It Pays to Live in Alaska

Here is something interesting I discovered here in Alaska.

Alaska is the only state that does not collect state sales tax or levy an individual income tax. In fact, living in this state pays dividends. Last year the state paid over $2000 to every single citizen. On top of that, each person received a one-time energy dividend of over $1000. These are not tax rebates, or tax cuts, or economic stimuli -- they are distribution payments of the state's earnings.

Illinois income tax rate is 3%. That means $990 of earned income for the average citizen will be taken and given to the state. And the governor next wants to increase the state's tax rate by 50%.

Admittedly, the dividend in Alaska is expected to be less this year than last year. But any payment seems better than a debit.