Maine: High taxes and low wages (Washington: sales, insurance, credit)

[Petertherock]

There is an article in the Sunday Telegram today about Maine's tax burden and earnings. Maine ranks 44th out of 50th in wage earnings at $35,700...Montana is the lowest at $32,700.

Earnings per worker rose nationwide at an average of 58% from 1993 to 2006. Ranging from a high in Texas of 72% to a low of 38% for Alaska. Maine ranked 43rd out of 50 states at 48%.

The 10 states with the highest growth of average in earnings per worker over the period saw an increase of 67%, 16% above the national average. The 10 states with the lowest rates- including Maine - saw an average increase of 45%, 22% below the national average.

Meanwhile, Maine's tax burden increased 9% during this time. The average increase in the burden for the lowest growth in earnings states was 4%. Four states, Ohio, West Virginia, Nevada, and Idaho saw their burden increase over 10%.

So Maine isn't the worst...but it's close to it.

[corgis]

Then, come on down to West Virginia and live, then you'll really know what high taxes are like, as for me, I like the lower taxes in Maine.

[Maineah]

44th?? I feel much better now! I thought were 48th or 49th! We're making progress! Thanks Governor BALDachi!

[forest beekeeper]

Originally Posted by Petertherock

There is an article in the Sunday Telegram today about Maine's tax burden

... and earnings.

... Maine ranks 44th out of 50th in wage earnings

... Earnings per worker rose ,

... earnings per worker over,

... Meanwhile, Maine's tax burden increased 9% during this time.

... The average increase in the burden

... in earnings states,

... burden increase over 10%.

Hmm, notice not a word about Maine's taxes.

Just mumbling about burdens and earnings.


You can't talk about the taxes themselves, you are focused to discuss 'burden's and 'earnings'.

Cool

[forest beekeeper]

Originally Posted by corgis

Then, come on down to West Virginia and live, then you'll really know what high taxes are like, as for me, I like the lower taxes in Maine.

LOL

Good point.

Or California, or Connecticut, or Washington, or ...

[Bydand]

Originally Posted by forest beekeeper

LOL

Good point.

Or California, or Connecticut, or Washington, or ...

OK lets look at other states using some real world numbers. Because every tax return can be a bit different we'll just have to figure basics. Lets take the average household income for the State of Maine. According to the Census Bureau it is $41,287 the last figures they give the numbers for.

Maine short form: Income 41287 - 8900 (married filing joint)- (2850*4 (average 2 kids))= taxable income of $20,987 = Married filing joint taxes from 2007 tax tables = $877 (2007)

Connecticut Short form (EZ form) whatever you want to call it: Income $41,287 - no deductions or exemptions offered married filing joint taxes from the 2007 tax table = $415 (plus you get to subtract a percentage of vehicle and personal property excise taxes from this amount) (http://www.ct.gov/drs/cwp/view.asp?a=1509&q=277516&drsPNavCtr=|42836|#EZ)


California Short form 540 2EZ - Income $41,287 Married filing joint 2 Dependants. Deductions and exemptions figured into the tax tables. From tax table 2007 - Income $41,287 married filing joint 2 Dependants = tax amount $0 (Forms and Publications)

Washington State - No personal income tax. $0


There are some hard numbers from the states that were picked by someone else. Maine doesn't look so darn cheap for income tax does it? Most people when they think of taxes think of either property tax or income tax. Because there is such a variation in property tax rates in a state there is no real way to make a comparison between states. Valuations are different, percentage of valuation subject to tax is different. So income tax is the easiest to look at and compare.


There are a couple here that like to use the argument that you cannot use personal experience as a comparison for taxes between areas, then turn right around and insist that their own personal situation should be looked at as what to expect. That is a big double standard that cannot make sense to anybody. These are real numbers (according to the US Census Bureau), figured using current year income tax forms for the states mentioned. Anybody wants to really compare your own situation, it is easy to download tax forms for whatever state you are looking at and plugging in your own personal numbers. IF (and it is a big if) your income stays the same when you move, you will then have an accurate picture of the state you are looking at moving to. Above are some links to the main forms page for the states mentioned to get you started. Other tax information like sales tax amounts are found online as well. Some states have property tax estimators online as well. Good luck.

[MaineMathTCHER]

When I was in Texas I hated it, just hated it and complained to the DH all the time privately. But, we did one thing that I think those who always post negative things about this great state and who seem to hate Maine should also do, we moved! In this country we don't have to live in a state that we detest. Life is too short to live in a place that does not feel like home. Now in Maine, I love it and even though we make less money our quality of life is way up. So take the low wages/high taxes stuff with a grain of salt.

[Cornerguy1]

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[Petertherock]

Remember, you also have to remember Maine has one of the highest gas taxes in the country, a high sales tax, high auto insurance rates (I paid less in MA when I was a teenager and now I have 19 years of safe driving credit)

Maine nickel and dimes you to death on top of the big taxes. Also, in the recent study Maine is #2 for the highest taxed state in the nation. I just don't know who is #1.

[Petertherock]

In study after study, Maine is listed as one of the highest taxed states in the nation. The share of our personal incomes that is paid in state and local taxes – Maine’s tax burden - consistently ranks among the top few states in the country. While study methods differ in complexity and detail, the leading sources for tax and spending data agree that Maine taxpayers face a high tax burden.

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