Leaning towards a move...calculating taxes (sales, homes, unemployment rate)

[garabuli]

Hello everyone:

My appreciation goes out to everyone for all of their insight the past few weeks, and I am leaning towards a move to California from Texas.

Here are a few of my questions:

(1) The local government where I will be working does not participate in Social Security, so what taxes will I still end up paying and what will be my estimated cost for a family of three?

(2) Also, the state income tax that one pays is based on salary, so for a salary of any salary over $40,346 there is a 9.3% tax.

If my salary is 70k, then I would have to pay $6,510 in income tax?

That is quite a bit considering in Texas we have no state income tax.

I know living in California is nice, but the income tax rate doesn't really bring me any really sunshine.

(3) If I am making 61k in Texas, I am better off than I would be in California, except for some excellent benefits by my future employer.

How does one make it in Cali, it seems very hard, and add on top of that the federal taxes.



[SIZE=1]If your income range is $40,346 and over, your tax rate on every dollar of income earned is 9.3%[/SIZE]

[firetraq]

I think that state income rate is crazy, basically someone making $999,999 will pay the same percentage as me is BS. But consider that you'll probably get money back at tax time from the state, unless i am mistaken, which i oftentimes am.

[bhcompy]

Originally Posted by garabuli

How does one make it in Cali, it seems very hard, and add on top of that the federal taxes.

for native californians like me, its all we've ever known, so its not a big deal. for people coming in, depending on where they are coming from, it can be a problem.

one thing to keep in mind though is that the government always gets their money. if its not from income tax, its from sales tax or property tax. california is above average overall but still balanced despite its higher than average income tax rate because the property taxes are reasonable and the sales tax isnt too bad either.

for example: property taxes here may be more in $, slightly(per taxfoundation.org we're 10th and texas is 14th), but in relation to the value of the homes and in relation to the median income, its much different. california ranks in the lowest 15% in both while texas is 1st(highest) in property tax paid as a % of home value and in the top 20% in property tax compared to the median income. so texans pay more of their income in a %(and more in a % of the value of their home) towards property tax than californians.

you'll probably pay more of your income as a % towards taxes and government fees, but the difference may not be as much as you think after all is said and done.

[ConsideringLA]

Yes, 9.3% income tax in Cali (+ 1.1% property if you own a place + 8.25% LA County sales tax).

Unless your job has an exemption, social security is a federal tax...

[bhcompy]

Originally Posted by firetraq

I think that state income rate is crazy, basically someone making $999,999 will pay the same percentage as me is BS. But consider that you'll probably get money back at tax time from the state, unless i am mistaken, which i oftentimes am.

why should someone making 999,999 be taxed at a different rate than you are?

[ConsideringLA]

Originally Posted by firetraq

I think that state income rate is crazy, basically someone making $999,999 will pay the same percentage as me is BS. But consider that you'll probably get money back at tax time from the state, unless i am mistaken, which i oftentimes am.

firetraq: ever worked for a poor person? me neither. I want jobs and an economy that rewards smart, hardworking business owners. If we penalize success, how does that foster innovation?

even with today's crisis, the US unemployment is far below socialized countries -- this is mainly because our tax system, as out of whack as it is, does not penalize high earners as much as other countries.

Still, the rich still pay the majority of taxes in this country.

[firetraq]

Originally Posted by ConsideringLA

firetraq: ever worked for a poor person? me neither. I want jobs and an economy that rewards smart, hardworking business owners. If we penalize success, how does that foster innovation?

even with today's crisis, the US unemployment is far below socialized countries -- this is mainly because our tax system, as out of whack as it is, does not penalize high earners as much as other countries.

Still, the rich still pay the majority of taxes in this country.

Considering, dont be silly, the rich only make up about what 10% of this country and thats being generous, it is the middle class that pays the most in taxes.

I am in favour of taxes, but i think the cap is too low, i think the top 9.3% should be levied at $100k and not stop at $45k i think it is.

perhaps i'm just a socialist or something.

You are completely wrong about the unemployment rate, America's is above 6%, the UK's is at 5.5%.....

[LArenter]

While we are on the subject of taxes, it could very well get uglier very soon - Right now we have 1.1% for property taxes (on inflated value homes -- especially for those who recently just purchased, e.g. me), then if Prop M passes the 8.25% sales tax goes to 8.75%. Then if Obama gets elected he's raising the capital gains/dividend taxes to 20% for those who make over $250k. and the top tiers of federal income taxes go from 33% and 35% to 36% - 39%, oh and I forgot the california state income taxes.

I don't know about you, but this is a whole lot of taxes.

But look on the bright side, at least we don't have a city tax like NYC.

[bhcompy]

california has 6 tax brackets. the brackets are setup for the poor to have lower tax rates. would you rather tax the poor more and move those brackets up?

anyways, most states have less than 6 tax brackets. by my count only 8 have more than 6 tax brackets. its not like california is backwards in your thinking.

and on unemployment, the uk isnt a typical example of a country with more socialist leanings. france, belgium, and canada may be better examples. they also have significantly more unemployment

[EscapeCalifornia]

The problem with CA's highly progressive tax rates is that you get into the top marginal rate really quick.