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Old 11-13-2014, 08:10 PM
 
Location: Fishers, IN
6,498 posts, read 10,184,727 times
Reputation: 4003

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Quote:
Originally Posted by Knox Harrington View Post
That's quite a conundrum, isn't it? Both houses are overwhelmingly Republican and we have a "Tea Party" governor (with eight years of Republican governorship before him) and there is still no talk of lowering taxes. You know, nothing from the "party of lower taxes and less government." I guess it just sounds good for campaigns.

Nothing.

Taxes are too high in this state.

Registered a new car lately? Get ready to be raped. They then have the gall to tell you your excise taxes would be double if it weren't for the state lottery.

Look at Tennessee. They are a comparable state and their residents don't seem to get raped at the level we do.
You are quite incorrect. Gov. Pence speaks often of lowering taxes for his business friends.

According to this, Indiana ranks #33 (1 having highest burden, 50 the lowest burden). Tennessee comes in at 50; so, by that measure, every other state may seen high compared to Tennessee.

http://money.cnn.com/pf/features/lists/total_taxes/

Last edited by grmasterb; 11-13-2014 at 08:19 PM..
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Old 11-13-2014, 10:34 PM
 
1,475 posts, read 1,856,602 times
Reputation: 1575
Quote:
Originally Posted by baileyvpotter View Post
^^^Point is that in Indiana you can receive a credit $2,500 for property taxes and $3,000 for RENT = paying less to the IDR.
It's less to the IDR, but it's not what you're saying it is:

1) property tax is a deduction, not a credit. A credit would reduce your state income tax bill by up to $2500. A deduction merely reduces your state income tax bill by your tax rate x $2500. If your rate is 5%, then you're only getting a $250 tax bill deduction.

2) you can only take the property tax deduction on property that you own and use as your primary residence, so it's not like the landlord on a property gets the deduction for $2500 and the tenant gets the deduction for $3000 on the same place.

Net, the deduction is less money to the IDR, but its a pretty meaningless figure in the scheme of things.

FWIW, here is a site that attempts to blend all forms of taxes for each state. It then compares the effective blended state rate for non-elderly families to see who is actually getting taxed the most.

Families in bottom 20%: IN is 7th highest
Families in second 20%: IN is 5th highest
Families in middle 20%: IN is 7th highest
Families in fourth 20%: IN is 5th highest
Families in next 15% (81 to 95th percentile): IN is 10th highest

http://www.itep.org/pdf/whopaysreport.pdf
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Old 11-14-2014, 04:45 AM
 
Location: Fishers, IN
6,498 posts, read 10,184,727 times
Reputation: 4003
Quote:
Originally Posted by Chicago76 View Post
It's less to the IDR, but it's not what you're saying it is:

1) property tax is a deduction, not a credit. A credit would reduce your state income tax bill by up to $2500. A deduction merely reduces your state income tax bill by your tax rate x $2500. If your rate is 5%, then you're only getting a $250 tax bill deduction.

2) you can only take the property tax deduction on property that you own and use as your primary residence, so it's not like the landlord on a property gets the deduction for $2500 and the tenant gets the deduction for $3000 on the same place.

Net, the deduction is less money to the IDR, but its a pretty meaningless figure in the scheme of things.

FWIW, here is a site that attempts to blend all forms of taxes for each state. It then compares the effective blended state rate for non-elderly families to see who is actually getting taxed the most.

Families in bottom 20%: IN is 7th highest
Families in second 20%: IN is 5th highest
Families in middle 20%: IN is 7th highest
Families in fourth 20%: IN is 5th highest
Families in next 15% (81 to 95th percentile): IN is 10th highest

http://www.itep.org/pdf/whopaysreport.pdf
And for the benefit of the OP, Tennessee also is identified in this report as one of the top 10 most regressive tax states.
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Old 11-14-2014, 05:53 AM
 
4,851 posts, read 4,309,644 times
Reputation: 7148
Quote:
Originally Posted by Chicago76 View Post
It's less to the IDR, but it's not what you're saying it is:

1) property tax is a deduction, not a credit. A credit would reduce your state income tax bill by up to $2500. A deduction merely reduces your state income tax bill by your tax rate x $2500. If your rate is 5%, then you're only getting a $250 tax bill deduction.

2) you can only take the property tax deduction on property that you own and use as your primary residence, so it's not like the landlord on a property gets the deduction for $2500 and the tenant gets the deduction for $3000 on the same place.

Net, the deduction is less money to the IDR, but its a pretty meaningless figure in the scheme of things.

FWIW, here is a site that attempts to blend all forms of taxes for each state. It then compares the effective blended state rate for non-elderly families to see who is actually getting taxed the most.

Families in bottom 20%: IN is 7th highest
Families in second 20%: IN is 5th highest
Families in middle 20%: IN is 7th highest
Families in fourth 20%: IN is 5th highest
Families in next 15% (81 to 95th percentile): IN is 10th highest

http://www.itep.org/pdf/whopaysreport.pdf
Well thank you for all that information. Credit or deduction, I took it. Every little bit counts, especially
when I've owned 2 homes with an interest rate of 9.5% (which was the going rate at that time).
Just curious, do you live in Indiana?
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Old 11-14-2014, 06:23 AM
 
Location: Fishers, IN
3,640 posts, read 3,967,905 times
Reputation: 3688
Quote:
Originally Posted by UKWildcat1981 View Post
Why do people here on this forum say Indiana is more conservative or as conservative as much of the South, is it really that politically and social conservative? I never thought it was but I never lived in IN so I could be wrong, I know OH, WI, MN and MI are much more socially liberal than the South.
Possibly because as far as national elections, especially presidential elections, Indiana can always be counted on to vote Republican. In fact, 2008 Indiana went for Obama, the first time Indiana went Democrat in a presidential election since the 1960s.
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Old 11-14-2014, 09:29 AM
 
Location: Johnson City, TN
18,746 posts, read 13,414,362 times
Reputation: 20764
Quote:
Originally Posted by grmasterb View Post
And for the benefit of the OP, Tennessee also is identified in this report as one of the top 10 most regressive tax states.
Sales tax is regressive, but because the state is so narrow, it's easy to make large purchases in a lower tax state. I've done most of my shopping in Virginia.
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Old 11-14-2014, 10:21 AM
 
Location: Englewood, Near Eastside Indy
8,013 posts, read 13,043,943 times
Reputation: 5402
Quote:
Originally Posted by Emigrations View Post
Sales tax is regressive, but because the state is so narrow, it's easy to make large purchases in a lower tax state. I've done most of my shopping in Virginia.
Do you think people in Nashville drive to Bowling Green and/or Hopkinsville to do make large purchases? Didn't you live right off the border? That would be like me saying, "yeah, when I lived in Evansville I could drive to Kentucky to buy things because the state is not wide."

Last edited by Toxic Toast; 11-14-2014 at 11:00 AM..
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Old 11-14-2014, 03:34 PM
 
1,475 posts, read 1,856,602 times
Reputation: 1575
Quote:
Originally Posted by baileyvpotter View Post
Well thank you for all that information. Credit or deduction, I took it. Every little bit counts, especially
when I've owned 2 homes with an interest rate of 9.5% (which was the going rate at that time).
Just curious, do you live in Indiana?

Every little bit certainly helps, although if they didn't offer that deduction (or they reduced it), they'd have to increase something else. They'll get it one way or the other.

No, I no longer live in Indiana. Grew up there though and enjoy trips home with nothing at all against the state. I picked up on taxes working for a Big 4 accounting firm for many years.

IMO, state tax differences when it comes to attracting business or people is pretty inconsequential. Jobs don't move to TN or TX because they're necessarily cheap. Maybe at the very low end industries that are ultra competitive where margins are 3-6% does it make a difference. The jobs at those companies a pretty low wage too. On the personal side, most states are going to be in a range of 2-3% of one another.

That's nothing. Would you move to a place for a 10% raise and a 2-3% state tax savings if your cost of living was 15% higher and your commute 15-20 minutes longer than your current 20 minute commute to live in a similar neighborhood? The tax rate figures into the equation, but just barely. Not nearly as much as what the job pays, COL, and commute time IMO.
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Old 11-16-2014, 11:54 AM
 
5,169 posts, read 6,324,319 times
Reputation: 2472
Quote:
Originally Posted by Knox Harrington View Post
We have great state parks, but you better be ready to pay for them. Fees are out of line with other Midwestern states like Missouri that also have great state parks. $26 a night for a campsite with no water? Oh, and you also charge $5 just to enter the park ($7 for out-of-state residents)? What a deal!
Have you camped at a Michigan state campground lately?
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Old 11-16-2014, 12:49 PM
 
Location: Johnson City, TN
18,746 posts, read 13,414,362 times
Reputation: 20764
Quote:
Originally Posted by Knox Harrington View Post
That's quite a conundrum, isn't it? Both houses are overwhelmingly Republican and we have a "Tea Party" governor (with eight years of Republican governorship before him) and there is still no talk of lowering taxes. You know, nothing from the "party of lower taxes and less government."

Nothing.

I guess it just sounds good for campaigns.

Taxes and fees are too high in this state for what we have.

Registered a new car lately? Get ready to be raped. They then have the gall to tell you your excise taxes would be double if it weren't for the state lottery.

We have great state parks, but you better be ready to pay for them. Fees are out of line with other Midwestern states like Missouri that also have great state parks. $26 a night for a campsite with no water? Oh, and you also charge $5 just to enter the park ($7 for out-of-state residents)? What a deal!

Look at Tennessee. They are a comparable state and their residents don't seem to get raped at the level we do.
I am as Republican as it gets, and from my limited time in this state, the Republicans are not small government, tax lowering conservatives. Other than a lot of pro-life signs, I'd have no idea this was a Republican state by looking at tax data.

Okay, so they are lowering the income tax by some negligible amount? Counties pile on the income taxes too. I really don't mind paying 1% to Hamilton County, as I feel I get something back for it, but I don't feel like I get jack from the state, and I'd be even more POed if I lived in some podunk rural county where the rates were even higher.

I can't imagine IN being that generous with welfare benefits, the economy here is better than down South, and I don't see where especially little rural counties would have tons of expenses to need the revenue. Do they just collect next to nothing from property taxes? I guess there is no local sales tax here? It just seems the revenue is being raised, but where it's actually being spent is far from clear.

The state and local income taxes cost me about $200/month over what I'd pay in FL, TN, or TX. Granted, my income doubled moving up here (probably near tripled if you count PTO and benefits), but the payscale difference between TN and IN is probably not going to be that significant for most people, and the $200/month can be a lot to some folks.
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