pmaitra
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Income Tax Free Regime
This thread is to discuss the mechanics of a state, which may be a province, or a country, where there is no income tax. This may not be misconstrued as a tax free regime.
The purpose of this thread is not limited to any country. We may discuss how it works in some places, and how it can be implemented in India.
Example: The United States of America
The United State of America is a union of states. Each state has a large degree of autonomy on how it manages and administers its economic policies. One of them is Income Tax.
Here is a list of states that do not levy any income tax on its citizens:
How do Income Tax Free states generate revenue?
This thread is to discuss the mechanics of a state, which may be a province, or a country, where there is no income tax. This may not be misconstrued as a tax free regime.
The purpose of this thread is not limited to any country. We may discuss how it works in some places, and how it can be implemented in India.
Example: The United States of America
The United State of America is a union of states. Each state has a large degree of autonomy on how it manages and administers its economic policies. One of them is Income Tax.
Here is a list of states that do not levy any income tax on its citizens:
- Alaska
- Florida
- Nevada
- South Dakota
- Texas
- Washington
- Wyoming
- Tennessee (grey area)
- New Hampshire (grey area)
How do Income Tax Free states generate revenue?
- Alaska and Wyoming, inter alia, generate revenue from severance taxes on natural resource extraction.
- Nevada and Texas, inter alia, collect a bulk of their taxes from sales.
- New Hampshire, inter alia, collect a lot of tax from excise.