You want to build yourself an ‘island‘ in retirement. You want to separate you, and your money, from those who would take it from you. Settling down in one of America’s growth corridors is a good first step toward finding the right place in America. But if you want to get a head start on your retirement, and move while you’re still working, you probably want to find a state with low, or no income taxes.
There are seven states with no personal income taxes, including:
- South Dakota
New Hampshire doesn’t have personal income taxes on wages or salaries but does tax dividends and interest income.
Another state may soon set out on a path to join these by cutting its own personal income taxes. Cal Thomas reports in the Chicago Tribune:
West Virginia is unique among America’s 50 states. At a convention in Wheeling, Virginia, in 1861, delegates from Virginia’s northwest counties, which were loyal to the Union, voted to break away from that state over the issue of slavery and their refusal to be part of the Confederate states.
West Virginia is again attempting to “break away,” this time on the issue of taxes. While the Biden administration wants to raise federal income taxes to cover overspending, the governor of West Virginia, Jim Justice, wants to reduce and eventually eliminate his state’s personal income tax. If successful, West Virginia would join nine other states that do not impose state income taxes on their citizens.
Though his state has experienced a population decline for 70 years, Gov. Justice believes now is the right time to reverse the trend by cutting the state’s income tax by 60% in the first year, leading to its eventual elimination.
In an interview, I asked the governor for his rationale behind erasing his state’s major revenue source. He said it is because the state’s economy is booming and it now has a “$100 million surplus,” in spite of the pandemic. That’s because, he says, businesses, including restaurants, “are 100% open” and people are flocking to the state to spend time and money.
He estimates that if his tax cut proposal passes the majority Republican legislature it will “put $2,200 more in people’s pockets. Every single person in the state will end up cash positive.”
Cutting or eliminating West Virginia’s income tax could be a powerful draw for the state. Currently, every state bordering West Virginia has a lower top marginal tax rate.
Liberty retirees and small business owners looking for a better place in America could be pleasantly surprised with West Virginia.
Action Line: If you live in the Mid-Atlantic states or the Rust Belt, do what many Americans are doing and take a trip to West Virginia. Remember, you want to live where your money is respected.
Originally posted on Your Survival Guy.