Retiring to Tennessee: Financial info (taxi, sales tax, garden)

[jimj]

Not being a TN resident (yet) I can't comment on the mood there, living in a tourist area now where there is no sales tax the mood is that it is unfair. We are taxed on income at 10% for 45k a year or 11% + if over that.

The locals are paying to support the infrastructure and the tourists who come here enmasse pay for nothing. They use the roads,fire,police etc. yet don't shoulder any of the costs. As for the poor, this is why I support the Fair Tax plan. If you read it you may come to the conclusion that it is eminately fair to everyone as I have. Google fairtax if you want to see it.

[TreeFarm]

Originally Posted by jimj

Not being a TN resident (yet) I can't comment on the mood there, living in a tourist area now where there is no sales tax the mood is that it is unfair. We are taxed on income at 10% for 45k a year or 11% + if over that.

Back when we were looking for a place to relocate to, I wrote off Montana for just that reason.

[TheShadow]

LauraC,

Did they not have sales tax where you were from? I know it's a lot different from state to state. Where I live we have high income taxes, high property taxes and sales tax of 7.75%. So really anything would be an improvement! I'll take the higher sales tax, at least I'm not getting taxed twice, or three times, on everything. I pay tax on my income to the IRS and then the state income tax, and when I spend what's left on my mortgage, I get to pay the property tax, and then with what's left after that, I get to pay tax on anything I buy (except food in CA). I get taxed on my electricity bill and my phone bill, my sewer and water bills, etc. etc. If I go on vacation I get taxed on my motel room, my airfare, etc. I know most people are in the same boat, so...is sales tax such a bad thing? Not really, it's the multiple taxation that irritates me. I'm left with a fraction of a fraction of what I earned.

[hiknapster]

In Massachusetts, there is no sales tax on food, medicine or clothes. And they call it Taxachusetts.

[JMT]

Originally Posted by nalabama

Very interesting tax thread. I hang out on the Alabama and Kentucky forums most of the time, but check in here occasionally. What I hear seems to be opinions that paying taxes on the two primary sources of wealth--income and assets--is BAD and sales taxes are GOOD because we can manipulate them by choosing what, when (tax holidays), and where to buy. We're having this same internal debate in Alabama now, with grudging steps being made to exempt the very poor (poverty level) from Alabama income taxes. Yet we continue to support taxes which appear to impact our poorest citizens disportionately: high sales taxes, because the poor must spent a greater portion of their earnings/assets on food and clothing, and the higher property taxes paid on their housing in many cases (a 20% assessment rate for rental versus 10% for private residential). This has become a religious issue for some Alabama Christians, who are asking what they consider the penultimate question: What would Jesus think of this? [WWJTOT] So far, most Alabama voters seem to believe Jesus would think it's just fine. Where do Tennessee's present and future Christians (or any other religions/Athetists/Agnostics/etc.) stand on this question? Any comments?

OK, I'll try to answer this one.

Most Christian churches levy a "tithe" on their members (not all churches, but most of the fundamental churches I've seen). And the definition of "tithe" is 10 percent. Rich people are strongly encouraged to contribute more if they want, but it is not a requirement. And, at least in every church I've ever attended, EVERYONE is expected to pay 10 percent, no matter your income level. No discounts are given to people who live below the poverty line.

The notion that it's somehow easier for a rich person to part with 10 percent of his money than a poor person is ludicrous. I knew a wealthy man who had a hard time giving up 10 percent of his very substantial income because that 10 percent was more than his parents' combined retirement income. It was a LOT of money. I also think it's highly offensive of some people to just assume that wealthy people have nothing better to do than to wallow around in their dirty money; most wealthy people I know are wealthy on paper since their wealth is tied up in investments, real estate, etc., and I read the statistic som

(In my church, at least, everyone is expected to pay an honest and full 10 percent tithe. That means that if you earn no money at all, you pay nothing. And sometimes a farmer pays his tithe in the form of produce if he doesn't have the cash.)

In the parable of the talents in the New Testament, it was the poor person, the one who did nothing with the one meager talent he received, who was duly chastised by his master. The rich servant, the one who went out and invested his talent, got richer. The poor servant got poorer. I think there's a lesson there. And I think most Americans, when they sit down and think about it, would agree. Consider the statistics as cited in the NY Times on America's hard-working millionaires:

80% of America's millionaires have college degrees, and 38% have advanced degrees. And nearly half of America's millionaires received no financial help from their parents with their college expenses.

70% of America's millionaires work between 45 and 55 hours a week.

80% of America's millionaires are first-generation millionaires. And 50% of America's millionaires never received any inheritance whatsoever. Fewer than 20% of America's millionaires received more than 10 percent of their wealth from their parents.

91% of America's millionaires never received any ownership in their parents' business.

Clearly, if we want to create more opportunities for more people to make more money (and, therefore, purchase more luxury goods and pay more sales taxes, etc.) then it seems to me we should quit punishing those who are actually out there generating income and producing wealth (via the progressive income taxes). The Fair Tax seems to be the ideal way of doing that. And, in return, the United States, free of all other tax restraints, would become the world's hot-bed of entrepreneurship and would allow more people to follow the example set in the New Testament: invest, invest, invest.

[hiknapster]

I smell Reaganomics, the good, old trickle down theory.

[jimj]

Isn't that the sound the toilet makes before everything goes down?

[klosk]

Originally Posted by hiknapster

Great. Just what we need: A bunch of retirees trying to save a buck that end up hating it here and complaining all the time.

We are closing on our home in Tennessee this month. We are retiring from New Mexico. We have been to Tennessee every year for the past four years and we LOVE Tennessee!!!!!!!!!! We met some of our new neighbors and they a wonderful !!!!!!!!!! I was born and raised in Cincinnati and my mom's maternal side of the family was from Tennessee. I spent many summers with my grandma at her sisters farm in Goodletteville. Fond memories!!!!!!!!!! My husband and I cannot wait to get there. WE LOVE TENNESSEE!!!!!!!!!!!! You won't hear any complaints from us as we know what it is like and we do not want to live ANYWHERE ELSE.

I am moving to Eastern Tennessee for one reason. It is a beautiful state with beautiful people. Some of my roots are Tennesseean. I was born and raised in Cincinnati and would not go back for any amount of money. BAD,BAD place in my opinion. New Mexico is in the High Desert, DRY and BROWN. Very tired of it after 38 years. Besides you can't meet better people then those of TENNESSEE!!!!!!!!!!!!!!!!!!!

[hiknapster]

Congratulations, Klosk!

[JMT]

Originally Posted by hiknapster

I smell Reaganomics, the good, old trickle down theory.

Well, poor people generally don't create jobs.