Will Maine end its income tax?

[KamaAina]

http://www.bankrate.com/financing/taxes/will-maine-end-its-income-tax/?

Paul LePage, the Republican governor of Maine, thinks it's time for his state to do away with its individual income tax.

LePage wants the state legislature to approve a constitutional amendment that would prohibit it from imposing a tax upon the income of any person.

It would take support by two-thirds of Maine's legislature, after which voters would have the final say. LePage envisions ending the state's income tax in 2020....

LePage is proposing higher sales taxes, cutting off state revenue sharing with local municipalities and taxing some non-profit groups.

[yeoman6987]

1. New Hampshire and Deleware and Oregon are

Democratic states with zero state income tax. They seem well adjusted especially Delaware.

[PeaceNikki]

2. Oregon has income tax. I think Delaware does, too

Oregon has no sales tax.

[yeoman6987]

7. Oh thanks.

Florida also doesn't have an income tax and people flock there because of it. Maybe due to the decreases in Northeastern states population, finding an incentive to keep natives living in these states may be a good idea. You know after Maryland and I retire I am running to Florida...after selling my house and pension, I could live like a king in Florida where I am doing alright in Maryland.

[PeaceNikki]

8. It's helpful for those on a fixed income. But often made up in higher regressive sales tax.

[yeoman6987]

10. Sales tax is Tipically a couple cents but state income tax is

Hundreds of dollars a month. I think Maryland takes 350 a month from me. I can't imagine taking 350 in sales tax in a month. I think sales tax would save most everybody money poor included.

[discntnt_irny_srcsm]

3. Delaware has an income tax

http://swz.salary.com/salarywizard/layouthtmls/swzl_statetaxrate_DE.html

Delaware has no sales tax.

[PeaceNikki]

5. And income tax is more progressive than sales tax, that's for sure.

[discntnt_irny_srcsm]

16. Yes similar to Tennessee

[KamaAina]

4. Of course, Delaware does have really high tolls

( Lynne )

and New Hampshire has state-run liquor stores, which are famous around New England for their rock-bottom prices, and whose sales have skyrocketed since Will Pitt moved up there.

I thought it was Washington that had no income tax, and Oregon had no sales tax? It would seem to be advantageous to live in Vancouver, WA and shop across the river in Portlandia.

[HERVEPA]

6. Exactly backwards.

Sales tax is regressive. Income tax is neutral or progressive.

[DamnYankeeInHouston]

12. Texas has no income tax. We pay very high sals taxes and property taxes instead.

[Salviati]

14. You might be thinking of Washington...

... and though it doesn't, it would probably be better if it did. Perhaps then we would have a more stable stream of income and not have to be in contempt of court for failing to fund the school system as we're constitutionally obliged to do, or be able to repair our bridges to keep them from falling into the rivers.

[discntnt_irny_srcsm]

9. States with no income tax

Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. Tennessee has no tax on wages but does tax interest and dividends.

[cali]

15. and NH n/t

[TreasonousBastard]

11. Really a step backwards...

LePage is proposing higher sales taxes, cutting off state revenue sharing with local municipalities and taxing some non-profit groups.

Actually, lots of steps backwards...

[HereSince1628]

13. Lowering the bar, fractionally, to facilitate break-away earnings for the rich.

This is pretty much exactly what is predicted by Game Theory when taxes on the rich drop below 50+ percent.

They use their wealth to influence government to free them from even more participation in funding government.