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Nevada has _no_ income tax? How do they pay for anything? In Sweden, income tax accounts for 60% of the entire tax base. Do states in the US have other revenue

Nevada has _no_ income tax? How do they pay for anything? In Sweden, income tax accounts for 60% of the entire tax base. Do states in the US have other revenue streams other than taxes? Because I just assume that corporate tax is also a non-starter

louislang 3y ago
Seems like gaming tax makes up for the loss of personal income tax.
KyleBrandt 3y ago
That are other taxable areas besides income, for example property and sales taxes.
dukeyukey 3y ago
Nevada has a (low) property tax, a (medium) sales tax, and takes in a lot of money through sin taxes on stuff like cigarettes, alcohol, and the casinos in and around Vegas.
- brucethemoose2 3y ago
  ^ US States often orient their taxes to take advantage of local economies, attracting certain types of businesses or residents. Sometimes the reasons are political or weird quirks, like in Texas where taxation is (by design) very difficult to change under their constitution.
vlovich123 3y ago
Sales and property taxes
stevenwoo 3y ago
Several US states have no income tax, they usually make up for it with property tax (on real estate), licenses(think gaming) and sales tax. Some states that famously have no income tax have a higher tax burden on most people due to the way this works out.
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wizerdrobe 3y ago
Federal government taxes income, many states add on something as well, my state might tax 5% in a tiered fashion such that the first 20k is 0% and then 1% for 10k and so on. Beyond that, sales tax on consumption. Property taxes on homes, vehicles, etc. gasoline tax for roads, typically both Federal and State. Nevada in particular is a hospitality state with much tourism so they’re likely getting good tax money on this. Counties within a state and cities and towns may also add on, say a percent or two for schools or a big infrastructure project. Sometimes these are temporary measures for a fixed number of years. It’s all variable and complicated.
asylteltine 3y ago
All red states get tons of federal aid
- TMWNN 3y ago
  Sorry to shatter your illusions, but the only states whose residents have paid more taxes than they receive back in terms of federal spending from 2015 to 2021 are NY, NJ, and MA. NH, WY, ND, UT, SD, VT, and NE (+$3,907 seven-year per capita average) are also in the bottom ten in terms of being closest to breakeven. To put another way, residents of all other states—including NY ($13,566) and CA ($53,887) get more federal spending per person than they pay in federal taxes, than NE. Source: Rockefeller Institute's 2023 report, table 12A. <https://rockinst.org/issue-area/balance-of-payments-2023/ https://rockinst.org/issue-area/balance-of-payments-2023/>
  - TMWNN 3y ago
    Ugh, I mangled some things in the above comment. Let me try again: The only states whose residents have on average paid more taxes than they receive back in terms of federal spending from 2015 to 2021 are ~~NY~~ CT, NJ, and MA. ~~NH, WY, ND, UT, SD, VT, and NE (+$3,907~~ WA, NY, UT, CO, NH, CA, and IL (+$1,794 seven-year per capita average) are also in the bottom ten in terms of being closest to breakeven. To put another way, residents of all 40 other states get more federal spending per person than they pay in federal taxes, than IL. Source: Rockefeller Institute's 2023 report, table ~~12A~~ 12B. <https://rockinst.org/issue-area/balance-of-payments-2023/ https://rockinst.org/issue-area/balance-of-payments-2023/>
superfrank 3y ago
Washington state is one of a number of US states that doesn't have personal or corporate income taxes. To make up for it other taxes like property taxes are a lot higher. Here's a breakdown of their 2020 revenue: https://ofm.wa.gov/washington-data-research/statewide-data/washington-trends/revenue-expenditures-trends/state-local-government-revenue-sources https://ofm.wa.gov/washington-data-research/statewide-data/w... TL;DR: - Washington is slightly more dependent on charges for services than the U.S. average. - Washington depends more heavily on excise taxes, including the general sales & use tax, selective sales taxes, and the gross receipts tax (business & occupation tax) than most any other state. - Washington is the only state with a general gross receipts tax - the Business & Occupation Tax.
scythe 3y ago
Certain states with very large tourist arrivals in proportion to their population (Nevada, Colorado, Florida, Hawaii) are able to structure their taxes so that (hopefully) much of the tax burden is paid by tourists.
csdreamer7 3y ago
Nevada at the state level specifically levies taxes on mining rights and gambling. Nevada is mostly desert with vast strands of land people do not inhabit. They rely on mines, the US government, and being next to California for their money. Area 51 for example. The Yucca Mountain Nuclear Waste Repository as another. California in the past banned gambling so that is how Las Vegas got started. As far as I know now you can only gamble in the state lotteries or on Native American reservations. They are also trying to do the Delaware thing and be a place for corporations to incorporate in. Many states charge franchise fees and income taxes on corporations. Nevada charges nothing except yearly filing fees. Last I checked Microsoft chose this state for their legal headquarters. Local jurisdictions levy taxes on property and sales.
bdcravens 3y ago
Nor does Texas.

louislang 3y ago

Seems like gaming tax makes up for the loss of personal income tax.

KyleBrandt 3y ago

That are other taxable areas besides income, for example property and sales taxes.

dukeyukey 3y ago

Nevada has a (low) property tax, a (medium) sales tax, and takes in a lot of money through sin taxes on stuff like cigarettes, alcohol, and the casinos in and around Vegas.

brucethemoose2 3y ago
^ US States often orient their taxes to take advantage of local economies, attracting certain types of businesses or residents. Sometimes the reasons are political or weird quirks, like in Texas where taxation is (by design) very difficult to change under their constitution.

vlovich123 3y ago

Sales and property taxes

stevenwoo 3y ago

Several US states have no income tax, they usually make up for it with property tax (on real estate), licenses(think gaming) and sales tax. Some states that famously have no income tax have a higher tax burden on most people due to the way this works out.

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wizerdrobe 3y ago

Federal government taxes income, many states add on something as well, my state might tax 5% in a tiered fashion such that the first 20k is 0% and then 1% for 10k and so on. Beyond that, sales tax on consumption. Property taxes on homes, vehicles, etc. gasoline tax for roads, typically both Federal and State. Nevada in particular is a hospitality state with much tourism so they’re likely getting good tax money on this. Counties within a state and cities and towns may also add on, say a percent or two for schools or a big infrastructure project. Sometimes these are temporary measures for a fixed number of years. It’s all variable and complicated.

asylteltine 3y ago

All red states get tons of federal aid

TMWNN 3y ago
Sorry to shatter your illusions, but the only states whose residents have paid more taxes than they receive back in terms of federal spending from 2015 to 2021 are NY, NJ, and MA. NH, WY, ND, UT, SD, VT, and NE (+$3,907 seven-year per capita average) are also in the bottom ten in terms of being closest to breakeven. To put another way, residents of all other states—including NY ($13,566) and CA ($53,887) get more federal spending per person than they pay in federal taxes, than NE. Source: Rockefeller Institute's 2023 report, table 12A. <https://rockinst.org/issue-area/balance-of-payments-2023/ https://rockinst.org/issue-area/balance-of-payments-2023/>
- TMWNN 3y ago
  Ugh, I mangled some things in the above comment. Let me try again: The only states whose residents have on average paid more taxes than they receive back in terms of federal spending from 2015 to 2021 are ~~NY~~ CT, NJ, and MA. ~~NH, WY, ND, UT, SD, VT, and NE (+$3,907~~ WA, NY, UT, CO, NH, CA, and IL (+$1,794 seven-year per capita average) are also in the bottom ten in terms of being closest to breakeven. To put another way, residents of all 40 other states get more federal spending per person than they pay in federal taxes, than IL. Source: Rockefeller Institute's 2023 report, table ~~12A~~ 12B. <https://rockinst.org/issue-area/balance-of-payments-2023/ https://rockinst.org/issue-area/balance-of-payments-2023/>

superfrank 3y ago

Washington state is one of a number of US states that doesn't have personal or corporate income taxes. To make up for it other taxes like property taxes are a lot higher. Here's a breakdown of their 2020 revenue: https://ofm.wa.gov/washington-data-research/statewide-data/washington-trends/revenue-expenditures-trends/state-local-government-revenue-sources https://ofm.wa.gov/washington-data-research/statewide-data/w... TL;DR: - Washington is slightly more dependent on charges for services than the U.S. average. - Washington depends more heavily on excise taxes, including the general sales & use tax, selective sales taxes, and the gross receipts tax (business & occupation tax) than most any other state. - Washington is the only state with a general gross receipts tax - the Business & Occupation Tax.

scythe 3y ago

Certain states with very large tourist arrivals in proportion to their population (Nevada, Colorado, Florida, Hawaii) are able to structure their taxes so that (hopefully) much of the tax burden is paid by tourists.

csdreamer7 3y ago

Nevada at the state level specifically levies taxes on mining rights and gambling. Nevada is mostly desert with vast strands of land people do not inhabit. They rely on mines, the US government, and being next to California for their money. Area 51 for example. The Yucca Mountain Nuclear Waste Repository as another. California in the past banned gambling so that is how Las Vegas got started. As far as I know now you can only gamble in the state lotteries or on Native American reservations. They are also trying to do the Delaware thing and be a place for corporations to incorporate in. Many states charge franchise fees and income taxes on corporations. Nevada charges nothing except yearly filing fees. Last I checked Microsoft chose this state for their legal headquarters. Local jurisdictions levy taxes on property and sales.

bdcravens 3y ago

Nor does Texas.