0.0% Sales Tax States: How Do They Do It?

See Testimony at Special Joint Legislative Commission to study repeal: http://ricaptv.discovervideo.com/show/watch?id=702&t=1

Non-sales-tax states have higher revenue per capita than Rhode Island in certain key areas, without necessarily taxing at a higher rate.
The overall tax structures of non-sales-tax states do not rely on high rates in multiple categories.
Despite Rhode Island’s high taxation in all available categories, revenue in non-sales-tax states proved more resilient than in RI during the economic crisis, falling less and recovering more quickly, at and above the national average.
Non-sales-tax states manage to spend more per capita on critical government activities than RI, such as infrastructure and education.
The exception, where non-sales-tax states reduce their spending relative to Rhode Island, is in social welfare/wealth redistribution.
Non-sales-tax states have all seen net taxpayer migration from other states to them; Rhode Island has gone the other way.
The employment situation is healthier in non-sales-tax states than in Rhode Island.
Studies show residents will cross borders to shop in states without sales taxes.
The high population density across Rhode Island’s borders is likely to amplify the benefit to the state.