Thanks for pointing out that this hits the retired too.  Why in the world would one NOT move to a tax friendly state when retiring such as AZ, NV, WY, SD, FL, GA, MS, LA, or WA?  http://www.kiplinger.com/tool/retirement/T055-S001-state-by-state-guide-to-taxes-on-retirees/index.php?map=14#anchor
I don't want to leave but it's this type of thinking that has got me worried:  “Alaska is a tough state for older folks to live in: slipping, falling, icy so on and so forth,” Gattis said. “So if you’re not working, on a fixed income, sometimes there are other places that are less expensive to live.”