[hitek]

Here's an interesting article that talks about the best income growth in the state from the area. It states that the New Haven area is the second most expensive area in the state next to Fairfield County. It also states that New Haven also has a higher cost of living than the Boston metropolitan area, which is kinda surprising to hear. Here's the article: New Haven Area Had Best Income Growth In State, But Hartford More Affordable - Courant.com

Any thoughts?

[mikelizard860]

Originally Posted by hitek

Here's an interesting article that talks about the best income growth in the state from the area. It states that the New Haven area is the second most expensive area in the state next to Fairfield County. It also states that New Haven also has a higher cost of living than the Boston metropolitan area, which is kinda surprising to hear. Here's the article: New Haven Area Had Best Income Growth In State, But Hartford More Affordable - Courant.com

Any thoughts?

New haven is very expensive. I have a hard time believing it's more expensive than Boston.

[NewJeffCT]

New Haven is surrounded by pricey suburbs like Orange, Woodbridge, Bethany, Cheshire, Madison and Guilford. If you go beyond that, you get into Shelton, Milford, Clinton, Durham, etc. Madison is more expensive than Avon, Simsbury, etc in the Hartford area.

Hartford's pricey suburbs are Simsbury, Avon, Farmington, West Hartford and Glastonbury. You go beyond that, towns like Canton, South Windsor, Granby, Burlington, etc, are smaller and less pricey than those beyond New Haven's inner circle.

[mikelizard860]

Originally Posted by NewJeffCT

New Haven is surrounded by pricey suburbs like Orange, Woodbridge, Bethany, Cheshire, Madison and Guilford. If you go beyond that, you get into Shelton, Milford, Clinton, Durham, etc. Madison is more expensive than Avon, Simsbury, etc in the Hartford area.

Hartford's pricey suburbs are Simsbury, Avon, Farmington, West Hartford and Glastonbury. You go beyond that, towns like Canton, South Windsor, Granby, Burlington, etc, are smaller and less pricey than those beyond New Haven's inner circle.

Madison, ct is only super expensive ON THE water. Big money types from nyc buy vacation homes on the water there. It's a lot cheaper than the hamptons. That throws off the average price obviously.

[EricS39]

One thing that I think is not taken into account very well in Connecticut is when higher costs of living are matched with higher wages, this hits the hard-working middle class with taxes that were intended for the wealthy.

The marginal tax brackets on the 1040 forms, in addition to CT state taxes....are insensitive to the fact that the cost of living is so high here.

This is a scientific truth. If wages and prices are higher than elsewhere, but only the wages are included in income tax base, and the bills piece is not deductible from taxes since they aren't business expenses.... Then the impact is tax overkill...almost nightmarish

Almost to the point you need so much wage hike to manage personal expenses that by Federal standards, you are considered "wealthy taxpayer" and yet you are barely able to make ends meet. This is really harsh

[NewJeffCT]

Originally Posted by mikelizard860

Madison, ct is only super expensive ON THE water. Big money types from nyc buy vacation homes on the water there. It's a lot cheaper than the hamptons. That throws off the average price obviously.

True - it's super expensive by the water, but we strongly considered Madison when we moved from Avon, and found that only in north Madison near Durham were prices comparable for reasonably new homes in a subdivision style setting. Once you got into central Madison and closer to 95, it was definitely more expensive.

[EricS39]

I think there needs to be a provision in the tax code "both federal and state" that allows expenses for personal items that are above the national average, to be deductible against wage income. This is justice

New Haven taxpayer:

$60,000 taxable income
$35,000 in non-deductible rent, utilities, food and groceries

Disposable income after taxes = about $5,000

Oklahoma taxpayer (same trade)

$40,000 taxable income
$15,000 in non-deductible rent, utilities, food

Disposable income after taxes = about $15,000

Note: This dilemma is then double-whammied with the fact that in addition to being ($15,000 - 5,000) = $10,000 dollars poorer in New Haven vs Oklahoma on the after tax basis, you can ALSO consume more with $5,000 disposable income in Oklahoma than $5,000 in New Haven based on CPI. So this goes beyond cost of living...

It is not just things cost more, but ALSO you are alotted less OF IT

Suppose New Haven person tries and alarmingly succeeds in getting their income up to $70,000 to try to make up the $10,000 shortfall, that still won't take care of it !!!...$3,000 of THAT goes to federal and state taxes. You would STILL be double-whammied yet still! You have yet still less disposable income than the $40K salaried Oklahoman AND as stated before, dollar per dollar whatever you do have is worth less than one who has that same disposable income in Oklahoma!

Solution: some portion of that rent and utility that is higher than the national average SHOULD be made deductible at the Federal level and also state level

[mikelizard860]

Originally Posted by EricS39

I think there needs to be a provision in the tax code "both federal and state" that allows expenses for personal items that are above the national average, to be deductible against wage income. This is justice

New Haven taxpayer:

$60,000 taxable income
$35,000 in non-deductible rent, utilities, food and groceries

Disposable income after taxes = about $5,000

Oklahoma taxpayer (same trade)

$40,000 taxable income
$15,000 in non-deductible rent, utilities, food

Disposable income after taxes = about $15,000

Note: This dilemma is then double-whammied with the fact that in addition to being ($15,000 - 5,000) = $10,000 dollars poorer in New Haven vs Oklahoma on the after tax basis, you can ALSO consume more with $5,000 disposable income in Oklahoma than $5,000 in New Haven based on CPI. So this goes beyond cost of living...

It is not just things cost more, but ALSO you are alotted less OF IT

New Haven person tried to get their income up to $70,000 to make up the $10,000 shortfall, but that still won't take care of it ...$3,000 of THAT goes to federal and state taxes. You would STILL be double-whammied yet still! You have less disposable income than the Oklahoman AND dollar per dollar whatever you do have is worth less than one who had that same disposable income in Oklahoma!

Solution: some portion of that rent and utility that is higher than the national average SHOULD be made deductible at the Federal level and also state level

How about the minimum wage be adjusted based on COL? Is is really fair to pay someone 8.75 an hour who lives in new haven area?(or anywhere in ct for that matter). Or how about just getting some rent control so you don't have to put too huge burden on all the businesses. Hell, we as tax payers already help pay walmart/fast food workers already since so many are on welfare. Why not just make the businesses pay their fair share.

[kidyankee764]

Originally Posted by mikelizard860

Madison, ct is only super expensive ON THE water. Big money types from nyc buy vacation homes on the water there. It's a lot cheaper than the hamptons. That throws off the average price obviously.

There is not a large NYC influence in Madison. That is more found in Old Saybrook, Clinton, Westbrook. Madison is very much a year-round community.

[Wilton2ParkAve]

One considerable flaw with the below--- no one at the $60k income level is paying anywhere near 33% in federal and state tax. Probably closer to 20% (16% at the Federal level and ~4% for CT. With these assumptions, that would leave about $12,500 in disposable income.

Originally Posted by EricS39

I think there needs to be a provision in the tax code "both federal and state" that allows expenses for personal items that are above the national average, to be deductible against wage income. This is justice

New Haven taxpayer:

$60,000 taxable income
$35,000 in non-deductible rent, utilities, food and groceries

Disposable income after taxes = about $5,000

Oklahoma taxpayer (same trade)

$40,000 taxable income
$15,000 in non-deductible rent, utilities, food

Disposable income after taxes = about $15,000

Note: This dilemma is then double-whammied with the fact that in addition to being ($15,000 - 5,000) = $10,000 dollars poorer in New Haven vs Oklahoma on the after tax basis, you can ALSO consume more with $5,000 disposable income in Oklahoma than $5,000 in New Haven based on CPI. So this goes beyond cost of living...

It is not just things cost more, but ALSO you are alotted less OF IT

Suppose New Haven person tries and alarmingly succeeds in getting their income up to $70,000 to try to make up the $10,000 shortfall, that still won't take care of it !!!...$3,000 of THAT goes to federal and state taxes. You would STILL be double-whammied yet still! You have yet still less disposable income than the $40K salaried Oklahoman AND as stated before, dollar per dollar whatever you do have is worth less than one who has that same disposable income in Oklahoma!

Solution: some portion of that rent and utility that is higher than the national average SHOULD be made deductible at the Federal level and also state level