Posted on 01/17/2020 7:17:12 AM PST by ConservativeMind
It is a question of freedom. In states with no income tax, individuals have greater freedom of choice. The individual decides where he spends his money and does not pay for others. My property taxes are not significantly higher than mine were in Maryland in the ‘90s. I live in a “red” county, no County wide elected DemocRATs and only 1 statewide elected dmocRAT.
While NH has no income tax on W-2 wages, they do tax dividends, interest and royalties. So, if you’re thinking of a retirement move and plan to live off the earnings from sound investments, NH is NOT the place to go to.
Good for retirees. If you withdraw from your 401ks no state tax makes a difference.
I worked for Texas Instruments at one point and Hewlett Packard. In both cases if I moved to New York to take a same level job, I would have gotten all of the moving stuff and a 40 - 45% bump in pay. Both times I turned it down because all things considered I would have been losing 5 - 10% in value.
I grew up there, wanna retire where it’s warmer.
But those taxes aren’t really greater than what other states have for (active) income and sales.
But I’m originally from NY and it was a way to get back with my family and friends without having to move back to Brooklyn. That part was worth it completely the cost of LI was not.
That’s the thing. The money for government has to come from somewhere. A lot of states with no income tax make it up through property taxes. Not sure which is best....or worse.
I’m a divorced guy with a fairly high wage and I moved to FL a year ago to save on income taxes. It depends on a lot of different factors as to whether you’re better off in a state with low income tax/high other taxes or the reverse. In my case I get harmed a lot more by high income taxes than property or sales taxes. I’m not a big spender locally so sales taxes don’t really bother me, and FL doesn’t tax food anyway which is probably 50% of my out of pocket spending. Meanwhile my old state was costing me about $15,000 a year in income taxes, I have to buy a lot of stuff to make up for that. Property taxes aren’t low in FL but I don’t have a lavish place so they’re not bad for me. If I had to have a fancy pad on the water I’m sure they’d hurt.
You have to look at it as a whole to see what works for you. If your yearly salary isn’t very much then you’ll come out better in a state with an income tax and low other taxes, effectively shifting the tax burden from yourself to the higher earners. If you have a higher salary then it’s better to be in a state that doesn’t tax income, it really starts to add up as I can attest. There’s a reason so many high earners with multiple residences have one in Florida or Texas that they claim as their primary home.
What state did you move to Florida from?
Not criticizing you, just pointing out the economics that contributed to your original statement.
Where I live, there is state income tax, sales tax, property tax, & not sure what else. I am on Soc. Sec.,pay no income tax. I have a property tax exemption, but still am stuck with sales tax. Of course, if you don’t spend much on taxable items then there isn’t a lot of sales tax. When I was paying state income tax, I ended up not paying much, but that property tax was the real problem. It was very high, all other things considered. Income tax was at least based on income, but there were no such restrictions on property tax; it had nothing to do with available income. It was/is possible to get taxed out of your property & that’s just plain wrong.
It is amazing. Limited sources of income to the state government result in a frugal, efficient, and limited state government. High property taxes fund local government and schools, but the direct relationship between expenses and your tax bill helps keep spending in check, and citizens involved in their local government.
The biggest problem in New Hampshire is liberals from other states who come here to escape Massachusetts, or New York, or Connecticut and promptly start agitating for exactly the same kinds of policies that created the messes they left.
No argument here!
Mississippi
I read the entire article. It is infantile in presenting the case and data.
If this is news it is at a third grade level.
NP:-)
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.