U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 01-09-2010, 10:45 PM
 
9,807 posts, read 13,453,739 times
Reputation: 8158

Advertisements

Retired and going to be moving out of Minnesota due to its high taxes.

My real estate tax statement came, and despite my valuation being shown on the statement as lower, my real estate taxes rose $200.
Reply With Quote Quick reply to this message

 
Old 01-09-2010, 11:22 PM
 
Location: Way on the outskirts of LA LA land.
3,040 posts, read 10,446,359 times
Reputation: 1927
This "study" was skewed by stating that the tax burden was higher for poorer families than for richer families. This may be true as a percentage of income, but most of the taxes paid, by far, are paid by middle class and rich taxpayers.

The study also mentioned property taxes as being regressive because poor and middle class taxpayers paid a higher percentage of their incomes in the form of property taxes. These taxes are primarily used to fund public services such as schools, police, and fire. Is it fair to tax someone's stock holdings to fund these things, or should these taxes be levied against the properties that benefit from the services? The report would suggest the former as being "fair."

One thing the study also didn't show was that poorer families also tend to use more of the tax funded services than richer families. Aside from instances of fraud, wealthy taxpayers rarely use taxpayer funded medical services, housing assistance, and programs like food stamps.

What I think would be interesting would be to see a comparison of taxes collected vs. tax funded services utilized for the various economic classes. I think this would be a most revealing study.
Reply With Quote Quick reply to this message
 
Old 01-10-2010, 07:48 AM
 
Location: Forests of Maine
30,679 posts, read 49,437,227 times
Reputation: 19129
mmm, thank you for the link.

I followed it to the individual states' sheets. I looked for the state where I moved to for my retirement [Maine].

It says that I pay 5.4% of my income on sales taxes. I have no way to prove or disprove that, as we no longer keep track of how much we spend each year on sales tax. We used to, however for now we do not see that tracking it for ourselves would serve any useful purpose.

It says that I pay 2.9% on property taxes; in fact I pay 3.75% of our income on property taxes.

It says that I pay 1% on income taxes; in fact I pay 0 income taxes.

I do not think that anyone really 'fits' the average.

IMHO our taxes here are extremely low, so for us moving here was a huge benefit for us. Your results may vary.
Reply With Quote Quick reply to this message
 
Old 01-10-2010, 08:39 AM
 
Location: zippidy doo dah
895 posts, read 1,330,863 times
Reputation: 1928
I appreciate your additional condensing of the report and assessment of the original source. Still I would suggest that people read through the text portions in the full report-I've always found that those in favor or against anything do tend to cherry-pick. It's just one more source to add to the discussion.

In addition, perhaps someone would uncover a" very conservative think tank's" assessment of the same topic. With information from both sides of the aisle, then everyone could actually mull over the information as presented, reflect on the issues from both sides of the spectrum and grow in intellect and wisdom.

One of the delightful things about humans is we are blessed with a brain and a heart as well as all the other marvelous parts of the body and therefore are able to consider things from the perspective of our own pocketbooks and self-interest as well as the general affect on that outside our own little universes. Discourse is so good for us all (has great brain-food benefits!)

Quote:
Originally Posted by MadManofBethesda View Post
Gee, what a surprise, A very liberal think tank conducts a study and determines that virtually every state in the country should tax its wealthy residents at a higher rate while decreasing the taxes on the lower and middle class.

Basically, almost any state that doesn't have an income tax will fair poorly in such a study because it relies on sales taxes for so much of its funds. There are 7 states in the U.S. that don't levy a personal income tax. Six of these states make this so-called Top 10 list.

The pdf file of the study runs 130 pages. Let me save everyone some time. Here are the results:

1. The 7 states that don't have an income tax should begin taxing its residents.

2. The 43 states that already have an income tax should raise the tax rates at the upper end of the spectrum to make the tax more progressive.
Reply With Quote Quick reply to this message
 
Old 01-10-2010, 10:09 AM
 
Location: Bayside, NY
823 posts, read 3,374,302 times
Reputation: 387
I think that those figures are skewed since they are based on what % of one's income you pay in taxes. In order to get a better picture it should show the tax rate for each taxable category at each income level.

Here is a web site that shows taxes by state: Taxes by State
Reply With Quote Quick reply to this message
 
Old 01-10-2010, 12:09 PM
 
Location: WA
5,394 posts, read 21,390,738 times
Reputation: 5889
You can tell any story you want with selected statistics... IMO this study is looking for a way to further income redistribution in this country.
Reply With Quote Quick reply to this message
 
Old 01-12-2010, 11:17 AM
 
Location: Tennessee
34,682 posts, read 33,681,492 times
Reputation: 51867
Unfunded state mandates is so Congress and the President can make the governors the bad guys, especially during an election year.
Reply With Quote Quick reply to this message
 
Old 03-04-2010, 05:15 PM
 
Location: Near a river
16,042 posts, read 18,971,705 times
Reputation: 15649
Quote:
Originally Posted by triciajeanne View Post
A number of discussions have centered on what state/locality is the best to retire to, both in cost of living and quality of life. I happened across an article in the Sarasota Herald-Tribune that identified Florida as one of the top 10 unfair states on taxation policies so I was curious as to who the other nine were and why they had earned such a dubious distinction.

I've included a link for the report and it is worthwhile skimming through/some abbrieviated links are also available at the site if you are just interested in reading the table format on certain states. Reading the text however in the full document adds to the value however.

The key contention is the various tax burdens of states can unfairly affect the poorest citizens as well as the middle class - i.e. the most wealthy citizens pay the least portion of their income when one factors in income tax/property tax/sales tax etc. While the report is specifically discussing non-elderly population, it is still pertinent in several ways. Who Pays? 3rd Edition
TJ, just saw this thread. I don't understand---is the data of percentages of taxes paid based on a person's INCOME? For ex, are my property taxes based on my income?? I have never provided that info to my town. Are they looking up IRS records to determine my taxes? (forgive me I am slow at comprehending)..
Reply With Quote Quick reply to this message
 
Old 03-04-2010, 05:18 PM
 
Location: Near a river
16,042 posts, read 18,971,705 times
Reputation: 15649
Quote:
Originally Posted by forest beekeeper View Post
mmm, thank you for the link.

I followed it to the individual states' sheets. I looked for the state where I moved to for my retirement [Maine].

It says that I pay 5.4% of my income on sales taxes. I have no way to prove or disprove that, as we no longer keep track of how much we spend each year on sales tax. We used to, however for now we do not see that tracking it for ourselves would serve any useful purpose.

It says that I pay 2.9% on property taxes; in fact I pay 3.75% of our income on property taxes.

It says that I pay 1% on income taxes; in fact I pay 0 income taxes.

I do not think that anyone really 'fits' the average.

IMHO our taxes here are extremely low, so for us moving here was a huge benefit for us. Your results may vary.
just curious to know how you pay $0 in income taxes?
Reply With Quote Quick reply to this message
 
Old 03-04-2010, 05:36 PM
 
Location: Forests of Maine
30,679 posts, read 49,437,227 times
Reputation: 19129
Newenglandgirl -

1- It is common for studies to look at the total combined taxes collected by a state from all of it's sources [property taxes, fuel taxes, school taxes, and income taxes]. Then to look at how much the IRS says that all residents earned gross. With these numbers you can say that the average resident earns X, and the average resident pays Y.

If a state has 1million residents the total State Revenue divided by 1million shows what the 'average' tax is.



2- I am retired on pension. My pension income is below the minimum income for paying income taxes. When you add the Standard Deduction for filing Married-Joint and the Exemptions for a couple, you have an amount which you would need to exceed, before you could begin to pay income taxes.

My Dw was recently promoted at her work. She was working p/t, her income added onto mine was not enough to pay income taxes.

However now she is working f/t, this increase in our income has just recently caused us to begin reviewing our tax-plan. As we may have some small amount of tax obligation next year.

Fortunately when I retired we moved to an area with really low taxes where we were able to buy land, build a house and still be able to really prosper on this level of income.

A very low cost of living area indeed.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top