To those of you who live in a NO INCOME TAX state, how was it implemented?
What taxes replaced the the income tax?

Missouri is attempting to do so through Amendment 5, but I have reservations. Amendment 5 would increase sales taxes, and implement new taxes on services which are currently not taxed.

Here's the bill:
https://documents.house.mo.gov...llspdf/6854S.13T.pdf

Well, it's been that way in Florida since 1924, we have a surplus, our debts almost paid off, no shortage of money in the bank, roads are well maintained.

General sales taxes make up 2/3's of the states revenue, followed by service fees and tolls.

Car Tags are not expensive here, my new 2025 was $105 to renew for next year, my Harley was $40.

There are better ways to fund governments and eliminating taxes on peoples income doesn't bankrupt a state. In fact you might find since people have more money they spend more vs the state spending it for them, on pet projects.

The problem is that they are already spending too much...

State Auditor Warns of Long-Term Budget Challenges

State Auditor Scott Fitzpatrick is warning that Missouri’s General Revenue Fund is on a continued path of structural imbalance, with projected spending outpacing ongoing revenues and reserves declining more rapidly than previously forecast.

In a follow-up report released earlier this month, the Auditor notes that the Fiscal Year 2027 budget, as approved by the General Assembly, authorizes approximately $16.8 billion in General Revenue Fund spending—an increase of roughly $66 million over FY 2026 levels. Based on current projections, the report estimates FY 2027 could result in more than $1.7 billion in deficit spending...

And instead of reducing spending it seems that they want a new source of taxes.

It is intentionally vague. They don't say what they are going to tax.
It's wide open: any goods and services

"state and local sales and use taxes (or any similar transaction-based tax) may be expanded by legislation to impose taxes on transactions involving any goods and services."

And we already pay sales taxes at the state and local level which are near 10%

But, most services are currently not taxed.

So now they want to increase taxes on services with the promise of eliminating the income tax down the road.

It kind of sounds like a bait and switch.

I'll gladly pay you Tuesday... for a hamburger today.

For the summary to be reduced to one question based on four bullet points, the language preceding the summary seemed purposely obtuse.

I'll probably have to read through that again a time or two before coming to any conclusions.

quote:

Originally posted by chellim1:
The problem is that they are already spending too much...

Well, that's a completely different set of problems, it's up to the voters to put people in that curtail that excessive spending, not easy I know.....

But if MO state tax is 10% of income, and you pay 10% sales tax, your effective rate in the state is potentially 20% of total income is paid to the state. Depending on how much you spend, otoh, imagine if you only spend about 50% of your income, how much more you'll have in the bank, debt paid down etc.

I haven't researched it but imagine the proponents have put forth a budget of how tax revenue would be allocated and if passed, what cuts they would have to make (it's government so you cut real services hypothetically speaking to scare voters, you know fire, ems, police, 911 all the while you don't cut the excess out of administration or it's salaries)....

The best way to implement “it” is to never have it in the first place. TX has never had a state income tax, and a constitutional amendment passed a few years ago (2019) forbids the state from ever having one. Taxes come from individuals (property, sales, school, MUD…) and businesses.

Once you start feeding the government monster with an insatiable appetite for cash and suddenly decide to cut off the supply, it’s going to fight tooth and nail to generate it from other sources, and they all still come back to you, the taxpayers.

quote:

Originally posted by chellim1:
And instead of reducing spending it seems that they want a new source of taxes...

Yeah, it’s always the same with these government scumbags, never want to reduce wasteful spending, always try to justify that whatever shit on the table is indispensable. The people need to pay attention and vote these assholes out. Too bad, too many are uninformed and uninvolved.

quote:

Originally posted by HRK:

quote:

Originally posted by chellim1:
The problem is that they are already spending too much...

Well, that's a completely different set of problems, it's up to the voters to put people in that curtail that excessive spending, not easy I know.....

Yeah, we elected a Republican majority, who claimed to be conservatives, but they have doubled the state spending in just the last 5 years.

The top rate of income tax was cut from 6% in 2014 to 4.8% in 2024.

I don't mind a reasonable income tax it's property tax that pisses me off.

We've got a fairly high sales tax here in Nevada, and car registration is kinda expensive, but our overall tax load is pretty low.

The money comes from somewhere (your wallet) so eliminating the income tax simply transfers the potential revenue to making roads toll roads. Now you have a fee for this and a fee for that. It all adds up except if you never had any state tax liability to begin with you will now pay the tolls and fees. You might end up paying substantially more.

Florida has a state sales tax of 6% and my county is 7% increase keep getting voted down. And not much is actually taxed. just over the state line in AL it’s like 10-11 depending if food or whatnot

We do have a small business stack on large C corps

They are trying to chop property tax here the x hook tax will still be in effect. And the wor is me campaigns have begun local sheriffs and counties are already saying how poor they will be if they can’t get that juicy property tax on primary residences. And mag need to lay off staff. Of course not back office paper pushers. but street deputies.

Oh no. Don’t threaten me with a good time

House values have gone up so much in recent years and in the 2-3 counties I pay attention to in far western panhandle there’s thousands of sales transactions per month so houses getting sold at market and reassessed.

The .gov needs to ratchet back spending and whack quite a few employees.

NH does NOT have an Income Tax, or a Sales Tax! This tax policy was implemented by never having either one in the first place. While our Property Taxes are higher than many states, NH still has the third lowest tax burden in the country!

Chellim, I moved to Missouri in 1999 from Washington state. They had no income tax but did have a slightly higher sales tax. Other than that, no difference that I can see.

I don't know much about that Amendment so will have to research it some. I love Missouri but there is no one in Jeff City I trust.

quote:

I love Missouri but there is no one in Jeff City I trust.

Same here...

Make being a bureaucrat a capital offense…

I’m joking(ish) but it the Declaration does list this is one of the offenses of King George - and he sent NOWHERE near the number of administrators that we have.

“He has erected a multitude of New Offices, and sent hither swarms of Officers to harass our People, and eat out their substance.”

There was just another article on North Dakota, great oil revenue $$, low population, not many freeloaders. Yeah, there’s the weather in the Winter.

I've lived in a couple of no income tax states, NV and FL. It's great including the simplicity of not having to file a tax return.
But the bottom line is that they are going to get their pound of flesh somewhere. In both of those states a big portion of it comes from an elevated sales tax and tourism helps considerably. But it also tends to translate to elevated costs elsewhere. For example, property taxes, vehicle licensing fees etc...
And possibly more related to the legal climate but auto insurance was stupid expensive in both of those states.

They certainly aren't spending money fixing the roads. At least, not the last time I was there.

quote:

Originally posted by Powers77:
...
But the bottom line is that they are going to get their pound of flesh somewhere. ...

Yep, it's all just a shell game. Unless they are cutting expenses (which is not being proposed), the same amount of money is needed to fund government. Cutting income tax just shifts the burden to other tax vehicles like sales tax and property tax. If you are in a tourism-heavy state, that makes sense. Let outsiders who are using the resources (i.e. roads and utilities) help pay for them while giving a bit of a break to the residents. For a state like Missouri, I'm not sold that it's a good scenario. I need to educate myself more on the details of this particular amendment, though. The devil lurks in them thar details.

NH has no income tax and no sales tax. Property taxes, however, tend to be high. There is also a restaurant/meals tax.

If you live in a modest home and are a high wage earner, NH is a good place to live for wealth preservation.