Escaping High Taxes

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http://toughmoneylove.com/2009/05/18/escaping-high-taxes/
 Quote:
Here are some of the most interesting conclusions from the authors’ study: The tax differential between low-tax states (e.g., Texas and Tennessee) and high-tax states (e,g. California and Ohio) is widening. This makes a move from one state to the other financially profitable both in lower tax bills and more job opportunities. For every day from 1998 through 2007, at least 1,100 people moved from the nine highest income-tax states to the nine no-income tax states. During the 1998-2007 period, the no-income tax states created 89% more jobs and had a 32% faster growth in personal income compared to the high-income tax states. During the period 2002-2005, states that invoked a “soak the rich” tax hike experienced a significant reduction in the number of rich people paying taxes in these states relative to the national average.
 Quote:
Anticipating a “more taxes =better schools, etc.” counter-argument, the authors compared New Hampshire to New York and California: The Live Free or Die State has no income or sales tax, yet it has high-quality schools and excellent public services. Students in New Hampshire public schools achieve the fourth-highest test scores in the nation — even though the state spends about $1,000 a year less per resident on state and local government than the average state and, incredibly, $5,000 less per person than New York. And on the other side of the ledger, California in 2007 had the highest-paid classroom teachers in the nation, and yet the Golden State had the second-lowest test scores. Finally, no opinion piece like this can forget taking a well-deserved shot at New Jersey: Or consider the fiasco of New Jersey. In the early 1960s, the state had no state income tax and no state sales tax. It was a rapidly growing state attracting people from everywhere and running budget surpluses. Today its income and sales taxes are among the highest in the nation yet it suffers from perpetual deficits and its schools rank among the worst in the nation — much worse than those in New Hampshire. Most of the massive infusion of tax dollars over the past 40 years has simply enriched the public-employee unions in the Garden State. People are fleeing the state in droves.
 

JHZR2

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I love it... When the states that are getting this influx get as populated as the "higher tax" states, guess what will happen? Things will go down the tubes there too.
 
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 Originally Posted By: Johnny
This is one of the main reasons that I am thinking about moving from WI to TX.
DOOOO IIIT! Just not Houston. Houston (city limits) sucks, too much crime. Overall, happy with my move to TX aside from all things Houston.
 

JHZR2

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Wow, the 4th and 8th grade ratings from USA State-by-State Public School Rankings (based on data from the Nation's Report Card provided by U.S. Department of Education) don't seem to line up... NJ being 6th in 4th grade, and 16th in 8th grade doesn't seem to be "worst in the nation". Seems to be the case with many of these posts, Mr. Tempest. http://www.psk12.com/rating/USindexphp/STATE_US.html
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Gr 4
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Math
Ave
1 	New Hampshire 	NH 	228.0 	243.0 	471.0	
2 	Massachusetts 	MA 	228.0 	242.0 	470.0	
3 	Connecticut 	CT 	228.0 	241.0 	469.0	
4 	Vermont 	VT 	226.0 	242.0 	468.0	
5 	Minnesota 	MN 	223.0 	242.0 	465.0	
6 	New Jersey 	NJ 	225.0 	239.0 	464.0	
7 	North Carolina 	NC 	221.0 	242.0 	463.0	
8 	Wyoming 	WY 	222.0 	241.0 	463.0	
9 	Kansas 	KS 	220.0 	242.0 	462.0	
10 	Maine 	ME 	224.0 	238.0 	462.0	
11 	Virginia 	VA 	223.0 	239.0 	462.0	
12 	Iowa 	IA 	223.0 	238.0 	461.0	
13 	Delaware 	DE 	224.0 	236.0 	460.0	
14 	North Dakota 	ND 	222.0 	238.0 	460.0	
15 	Ohio 	OH 	222.0 	238.0 	460.0	
16 	Colorado 	CO 	224.0 	235.0 	459.0	
17 	Montana 	MT 	223.0 	236.0 	459.0	
18 	South Dakota 	SD 	222.0 	237.0 	459.0	
19 	Washington 	WA 	221.0 	238.0 	459.0	
20 	Indiana 	IN 	220.0 	238.0 	458.0	
21 	New York 	NY 	222.0 	236.0 	458.0	
22 	Wisconsin 	WI 	221.0 	237.0 	458.0	
23 	Missouri 	MO 	222.0 	235.0 	457.0	
24 	Nebraska 	NE 	221.0 	236.0 	457.0	
25 	Michigan 	MI 	219.0 	236.0 	455.0	
26 	Pennsylvania 	PA 	219.0 	236.0 	455.0	
27 	Oregon 	OR 	218.0 	236.0 	454.0	
28 	Utah 	UT 	219.0 	235.0 	454.0	
29 	Idaho 	ID 	218.0 	235.0 	453.0	
30 	Florida 	FL 	218.0 	234.0 	452.0	
31 	Maryland 	MD 	219.0 	233.0 	452.0	
32 	Texas 	TX 	215.0 	237.0 	452.0	
33 	South Carolina 	SC 	215.0 	236.0 	451.0	
34 	West Virginia 	WV 	219.0 	231.0 	450.0	
35 	Illinois 	IL 	216.0 	233.0 	449.0	
36 	Kentucky 	KY 	219.0 	229.0 	448.0	
37 	Rhode Island 	RI 	216.0 	230.0 	446.0	
38 	Alaska 	AK 	212.0 	233.0 	445.0	
39 	Georgia 	GA 	214.0 	230.0 	444.0	
40 	Arkansas 	AR 	214.0 	229.0 	443.0	
41 	Oklahoma 	OK 	214.0 	229.0 	443.0	
42 	Tennessee 	TN 	212.0 	228.0 	440.0	
43 	Arizona 	AZ 	209.0 	229.0 	438.0	
44 	Hawaii 	HI 	208.0 	227.0 	435.0	
45 	Nevada 	NV 	207.0 	228.0 	435.0	
46 	California 	CA 	206.0 	227.0 	433.0	
47 	Louisiana 	LA 	205.0 	226.0 	431.0	
48 	Alabama 	AL 	207.0 	223.0 	430.0	
49 	Mississippi 	MS 	205.0 	223.0 	428.0	
50 	New Mexico 	NM 	203.0 	223.0 	426.0	
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1 	Massachusetts 	MA 	273.0 	287.0 	560.0	
2 	Minnesota 	MN 	268.0 	291.0 	559.0	
3 	New Hampshire 	NH 	271.0 	286.0 	557.0	
4 	North Dakota 	ND 	270.0 	287.0 	557.0	
5 	Vermont 	VT 	271.0 	286.0 	557.0	
6 	Montana 	MT 	270.0 	286.0 	556.0	
7 	South Dakota 	SD 	270.0 	285.0 	555.0	
8 	Iowa 	IA 	268.0 	284.0 	552.0	
9 	Colorado 	CO 	268.0 	283.0 	551.0	
10 	Connecticut 	CT 	267.0 	284.0 	551.0	
11 	Wyoming 	WY 	267.0 	284.0 	551.0	
12 	Kansas 	KS 	266.0 	284.0 	550.0	
13 	Maine 	ME 	268.0 	282.0 	550.0	
14 	Virginia 	VA 	268.0 	282.0 	550.0	
15 	Wisconsin 	WI 	266.0 	284.0 	550.0	
16 	New Jersey 	NJ 	268.0 	281.0 	549.0	
17 	Ohio 	OH 	267.0 	282.0 	549.0	
18 	Nebraska 	NE 	266.0 	282.0 	548.0	
19 	Indiana 	IN 	265.0 	281.0 	546.0	
20 	Missouri 	MO 	267.0 	279.0 	546.0	
21 	New York 	NY 	265.0 	280.0 	545.0	
22 	Oregon 	OR 	264.0 	281.0 	545.0	
23 	Utah 	UT 	264.0 	281.0 	545.0	
24 	Washington 	WA 	264.0 	281.0 	545.0	
25 	Idaho 	ID 	264.0 	280.0 	544.0	
26 	Illinois 	IL 	266.0 	277.0 	543.0	
27 	North Carolina 	NC 	262.0 	281.0 	543.0	
28 	Pennsylvania 	PA 	264.0 	279.0 	543.0	
29 	Delaware 	DE 	265.0 	277.0 	542.0	
30 	Kentucky 	KY 	266.0 	274.0 	540.0	
31 	Maryland 	MD 	262.0 	278.0 	540.0	
32 	Michigan 	MI 	264.0 	276.0 	540.0	
33 	Texas 	TX 	259.0 	277.0 	536.0	
34 	Alaska 	AK 	256.0 	279.0 	535.0	
35 	South Carolina 	SC 	258.0 	277.0 	535.0	
36 	Oklahoma 	OK 	262.0 	272.0 	534.0	
37 	Rhode Island 	RI 	261.0 	272.0 	533.0	
38 	West Virginia 	WV 	260.0 	271.0 	531.0	
39 	Florida 	FL 	257.0 	271.0 	528.0	
40 	Georgia 	GA 	258.0 	270.0 	528.0	
41 	Arizona 	AZ 	255.0 	271.0 	526.0	
42 	Tennessee 	TN 	258.0 	268.0 	526.0	
43 	Arkansas 	AR 	258.0 	266.0 	524.0	
44 	Nevada 	NV 	252.0 	268.0 	520.0	
45 	Louisiana 	LA 	253.0 	266.0 	519.0	
46 	California 	CA 	251.0 	267.0 	518.0	
47 	Hawaii 	HI 	251.0 	266.0 	517.0	
48 	Mississippi 	MS 	255.0 	261.0 	516.0	
49 	Alabama 	AL 	253.0 	262.0 	515.0	
50 	New Mexico 	NM 	252.0 	263.0 	515.0	
 
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Retired | Wausau, WI
Not the case with Texas. They have plenty of room for a major population growth. Texas does not have a state income tax, but they do have a higher sales tax than WI. They also have vehicle inspections that we do not have to help pay for the highway upgrades. It's kind of a pay as you go state and they have the population to generate the income. The population of WI is not as large as the DFW area so they tax us to death for our services.
 

JHZR2

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Desnity-wise, yes. Go into any of the metro areas or places where the densities rival the population centers that tend to have very high taxes, and guess what? There is a lot of cost associated with PEOPLE. Infrastructure and people-handling costs $$$. Especially if you tie in a huge group of illegals and non-English speaking moochers. Point is, the article is far from accurate. NJ, for example, has consistently excellent schools other than in the most inner cities and poorest towns, as one would expect. The servces provided, for example, to special needs children are second to none, far better than NC, for example, where my wife had to work out of in med school. And contrary to the article, in lots of towns, people are moving IN. I love it that our town hasnt seen a price drop whatsoever. Youll find lousy areas everywhere, and youll find good areas everywhere. Higher population equals, given a distribution of people, more bad areas.
 
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Tempest

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 Originally Posted By: JHZR2
Desnity-wise, yes. Go into any of the metro areas or places where the densities rival the population centers that tend to have very high taxes, and guess what?
So you are saying that density CAUSES high taxes?
 
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 Originally Posted By: Solo2driver
 Originally Posted By: Johnny
This is one of the main reasons that I am thinking about moving from WI to TX.
DOOOO IIIT! Just not Houston. Houston (city limits) sucks, too much crime. Overall, happy with my move to TX aside from all things Houston.
Not to worry. It will either be North Texas, East Texas, or the hill country. Nowhere close to Houston, Dallas, or Ft. Worth.
 

JHZR2

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 Originally Posted By: Tempest
 Originally Posted By: JHZR2
Desnity-wise, yes. Go into any of the metro areas or places where the densities rival the population centers that tend to have very high taxes, and guess what?
So you are saying that density CAUSES high taxes?
Density causes the need to control and support the population. Somebody has to pay for all the kids in the schools, all the police, fire department... there likely are no septics or wells in high density areas - so then you get to pay for sewer and water... If the area is widespread with popualtion, you cant dump trash locally, what happens to it? With a denser area, there are more costs associated with operations, purely because there are more people. I highly doubt that the per person property tax (a made-up value dividing property tax by people on the "lot") in a high-rise apartment building is the same as the per-person property tax in single homes in a more spread-out area. What happens then? A shortfall? Who makes up for the supposedly "deserved" services such as water, sewer and trash removal, let alone schools?
 
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 Originally Posted By: Johnny
Texas does not have a state income tax, but they do have a higher sales tax than WI.
Property taxes also seem to be higher, but I suppose that's dependent on the specific county/location.
 

JHZR2

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Then again, there are also mismanaged areas... When I lived in Auburn, AL, there was a >8% tax on EVERYTHING. NJ at the time had 6%, and only on non-necessities (has since gone to 7%). NC, another state that many claim is so great, had a 7% tax on everything, including necessities, when my wife lived there. Meanwhile, we have some of the lowest gas taxes in the country, and NJ has far cheaper gas than AL or NC does, by a long shot. What they don't get you for one way, they do another. What is so great about that??? NC supposedly has great "growth"... but taxes to death too. AL the same... and they don't nearly have the same level of any public infrastructure that we do in NJ.
 
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in TN, we have a 9.25% sales tax on everything including food. We do not have a state income tax, but we have a state lottery. :)
 
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Unless you want to live in an arm-pit of a city, you have to pay taxes for all those services. FL does not have a state income tax nor do we vehicle inspections and property taxes are low.... I hate to say this, but in a few years I'm getting out of this rectum of a state called FL. \:\(
 
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Rating the quality of schools as a state average is pointless. We have the best and the worst school of the nation within 30 miles of each other. Why? It is the students and the parents that make the school, not how much money you throw at it. This is reflected in the home price.
 
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