Final answer:
States with no personal income tax raise money for public services through sales tax, property tax, corporate tax, excise tax, and lotteries.
Step-by-step explanation:
States with no personal income tax rely on other sources of revenue to fund public services. Some common ways these states raise money include:
- Sales Taxes: They impose higher sales tax rates on goods and services purchased within the state.
- Property Taxes: They collect taxes on real estate, such as homes and commercial buildings.
- Corporate Taxes: They tax profits earned by businesses operating within the state.
- Excise Taxes: They impose taxes on specific goods, such as alcohol, tobacco, and gasoline.
- Lottery: Some states generate revenue from state-run lotteries.
By diversifying their sources of revenue, these states can fund public services without relying on personal income tax.
Learn more about State taxation and funding for public services