Is it true that Florida doesn't have state taxes? Does that mean that there is no state income tax withheld? Are there any other states like that one? Pardon my ignorance, but I am fairly new to the US. Thanks
I think Arizona is another one that has no state income tax - I believe it is done to attract the older/retired people who have smaller incomes to begin with and having no state tax on it lets them spend more of it on things they need. I think Connecticut (or another new england state) has no sales tax Dave
In NY we have state tax, city tax, sales tax, property tax, and every other tax that you can imagine. I had to park my car at a garage in Manhattan a couple of weeks ago. The tax was 18-1/2% [ January 30, 2002: Message edited by: Thomas Paul ]
We have state and city taxes as well as sales tax in Ohio. I am curious - how is it that some states do not have tax at all? Why should some pay and some not, is there some logic behind the levy of taxes? I read an article that says that IRS itself is illegal according to the Constitution of America. Is this true?
There is in fact a loophole in the law that makes collection of taxes upon private persons a hypothetically unenforceable act. I've got a friend or two who send in letters every year stating the tax-gathering by the Federal government is a violation of their Constitutional rights, and they won't pay it. To date, none of them have been hassled, or so they say. Business entities have no such luxury. Corporations in particular are very much taxable. The law explicitly says an employer is liable for taxes an employee didn't pay if they failed to withhold anything. Some people would argue this is merely an indirect enforcement of the same unenforceable practice, but it's not easy to fight. Up in the northwest states, they seem to have a pretty common strategy. The less taxes you have, the smaller the government you can afford. Smaller government, less legislation. Less legislation, less regulation. People remain "free" because they don't hire lots of people to run their lives. In metropolitan/industrialized areas, as we all know, that would never fly.
There are several states with no state income taxes. Florida is one, as several people have verified. Washington state is another. The state of Alaska actually pays you to live there - it's some amount based on the number of people in your family. Of course, they take that money from the oil companies, so guess who ultimately pays for that? Also, Nevada, South Dakota, Texas, and Wyoming. http://www.taxadmin.org/fta/rate/ind_inc.html
Originally posted by shilpa kulkarni: I read an article that says that IRS itself is illegal according to the Constitution of America. Is this true?
The 16th ammendment covers that: "The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration."