Taxes

[DavidoftheNorth]

Originally Posted by irishmom

That's a great site!

But I have one question:

Does anyone actually WANT to move to Alabama where they have the lowest tax burden?...LOL

Actually, that's a good point - it might be similar to the idea of accepting the low bid on a project from a contractor - you have to wonder what corners will be cut, etc. When I used to work in the engineering field this was illustrated by a cartoon showing a blown-up nuclear power plant with a caption to the effect "We took the low bid." In the tax game, it's probably best to be in a state somewhere in the upper-middle range. If it's at or near the very top, that could be a sign of problems, also.

[Coaster]

In absolute numbers, Maine ranks around 18 in the nation for its tax burden. The kicker, as FB noted, is that Maine's per capita income is much lower than many other states -- somewhere around 38th IIRC. (The numbers are readily available with a google search, but I'm just passing through today.) Thus the tax burden as a percentage of per capita income is very high -- Number 1 or 2, depending on who's doing the numbers. The Tax Foundation website has details.

So if your personal income is at the high end, Maine's taxes aren't that burdensome. If your income is at or below average, the pain is felt much more sharply.

[upstate_sc]

Irishmom I love your sense of humor! I hope that ME has lots of people like you there.

[irishmom]

Originally Posted by Coaster

In absolute numbers, Maine ranks around 18 in the nation for its tax burden. The kicker, as FB noted, is that Maine's per capita income is much lower than many other states -- somewhere around 38th IIRC. (The numbers are readily available with a google search, but I'm just passing through today.) Thus the tax burden as a percentage of per capita income is very high -- Number 1 or 2, depending on who's doing the numbers. The Tax Foundation website has details.

So if your personal income is at the high end, Maine's taxes aren't that burdensome. If your income is at or below average, the pain is felt much more sharply.

The property taxes can be brought down by living in more rural areas...so people can have some control over the amount they pay on that. But I think the other problem is even though there are different rates for different levels of income the highest rate (8.5%) kicks in below the average median income for the state...which seems unfair to me.

This is what I found on that:

income between $0 and $4,350, tax rate 2%.
income between $4,351 and $8,650, tax rate 4.5%.
income between $8,651 and $17,350, 7%.
income between $17,351 and over, tax rate 8.5%.

It seems to me that the state is taxing even people who technically fall at or below the poverty level (2007 FPL $15,315 for 1 person, $20,535 for 2 person) at the highest rates, how does that make any sense? Shouldn't the highest rates be reserved for the higher earners? Or at least for people actually meeting the median income for the state. Government irks me at times.*sigh*

[irishmom]

Originally Posted by upstate_sc

Irishmom I love your sense of humor! I hope that ME has lots of people like you there.

My bad.

We just bought a parcel of land in Maine. We plan on building a vacation home in another year or so...so Maine will have to wait until I retire for full sarcastic me.

[irishmom]

Originally Posted by DavidoftheNorth

Actually, that's a good point - it might be similar to the idea of accepting the low bid on a project from a contractor - you have to wonder what corners will be cut, etc. When I used to work in the engineering field this was illustrated by a cartoon showing a blown-up nuclear power plant with a caption to the effect "We took the low bid." In the tax game, it's probably best to be in a state somewhere in the upper-middle range. If it's at or near the very top, that could be a sign of problems, also.

I think that's completely right...there should be enough services and economy to support those services with out making the burden completely fall on the residents. If there isn't enough taxes then you can bet there aren't services either. Middle is better.

[forest beekeeper]

Originally Posted by irishmom

That's a great site!

But I have one question:

Does anyone actually WANT to move to Alabama where they have the lowest tax burden?...LOL

No