Imagine living in a country or a state that does not inflict taxes on its citizens. Sounds too good to be true, but it sure is certain countries. In America, many states do not levy wage taxes on their citizens. The government does bring in the revenue through sales taxes however. The option is ideal for the salaried class who live on a paycheck existence. Without cutting away a fraction of their earnings, it provides them with adequate monies to spend for their needs and then some. People with dividend incomes or interest incomes are not spared however, so if you do have some savings stashed away, you can bet that you will be taxed. The government needs to run, and without imposing a tax structure, a country will not be able to function.
Personal taxes do take a beating on your monthly savings when you have to pay large amounts of revenue to the government. For instance, the gas taxes on people in Washington are much higher than the rest of the country. Entertainment tax is also something that people end up paying, as do other taxes that are calculated on the basic amount spent. From a simplistic point of view, it may seem ideal to set up home in a place that does not cut through your earnings. If you are not taxed for your income, it definitely poses a rosy picture. In many places like South Dakota, Florida, Texas, Nevada, there is no imposition on your income. What does seem like a great deal may be a bother with other levies like huge property taxes.
Declaring your income if you come under the bracket needs to be listed while filing your yearly returns, irrespective of whether there is a cut in the income tax structure. If you own a home for instance, property taxes have to be paid. The argument as to how high can the taxes go, is based on the location that you live in – Florida and Texas are examples where the property taxes are much higher than the rest of the country. The point of the matter is whether your property does not burn a hole in your monthly earnings. That being said however, you would spend on gasoline, property taxes, sales taxes and other incidental taxes. At the end of the day, you cannot dodge paying your taxes, whether you are young or retired, period.