On many occasions, I’ve proudly proclaimed New Hampshire as “the only state without a sales or income tax.” A couple people took issue with me, citing Alaska as a counterexample. I finally got off my butt and did a little digging.
New Hampshire does, indeed, have no sales tax and no state income tax. We do have a tax on interest and dividends, but actual salaries are not taxed.
Alaska also has no state-wide sales or income tax. However, 89 municipalities in The Last Frontier do have their own sales taxes.
While on paper, Alaska’s might be a bit more generous, in practice I think I prefer New Hampshire’s system. Of course, we don’t have a jillion gallons of crude oil to support our economy, either — not that we’re jealous.
Nor are we jealous that we have Maineiacs, Massholes, Vermonsters, and Hosers for neighbors, while Alaska just has the Hosers — and those in relatively short supply that far north. They do have the Russians right on their doorstep, though, and that counts for a lot.