Sunday Focus: Low Taxes = Low Standard of living?

Kiplinger writes:

10 most tax-friendly states in 2014

You can save big on taxes if you live in one of these states, but you might find quality-of-life services wanting.

No. 5: Alabama

• State income tax: 2 percent-5 percent
• State sales tax: 4 percent
• Gas taxes and fees: $0.21 per gallon

The Yellowhammer State moves up from 6th to 5th on our annual rankings because its state and local property tax collections, per capita, have dropped to the lowest in the U.S., according to the Tax Foundation. Income tax rates top out at a maximum rate of 5 percent on taxable income of more than $3,000 for single filers and $6,000 for married couples. Alabama also allows residents to deduct all of their federal income tax from state taxable income.
While the state’s sales tax is 4 percent, additional levies from cities and counties boost the state average to 8.5 percent. And Alabama is one of a minority of states that doesn’t exempt food from sales taxes. Prescription drugs and insulin-related items are exempt, however.
The median property tax on the state's median home value of $119,600 is a low $398, according to the Tax Foundation.
Alabama also has one of the lowest cigarette tax rates in the U.S., at just 43 cents per pack.

A couple of thoughts:

• Honestly, I am not an anti-smoking militant, but if we want to improve the health of the people, shouldn't we give them more reason to quit--or not start in the first place?
• Is there a connection between this report and the previous posting on TimLennox.com about the state's K-12 education getting "F" grades from the U.S. Chamber of Commerce?
• Our property tax is low not because the state cares so much for the poor. It is low because the people who donate big money to election campaigns own lots of Alabama land.

 SEE the Full Kiplinger report HERE.

Thanks to the now higher taxed Financial Editor Jay for finding this one! He has moved, and writes: Here in Maryland taxes are high.  However, the parks are well-maintained, schools are among the best in the USA.  Every kid in Frederick County, regardless of income,  is eligible for a free nutritious breakfast.  County office on Aging is staffed by well-trained, full time employees.]

[Sunday Focus is a regular feature of TimLennox.com]