The no income tax policy for any state creates an incentive for the entire state’s population to pay more attention to politicians running for office. Each election if you send the wrong people to an elected office, this could impact your pocket books and even your own security in your own homes.
If we only had such a simple policy on the national level, we would witness an entire different group of people at the highest level. Special interest and lobbyist groups would not exist. Everyone pays and everyone pays attention every two to four years on how our hard dollars are being spent.
When you spread the costs across the board in the area of sales taxes, registration fees, impact fees, real estate taxes and the likes to the entire state’s residents, then there is nothing wrong with showing favor to the state’s residents.
Now before someone chimes in and says that the lower income ends up being more impacted by the across the board taxation on goods and services, well they all receive the same services. But if someone wants to get upset about the booking of an rv site in Florida, well these people are also providing and sharing their space, goods and services with the out of state folks for a short term visit, while paying less when not being registered and living in the state as a Florida resident.
For sure the tourist industry is just another industry in the particular state. But the climate in the winter is the main draw, nothing more or nothing less. And the numbers of folks that comes every winter is not being harmed , if you have driven the roads headed to Florida lately.
One last thing is for many fulltimers that gets upset about the states tax policies, well a lot of folks seek out states with no state income taxes to create their own domicile.
But they rarely if ever spend a measurable amount of money in the state as they enjoy the tax free state havens of their proclaimed state of residence that they do not reside in at all.
