[curiousdannii]

Why do all the American states have different taxes?

Here in Australia we have 10% GST (Goods and services tax). So wherever you're from in the country you can expect both goods and services to be priced the same. So much simpler for the average consumer!

[vermontdevil]

The name of the country is United States of America.

So it was formed that way - each of the original 13 states got together to form a more perfect union. But each of the 13 states retained some autonomy including ability to levy tax within the state for various means or purposes.

Been that way ever since.

Can't see a national tax - our culture would not allow it.

[LoganCale]

You mean like the national income tax?

[vermontdevil]

That money funds the Federal government.

Completely different.

[rdouble]

There is a national tax on gasoline.

[vermontdevil]

Let me try again. I'm talking about a national tax to divide among the states.

Federal Income tax, Gasoline tax, etc all fund the Federal Government. And yes the Feds does distribute some of the money via grants or a Congressional action (Medicaid, highway funds, etc).

But I don't see the US adopting a national use tax like VAT that is collected by the Federal government but automatically given out to the states based on where the money is spent.

Our country likes to keep things on the state and local level as much as possible.

[protomyth]

The gas tax is a use tax which has been federally acceptable (interstate highway). Income tax required a constitutional amendment.

[jdminhbg]

> Why do all the American states have different taxes?

So that when you get fed up with sky-high taxes for no services from places like Massachusetts or California, you can move to Texas or Florida. http://en.wikipedia.org/wiki/Laboratories_of_democracy

[nostromo]

It allows companies and people to vote with their feet.