May it Secede

From Drudge is linked  this story on Killington, Vermont's desire to secede to join New Hampshire, which is only 25 miles west. The town's business owners think that the state of Vermont is nailing them and imposing arbitrary and capricious taxation. The question may end up on the ballot in March. The  Tax Foundation does list Vermont in the high-tax category (10.1% of income) and New Hampshire in the low-tax category (6.6%). Alaska, however, is still lower (5.5%) and who says states have to be geographically continguous? (Or perhaps Killington should just become a state unto itself, consistent with Mises's principle)