Capital Comments

How Do States Manage Without Individual Income Taxes?


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Indiana has an individual income tax to help pay for state services. Indiana raises about $8 billion a year from its state income tax, which is 36% of total general fund revenues. Most states have income taxes, but eight states do not. Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington (state) and Wyoming do not collect individual income taxes to fund their state governments. How do they get by? What do they do instead?

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Capital CommentsBy Purdue Agriculture

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