Retirees: Maine One of Ten Tax Unfriendly States (Augusta: low income, apartment)

[mainegrl2011]

The newstory refers to the ten states as "tax hells" and "do not live here for your second act" list. Maine is No. 6 on the list. Much has been said on CD about the number of retirees in Maine....Any retirees or potential retirees heading for Maine want to offer your 2 cents worth?

tax-unfriendly-states-retirees: Personal Finance News from Yahoo! Finance

[dmyankee]

One more reason to continue the tax and regulation revolt. Vote the moonbats out!

[retiredtinbender]

Huh. Sounds familiar.

[OutDoorNut]

Originally Posted by mainegrl2011

The newstory refers to the ten states as "tax hells" and "do not live here for your second act" list. Maine is No. 6 on the list. Much has been said on CD about the number of retirees in Maine....Any retirees or potential retirees heading for Maine want to offer your 2 cents worth?

tax-unfriendly-states-retirees: Personal Finance News from Yahoo! Finance

Like lyme disease, black flies, rural drug abuse and burglaries, long dark winters, bad roads, high cancer reates, lack of jobs, air pollution, and ancient toxic waste from when Maine had a booming manufacturing sector--high taxes also help keep Maine from being an overrun, overdeveloped h___ hole like most of the rest of the country.

So gotta take the good with the bad.

Nothing's perfect.

[Nor'Eastah]

Originally Posted by OutDoorNut

Like lyme disease, black flies, rural drug abuse and burglaries, long dark winters, bad roads, high cancer reates, lack of jobs, air pollution, and ancient toxic waste from when Maine had a booming manufacturing sector--high taxes also help keep Maine from being an overrun, overdeveloped h___ hole like most of the rest of the country.

Hey -- Maine has no poisonous snakes!

[retiredtinbender]

Don't forget bedbugs.

[namder1]

no poisonous snakes???? Haven't been to Augusta lately, huh?!

[cebdark]

Originally Posted by retiredtinbender

Don't forget bedbugs.

<snork>

[Submariner]

Originally Posted by mainegrl2011

.... Any retirees or potential retirees heading for Maine want to offer your 2 cents worth?

That article is only valid to 'retirees' who have a much higher level of pension than is average.



I moved to Maine after I retired.

On my pension, living in Ct there was no way that I could support a family [even with my DW's p/t income it would have been impossible without already owning an apartment building and it's rental income].

We came to Maine for many reasons. One of which is the lower cost-of-living.

I do recognize that cost-of-livings vary across Maine. However most of Maine is rural and allows a lower cost lifestyle, which simply is not allowed in Ct. [Or in many other states].



Maine does have income taxes. However just like Federal income taxes there are brackets, and there are exemptions and deductions.

Even if you are in the highest tax bracket 100% of your income is still not taxed. The first bit of your income is made tax-free simply by using your personal exemptions and deductions.

Most retirees that I know live on SS or pensions, and not stock portfolios. SS income is exempted from income taxes in Maine. So the article does not apply to them.

The average pension is a low income. Again I do recognize that there are some Maine retirees whose pensions are well over $100k. But such is not the average retiree pension. If your pension is low, then you will not be paying income taxes. Regardless of how high the highest tax bracket's tax is.

If your focusing on retirees, the average retiree simply is not being hit hard in Maine by income taxes. SS is tax-free and most pensions are below the income limbo-pole.



Property tax gets brought up repeatedly.

There are areas of Maine where there are high levels of municipal services and locals pay high taxes for those services. These are generally more urban areas and generally more South, or coastal.

The majority of Maine is rural with very few municipal services. So most of Maine enjoys much lower taxes.



I have lived many other places before moving to Maine. In my experience, I could not live in any of those places for as in-expensively as I can live here.

There are cheaper places to live. But I have only heard of them.


To me, this article paints a picture which is not accurate for most retirees. It was published in an investments magazine. It's intended readership are wealthier people, whose stock portfolio gives over $100k/annum. They are looking at living in an exclusive community across the road from David Rockefeller, their outlook on these topics is different than what I see among most fellow retirees that I have known who are moving to Maine.

[mainegrl2011]

Hi forest beekeeper: Thanks for taking time to write such a thoughtful response. I agree it is important to consider the source. It seems that your retirement choice is working for you. Instead of quoting your 2 cents worth and taking up all that space, I'll just respond. What amount (range) do you consider an average pension? Yes, the article states that social security benefits are exempt. It also says that after a $6,000 pension exemption, remaining pension income in excess of $20,150 is taxed at 8.5%. The article listed state tax rate 2%-8.5%. It would appear that the $20,150 amount is taxed at the highest rate of 8.5%. I don't consider a $20,150 taxable pension amount the income of the wealthy--do you? I seriously doubt that anyone with that amount of taxable pension income would be living across from any of the Rockefellers. Also, if retirees choose to rent rather than have a mortgage interest deduction, they miss out on that deduction. So...do you think 8.5% is high on taxable amounts greater than $20,150?