A bit of context about Texas/DFW property taxes and state and local tax burdens.....

[synchronicity]

Originally Posted by EDS_

These numbers matter a lot here in DFW because they go part way towards explaining our professional set has such high after tax/COL adjusted/discretionary incomes. These things greatly impact home buying power.

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https://www.dallasnews.com/business/...ns-taxes-texas

FWIIW these numbers are very fresh accounting for nearly all of our recent RE value increases.

1. Texas has the 34th highest overall state and locally imposed tax burdens (including property taxes) at 7.99%.
In order of population....
CA - #10 @ 9.52%
TX - #34 @ 7.99%
FL - #45 @ 6.70% (the authors did not account for some of FL's small business taxes which act as de-facto income taxes on many owners so this number is a little dubious - although no question FL is a low tax state).
NY - #1 @ 12.94%
PA - #24 @ 8.52%
OH - #13 @ 9.15%
GA - #32 @ 8.20%
NC - #28 @ 8.33%


2. Texas ranks 15th highest on the property tax list. Not in the top few as is so often claimed/implied around here.

3. Last year Texas was a massive net donor to the federal government - for every $1 sent the state got back $0.57.

4. In 2014 - latest data, Texans earning $100,000K, totaling about 16% of taxpayers, paid 69.5% of the state's federal tax burden.
Those earning over $1,000,000 paid 27.2% of the burden - so much for the rich not paying federal income taxes.

On the last bit, you also need to show percentage of income to show the extent to which "the rich" are paying their "fair share". If those earning over $1,000,000 had 30% of all income but only paid 27.2% of all taxes, then it's a different discussion.

Having said that, I am aware that the top X% earn a smaller percentage of total AGI (they might only earn 17% of all income and pay 27.2% of all federal income taxes or whatever) than the taxes they pay, but then I regularly pull data from SOI. You may already know this, but effective federal income tax rates actually top out around 1-1.5M AGI, and then decline at AGI levels above that to $10M plus. Also, the effective tax rate for the top 400 in AGI has generally been declining over the last 15 years and I believe is lower than the rate for the 1-1.5M AGI taxpayers. But that's another interesting dicussion.

[lepoisson]

Originally Posted by EDS_

I think the six axel truck MTA bridge toll is $125. Anyone who thinks that does not cause cost-push price inflation across a number of products - including food - is out of their minds.

Yeah, and unlike in DFW, you cannot avoid paying the toll. I don't even think you can access Manhattan unless you pass through a toll.

[Soonhun]

I was not aware that municipalities had the power to collect income tax. That is interesting.

[EDS_]

Originally Posted by Parhe

I was not aware that municipalities had the power to collect income tax. That is interesting.

https://www.thebalance.com/cities-th...-taxes-3193246

San Francisco has a 1.50% city income tax as well. I'm sure there are others.

[EDS_]

Originally Posted by synchronicity

On the last bit, you also need to show percentage of income to show the extent to which "the rich" are paying their "fair share". If those earning over $1,000,000 had 30% of all income but only paid 27.2% of all taxes, then it's a different discussion.

Having said that, I am aware that the top X% earn a smaller percentage of total AGI (they might only earn 17% of all income and pay 27.2% of all federal income taxes or whatever) than the taxes they pay, but then I regularly pull data from SOI. You may already know this, but effective federal income tax rates actually top out around 1-1.5M AGI, and then decline at AGI levels above that to $10M plus. Also, the effective tax rate for the top 400 in AGI has generally been declining over the last 15 years and I believe is lower than the rate for the 1-1.5M AGI taxpayers. But that's another interesting dicussion.

Tagged for later........good post.