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Taxes better in Texas?

ketk
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POSTED: Thursday, September 12, 2013 - 6:48pm

UPDATED: Friday, September 13, 2013 - 9:31am

The Governor is travelling the country touting the advantages of living in the Lone Star State.
Of course, he’s right, but when it comes to taxes, it may or may not be true.
And now there’s a way to tell if Texas’ tax rate is really lower for you.
Of course most of us would live nowhere else.
But what if that dream job came up in a state with an income tax.
Is it necessarily worse?
We’re talking about this because, well, we’ve gotten ourselves in another spitting match with another state.
This time it’s Missouri.
Governor Perry is telling Missourans, and Marylanders too that they should move here for the low tax rate.
But the question arises, is it an apples to apples comparison.
The National Center for Policy Analysis is a conservative think tank in Dallas, and they have a new online calculator.
It tells you how you will fair on state taxes from state to state.
Let’s say you got a job offer in New York.
First, you’d go to a website comparing cost of living.
But you should also look at state taxes.
Let’s say you make $50,000 and have a 250,000 home.
It turns out, you come out ahead in New York.
That’s because sales and property taxes are so high in Texas.
But if you make $250,000, bingo. The calculus changes.
That’s because most income tax states have lower sales and property taxes.
But if you make more money, the income tax gets you.
Of course, 250,000 will get you an efficiency in New York, so there are a lot of factors.
So when planning that move or considering that job, you’ll need both calculators.
So, like a lot of things, it isn’t black and white.
An interesting exercise alright, but that job better be great to get most of us to leave.
 

The website is... whynotmove.org

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Had this discussion with family when I lived in Colorado- my wife and I had incomes similar to my sis and brother-in-law and our property values were almost the same. We came out a few thousand ahead living in Colorado. Property taxes are much lower there, and state income tax was exactly 5% of fed taxes after deductions. Cost of living, excluding taxes, were about the same Colorado vs. Texas. Go northeast or far west- hope for a raise.
Property owners in this state carry a huge burden.

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