Sunday, February 22, 2009

Which States Have No State Income Tax? Increase the Bartering!

If you are thinking about moving to avoid state income taxes, the following list from leads the way to go:

Alaska, Florida, Nevada, South Dakota, Texas, Washington, and

Two states tax only dividend and interest income:
New Hampshire - a flat 5% tax on dividends and interest income over $2,400 per (or $4,800 if married filing a joint return).
Tennessee - a flat 6% tax on dividends and interest income over $1,250 per year (or $2,500 if married filing a joint return). More Tax Planning: U.S. Quick Tips

Though I have no intentions of leaving my home state of California anytime soon, anything is possible in the future. Based only on state taxes and weather, of course, I would likely consider Texas or Tennesee. However, taxes are likely higher on property, sales, etc. Still seems best for me to live on as little as possible and do as many d.i.y. projects as I can manage. I can only be taxed when government currency exchanges from one source to another. Otherwise, life remains tax-free. When will we all wake up and increase the bartering or simply increase helping each other without charging? Furthermore, check out the federal rules for giving tax-free gifts of under $12,000. It reiterates that we can't give "gifts" for services. Well, I do like to show appreciation to those who help me so I simply won't call it a gift if we decide to barter over and above a $12,000 project in a very moral way. (laughing).

Government can't legally tax us for being friendly, neighborly, or loving and so, it is in government's best interest for us to distrust each other, keep our distance, and pay for all services and goods so that it can collect a tax and spend, spend, spend it in the name of plutocracy. Hmm! I don't want to live that way!

We have so much potential to collectively work around taxes and so many people already know and practice these opportunities. I am enjoying thinking about the possibilites! I will keep seeking! Freedom!

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