How do some states (TN, FL, etc) get by with having no income tax? Why can’t every state get rid of it?
In: Economics
Every state needs money to run, to pay the state workers, repair roads, and do all the necessary things. That money can come from many different places, but it has to come from *somewhere*. If a state chooses to not get money from income taxes, it must come from somewhere else. It’s not magic. Alternatives could be sales tax, licensing and inspection fees. If the state allows legal cannabis or gambling, they state can charge fees and taxes for that.
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