states, or they have some exceptional funding source, e.g. historical Alaska with its oil money (although currently they're now running multi-billion-dollar budget deficits since oil prices dropped and are discussing what taxes to raise and what services to cut).

[jamies]

Originally Posted by JGMotorsport64

Govt workers pay into their pensions, the state takes around 10% of their income. The state needs to do a better job investing that money.

Says the government worker? LOL

[man4857]

As long as the state government keeps enacting crazy-right wing policies which appears undesirable to many in the country, the cost of living will continue to stay low. Once you start thinking outside the box and start innovating, that's when you become California and need to start regulating to protect your own citizens who are already here from being kicked out by affluent newcomers. So in that regards, then state-income tax could be removed eventually if it gets that bad.

2-sides of the coin here. But Arizona doesn't believe in regulation.. so

[jamies]

Originally Posted by man4857

As long as the state government keeps enacting crazy-right wing policies which appears undesirable to many in the country, the cost of living will continue to stay low. Once you start thinking outside the box and start innovating, that's when you become California and need to start regulating to protect your own citizens who are already here from being kicked out by affluent newcomers. So in that regards, then state-income tax could be removed eventually if it gets that bad.

2-sides of the coin here. But Arizona doesn't believe in regulation.. so

Alright! Let's hear it for crazy right wing "policies" like evicting illegal aliens and protecting our borders from drug smuggling. And for "constitutional carry" of firearms. Oh and that crazy policy of sticking criminals in tent jail.

Maybe they could repeal the income tax and replace it with a levy on affluent people moving from Commiefornia. There's a good leftist policy, redistribution of wealth!

Or better yet, maybe we could just SELL Tucson and the Phoenix valley to CA, since they are really just suburbs of LA now anyway. We'll throw John McCain, Gabby Gifford and her husband Mark the liar in for free!

[JGMotorsport64]

Originally Posted by jamies

Says the government worker? LOL

Small business owner but thanks

[man4857]

Originally Posted by jamies

Alright! Let's hear it for crazy right wing "policies" like evicting illegal aliens and protecting our borders from drug smuggling. And for "constitutional carry" of firearms. Oh and that crazy policy of sticking criminals in tent jail.

Maybe they could repeal the income tax and replace it with a levy on affluent people moving from Commiefornia. There's a good leftist policy, redistribution of wealth!

Or better yet, maybe we could just SELL Tucson and the Phoenix valley to CA, since they are really just suburbs of LA now anyway. We'll throw John McCain, Gabby Gifford and her husband Mark the liar in for free!

Well, to be fair, state income taxes as it is already do that lol... AZ still has a progressive income tax structure, it's just not as progressive as CA.

For example:
A.R.S. § 36-2153: Informed consent; requirements; information; website; signs; violation; civil relief; statute of limitations

I guess Arizona would rather regulate human behavior than economic policies.

My point was, if you make Arizona appear desirable to the masses, the free market will drive up prices due to demand to the point of which normal folks can't afford the COL anymore. That's exactly what CA has and quite a few other high COL areas.

[ScottsdaleMark]

Ah, Jamies, are you seriously talking bad about Gabby Giffords? That's just not a good look for anybody.

[MarketMaker]

Originally Posted by ScottsdaleMark

... if they did eliminate the income tax, we'd pay for it via increases in other taxes, e.g. sales or property.

So, I really only look at "overall tax burden" as a way of ranking states. Generally a state with no income tax is going to have high sales and property taxes to make up for it. ...

100% Correct. A point I have tried to make to others several times.

Some tax systems are simply more efficient (less inefficient?) than others. I dislike income taxes for many reasons, but the usual offset is high real estate taxes and I dislike them even more. At least if I get laid off, my income tax goes down. I detest having to pay BOTH high income and real estate taxes, but my job currently has me stuck in such a state. Sigh. It's not forever though. I think Hawaii is on the right track by having a *sales* tax that is actually an *excise* tax. The tax touches more transactions and thus can be at lower rate -- a broader base allows for a lower rate. Such a tax excels at taxing the underground economy -- something income taxes completely miss. Let's face it, nobody likes paying taxes yet we all want quality police, fire, schools, roads, libraries, etc.

AZ's current tax setup may not be ideal, but I think it's above average and among the best when I restrict the candidates to places I'd actually want to live. (FYI -- I lived in AZ, enjoyed it, have family there, & still visit the state.)

[observer53]

Originally Posted by jamies

Maybe they could limit the spending and waste? Wow! What a concept.

Never happen, gotta fund those gold plated pensions and healthcare for govt workers.

Gold plated? That's hilarious. And, employees are paying their share into the pension fund, too. In addition, health care except for singles is not inexpensive for state employees. Family coverage (and retiree coverage even for singles) is expensive.

[Caro42]

The state of Texas has NO state income tax, whatsoever. The smaller cities in Texas are very affordable in terms of housing. The climate is mild in most parts of the state, with hot summers for the most part. But then, everything is air conditioned. I lived there for almost fifty years. I recommend it.