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  • Feb 21, 2017 04:11 PM
    Last: 1yr
    10k
    Many of you have kind of missed the point. All states need revenue to satisfy various needs. Subject to division between states, counties, and cities and towns, this is generated through a combination of income taxes, property taxes, sales taxes, intangibles taxes, motor fuel taxes (this is a biggie), revenue for use of public facilities, like parks and bridges, and from miscellaneous government fees, like permits and licenses. States that don't have income taxes, Florida and Connecticut, for example, which is an enormous factor, make it up by higher taxes in other areas. Some states with lower taxes tax things that other states don't tax at all, like Virginia's annual tax on the value of an auto. Also, there are substantial variations in both the sales tax rates, and in what kinds of sales are and are not taxed. That is why people who live near state borders may cross the border for purchasing groceries, gasoline, expensive consumer goods like computers, furniture, and televisions, all to avoid a tax or be taxed at a lower rate. Because each state has already made adjustments in goods taxed and the tax rate for those which are not, there is really no need for a reapportionment. (There is a good argument for taxing interstate sales, but that is another subject.) The real losers are the merchants near the borders of states with lower tax rates, as they lose sales they would otherwise have to the merchants across the border. And, at the same time, it is a boon to those merchants near the border of states with higher taxes on goods, as they do business with consumers who would not otherwise travel to their stores.