Carl's Jr wants to move its Headquarters (how much, calculator)
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came in and wanted to apply for a Business Tax Registration certificate(BTRC), required of all business' located within the City of Los Angeles. He was opening a new store in downtown LA. He expressed frustration and said "I had no idea how much it costs to open a business here."
I find it interesting that the particular store in DTLA, on Alameda, has done ok and is still in business now 10-11 years later. But Farmer Boys, despite huge expansion during that time period, has yet to open another location within City of LA.
Why am I unable to do this now? Because of an oppressive tax structure and cost of living .. (mainly tax structure) that prevents me from truly enjoying the labors of my work ...
Because you're not able to do it now. California has numerous low cost areas and though its taxes are high, total taxation isn't dramatically higher in California than other states. 1~2% isn't preventing you from "truly enjoying the labors of your work".
I find it interesting that the particular store in DTLA, on Alameda, has done ok and is still in business now 10-11 years later. But Farmer Boys, despite huge expansion during that time period, has yet to open another location within City of LA.
That is weird, they are circling LA city but only one in the actual city. I can't think of any good that would be done..other than avoiding LA city.
Because you're not able to do it now. California has numerous low cost areas and though its taxes are high, total taxation isn't dramatically higher in California than other states. 1~2% isn't preventing you from "truly enjoying the labors of your work".
Because I choose not to do it now (due to the diminishing returns of doing so)... Can you back your 1-2% claim? Further, its not about the money, its the principal of the matter. Money matters though and is far more than 1-2% (see the simple income tax rate above $40k 9.25% ...) .. Every time I do more (make more income) .. I get dinged for it in this state (income tax) .. If I decide to purchase something .. I get dinged for it again (9.25% sales tax) .. If i decide to get a nice car.. I get dinged for it (EVERY YEAR). If i decide to open an LLC here (Oh god help me) .. If i decide to invest in real estate property outside the state .. Bam, I get dinged for it here (9.25% income tax) ... Finally, I can't buy a nice house .. because hey, they cost about a million bucks
So, its clear .. Don't work hard .. the sun is out .. the coast is beautiful .. there is good snow pack .. save money (capital accumulation) .. Don't spend it here. Enjoy everything CA has to offer (I most definitely am).. and leave when you want to spread your business wings... Take your money (pocket) and (tax deferred shelters) with you.
P.S - The low cost areas of California are noisy, far from everything, crime ridden slums ... The reason I got an education and made something of myself was so I didn't have to continue living in such places. No thanks.
Last edited by yeahthatguy; 03-23-2011 at 04:37 PM..
Location: San Luis Obispo and Santa Barbara Counties
6,391 posts, read 2,809,774 times
Reputation: 2622
Quote:
Can you back your 1-2% claim?
Sure, lets take Texas as an example of a low tax state, total tax burden is about 9.5 % of income.
California, a high tax state, total tax burden is about 10.5%.
If you live in Texas, you have paid all your taxes with the income you produce between January 1 and April 5.
If you live in California it will take you a whopping 9 days longer.
Other low tax states,
Maine, April 4
New Hampshire April 6
North Dakota, April 3
Nevada, April 2
As you can see, cutting those days out of the 365 in a year, not much real difference.
Now, it is true that taxes are higher in California. Here, a short story for you. Some years ago a friend of mine was the accountant at Squaw Valley USA, he made about $10,000 less per year than if he was doing the same job in the Bay area, as he explained, it was worth $10,000 a year to live in Squaw Valley.
Take that to heart, you will save on your taxes (a wee bit) if you live in Texas, the downside is, you live in Texas, and if you ever have kids, they will be in school in Texas.
Some people don't much care where they live, that is why there is Texas.
Last edited by .highnlite; 03-23-2011 at 04:46 PM..
Comparing tax burden between states is a moot point when expenditure isn't being addressed. i.e. How much tax money is spent on services that are aimed to benefit the taxpayer themselves?
Consider that as of 2009, the Census Bureau reported that California has a population of 36,961,664 while Texas has 24,782,302.
Tax Foundation published their survey findings on how much money per capita each taxpayer is paying to their state.
California's (http://www.taxfoundation.org/files/sl_burdens_california-20110223.pdf - broken link)per capita to the state in 2009 is $3,874. In comparison, Texas (http://www.taxfoundation.org/files/sl_burdens_texas-20110223.pdf - broken link)is $2,248.
Yet, with California's population being larger than Texas by 12,179,362 -- one would think that the extra tax revenue due to the higher population of taxpayers, right?
Wrong. Explain why California has a budget deficit of 26.6 billion dollars. Where is our tax money going to?
Sure, lets take Texas as an example of a low tax state, total tax burden is about 9.5 % of income.
California, a high tax state, total tax burden is about 10.5%.
Back this claim by showing the tax implications in CA vs. TX for someone who makes $100k a year and (single-income not married) .. Here, I am giving you a head start :
Income tax
CA
2010 Tax Calculator
Your tax is $ 7,257
No income tax state (i.e TX) :
$0 ...
As you start to scale out :
> Own rental property that produces income
> Conduct investments
This big difference becomes an issue. As for property tax. it's a percentage of the home's value... so, while texas' property taxes are higher. the home's values aren't insane like CA.. so your average person in CA would most probably pay more property tax.
----------------------------------
Quote:
Originally Posted by .highnlite
If you live in Texas, you have paid all your taxes with the income you produce between January 1 and April 5.
If you live in California it will take you a whopping 9 days longer.
Other low tax states,
Maine, April 4
New Hampshire April 6
North Dakota, April 3
Nevada, April 2
As you can see, cutting those days out of the 365 in a year, not much real difference.
Now, it is true that taxes are higher in California. Here, a short story for you. Some years ago a friend of mine was the accountant at Squaw Valley USA, he made about $10,000 less per year than if he was doing the same job in the Bay area, as he explained, it was worth $10,000 a year to live in Squaw Valley.
It's a person to person situation thus why random foolish summaries (tax burdens) don't apply ... The (tax burden) calculation considers all ranges of income .... Which generally, only until you start working hard does the tax burden become (not just 1-2%) .. In the general case, your tax burden reference (maybe true) .. have yet to see a link to the data but I am not the general case.. I make over six figures and another bulk of cash from trading/investing (which I can do anywhere in the U.S) .. Further, I am aiming to start an LLC and engage in rental investments... At that point, I am perfectly slaughtered in this state and no.. it's not a difference of 1-2%.
Quote:
Originally Posted by .highnlite
Take that to heart, you will save on your taxes (a wee bit) if you live in Texas, the downside is, you live in Texas, and if you ever have kids, they will be in school in Texas.
Some people don't much care where they live, that is why there is Texas.
It's not a wee-bit for me or anyone who makes a considerable amount of income .. It is for someone who doesn't. As for schooling.. LOL : california comparison
California continues to rank at the bottom for (K-12) .. So, i'd have no problem sending my kids to school in TX... But I am from FL, so I am much more interested in that .. From my direct experience (great schooling.. ), my kids will be just fine.
Location: San Luis Obispo and Santa Barbara Counties
6,391 posts, read 2,809,774 times
Reputation: 2622
That is not the fellows problem, he is complaining about how much more he pays in California compared to living in some other state.
He think he will free up a pile of money by paying less taxes somewhere else, which is a belief unsupported by the data.
If you want to discuss where expenditures go, that is a different subject.
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