I live in florida and we have no state income tax and basically support the state with a sales tax. Of course much of that is paid by tourists.
AndyH wrote:
I haven't read the decision yet, but I think that the logic will likely not be overturned.
I agree completely that the sales tax is the most regressive, both in terms of who pays it and its effect on the economy. Even the poorest really HAVE to purchase stuff, and pay a higher percentage of their income toward it. And the recent tax code changes eliminating its deductibility just make things worse.
On the second point, we are a consumer driven economy, unquestionably. Yacht purchases don't fuel it, and neither do state tax collections. Spending on consumer goods is the great driver of manufacturing and job creation. I'd love to see states move away from a taxation policy that inarguably hurts consumer spending.
It doesn't really matter much personally to me - I live in a state that has no sales tax. I earn my income in another state and pay income tax there, which I am much more comfortable with. And of course, I NEVER make big ticket purchases there if possible. I come home to New Hampshire and buy it there instead, or buy it over the web where I don't (and won't have to in the future) pay it.
Sales taxes are bad business for all, in my opinion.
Andy
I haven't read the decision yet, but I think that ... (
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