On the recordFebruary 23, 2010
Currently, there are seven States that collect no income tax from their residents. Those States are my home the State of Nevada, Florida, South Dakota, Tennessee, Texas, Washington, and Wyoming. Under current Federal tax law, in all the States that have an income tax, individuals are allowed to deduct those income taxes from their Federal tax form. Your property taxes can also be deducted. Even when you register your car and pay your registration fee on your car, you are allowed to deduct that because that is a local tax. The tax that you are not allowed to deduct, if we don't extend current law, will be the sales tax. My State relies more on a sales tax for its revenue sources. That is what it decided to do. Other States have chosen to set their taxes up differently. But States have the flexibility to set up their taxes in the way they feel is best for their residents. My State actually has a constitutional amendment against collecting a State income tax from its residents. Nevadans don't want a State income tax, but they want to be treated fairly.
Said by
John Ensign