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i believe that i am correct when saying that MANY military retirees choose to settle in Texas because Texas does not tax their retirement pay.........
Yes, but Texas doesn't tax anyone's income and that is a bigger reason. Other states either do not tax military retiree income or only tax half (California for example).
1 - There is a lot of it
2 - Other than Galveston, it's not close to the major population centers
3 - Transportation infrastructure -- there is no highway or even road along the whole coast, probably due to above
4 - Property tax rate makes all TX property appear cheaper
Roma, the desirability of a region generally plays only a marginal role in the prices paid for properties in that region. The most expensive real estate tends to be in places with large amounts of commercial activity (i.e. Jobs, people) but limited space for building.
Texas certainly is certainly not lagging in commercial activity / population growth. More people have moved here over the past decade than to any of the states along the East or West coast.
The bottom line is that there is much more land available for development in Texas, fewer regulations against development and cheap immigrant labor available for building homes. All of this adds up to the fact that you get much more for your money here in Texas than in overpriced markets like California.
Quote:
Originally Posted by atxcio
Just in case you aren't joking around,
1 - There is a lot of it
2 - Other than Galveston, it's not close to the major population centers
3 - Transportation infrastructure -- there is no highway or even road along the whole coast, probably due to above
4 - Property tax rate makes all TX property appear cheaper
Now, I have heard every excuse in the book. LOL
C'mon, you can do better than that. Care to dispute any of those facts?
Really?!?!?! As a business owner in Dallas I've never hired an illegal. I'd be willing to bet that most of the businesses we deal w/ don't either. But then again I'm talking legit businesses that have many federal & state regulations that must be followed w/ employees holding different licenses from many different gov't agencies. Tax structure? You don't own a business do you? While our states taxes may be better on businesses than some it is not THAT cheap. Businesses pay property taxes too and just like homeowners if the property values are not as high as other areas they get a savings. That is the end of the line when it comes to savings for businesses concerning taxes. Otherwise we have some state taxes on businesses that other states don't.
Overall I'd say the biggest reasons for businesses to locate in the D/FW or Houston area are:
1. Good location midway in the country w/ easy access to either the west or east coast and international destinations. Since the weather is moderate we don't see the airports shut down like you will in the northeast or midwest.
2. Large base of employes and not unskilled illegal employees but rather a large base of highly educated individuals.
3. Tax incentives to move to an area. This is in the form of tax abatements that one receives on their property taxes w/ the city/county/school district. These are on a sliding scale that typically last for 5 years.
4. Moderate weather. Again it is not freezing cold nor hot all the time. We have some winter and summer. Texas is a large state and not all if it is hotter than hell all the time.
5. Cost of living. This is for the business and their employees. Afterall the business owners/presidents are also living in the area and their money can go farther too in this state.
Just a few reasons why businesses chose to locate in Texas.
I was reading your post regarding why Texas so cheap. I didn't realize you were a business owner. Let me tell you about my previous employer. He ran a tractor dealorship in the DFW area. He owned 10 acres on which he had built a pretty large shop in the back of his house which he used as combination barn, tackroom and garage/shop for his 18 wheeler. When he stopped truck driving, he bought a couple of old tractors and fixed them up for resale. This evolved into more used tractors and then he took on a line of new, tractors. He bought a litle mobile office building (which later, after he had depreciated it out and replaced it with a larger one, he moved it down to his farm for his wife to use for her painting hobby)and put it in by the shop behind his house. He managed to get a deal with a large parts wholesaler and began selling tractor parts.
After I went to work for him, he gradually took on more tractor lines, ZTR mowers, 4 wheel carts (such as Mules, Gators, etc). He did not want to pay anyone very much (his famous saying was...I'm just a little guy, I would love to pay you (X amount) but right now, I just can't afford to, maybe later now when things pick up.... He paid everyone contract labor so he didn't have to pay SS, etc. He liked to hire older men to work as mechanics and when I say older, I mean in their 60's and 70's. I will never forget overhearing him talk to the unemployment office one day when he was trying to hire a mechanic. He told the lady he wanted an older man, but not too old, he needed to be in good shape and healthy enough to work on tractors ,which some of them were pretty big and it was hard and heavy work. He told her he preferred someone on SS (that way he felt like he didn't have to pay tham very much) and who just wanted to supplement their income, it didn't matter how old they were as long as they were healthy and not too long in the tooth. It sounded as though he was trying to buy a mule!
He ran the electricity from his house out to the shop and the office building and also the phones. He (or rather I did) paid the bills through the company. His auto insurance (and his wife's) was paid through the company. It was amazing what he bought through the company amd therefore used as a write off. They virtually had no living expenses. Whenever he took something in on trade that he liked, it might be a tractor, it might be a go-cart, he would just keep it. Later on, if he got tired of it, he would sell it and pocket the money, nothing ever showed up on the books. He would pay family members expnsive computers, etc. for Christmas presents and write them off, all the time crying "he just never made any money from that company". When he got a cell phone to be used for company business, his wife had to have one too. So, another personal expense paid through the company. He always lied when he filled out the property report for his business tax. He would get everyone to sign the sales ecempt for ag if he possibly could. After we got pretty big, he leased a vacant lot in a more visible location and put a sales office on it. That's when the state guy finally came by and paid him a visit. After that he was a little more careful when collecting and paying sales tax. But this was the only time he was ever approached or questioned about anything. The state came up with an inventory tax to reduce the personal property tax and he made out like a bandit on that deal.
The point I'm making here is that during the 12 years I worked for him, he was never questioned or audited, etc. Seems to me, here in Texas, if you're so inclined you can get away with murder in a small business. It might be like this everywhere, I don't know, I just know what I saw when I was working for him. If it is this lax on any type of controls, this would certainly be an incentative to start a business here. Actually, I learned a lot during the time I worked there. I could wite a book on how to run a small business and get rich!
"But this was the only time he was ever approached or questioned about anything. The state came up with an inventory tax to reduce the personal property tax and he made out like a bandit on that deal.
The point I'm making here is that during the 12 years I worked for him, he was never questioned or audited, etc. Seems to me, here in Texas, if you're so inclined you can get away with murder in a small business. It might be like this everywhere, I don't know, I just know what I saw when I was working for him. If it is this lax on any type of controls, this would certainly be an incentative to start a business here."
Well, I can't say we have been THAT lucky. We have been audited. Not fun. And more than once on sales tax. It is a MAJOR pain in the butt. We know someone that was a state sales tax auditer and she was still doing it one time when they showed up. We asked her some questions about how the auditer we had was operating, in Texas it is how each one intreprets the laws. So one may be lax on some issues while the next guy could be a hardbutt. There is no consistency at all. We also get audited by other state & federal agencies but not for income, taxes, etc.
When it comes to what the business pays for it can be several factors at play. Depending on the profit of the business sometimes there is a need to spend some money in order to not have to pay taxes on it. Our CPA every year about 3 months out before our end of the year calls and gives the figures and we go over them. It is either spend it on something for the business or pay taxes on it. Have to watch here because depending on what it is depends on the % that can be written off as an expense. Sometimes salary is not always the best bet and can actually cost more in the long run. He might have been just skimming by who knows or pocketing it. I've seen some crazy things and then sometimes the tax laws don't help either.
As for the age of the employees, I can see his side easily. When it comes to repairs on certain types of equipment most of the time it is the older worker that knows how to do it and is willing to get dirty and work till it gets fixed. We have that issue in our business when it comes to repairs on certain types of industrial equipment. You can't find a younger person that knows how to do the work and if they do if they are even willing to do it. The trades are not being taught and handed down. Look at something as simple as a locksmith. I've dealt w/ this myself recently and it is flatout sickening. I have a door that is not the normal thickness but is thicker. Bought a new handle and lock for the front door and in order to work we found while putting it on we needed the "extension kit". Even on the manuf. website they mention it. Called HD and Lowe's and got the same answer, "no such thing". Called locksmiths and only had ONE call me back and gave the same lame answer as the rest, "no such thing". Really, I'm the ONLY one in the entire United States that has a door 2 1/4" and the manuf makes a kit JUST FOR ME! Wow, I feel flattered. But no one knew about it. Called Elliots (should have in the first place) and the older gentleman that answered the phone knew right away what I needed and had it and held it for me. When I went to get it he even showed me how to make sure it is put on correctly. I'd be willing to bet the guy was on SS and had the job to supplement his income but I'm sure glad he was there. So when it comes to trades like that sadly a lot of times it is going to be the older worker that you want to hire. Most are also on a watchful eye on what income they bring in so as not to interfere w/ their retirement. My own dad is in that situation. He wants a job to keep busy but not a full time job but he can not make over a certain dollar amount w/o risking his retirement and benefits. He also is not in the greatest health but he is the one the employer will call whenever they need something done and done right because they can count on him and not the younger guys. Sad world we are living in nowadays. Oh, and benefits. We provide those and I used to really care about how they helped the employees and all and wanted to make sure it was good for them too as far as the plans go. Not anymore. I heard WAAAY TOO much complaining and we were the ones paying for it 100%. They would complain about everything so I stopped asking for input. Now when it comes to decide on insurance plans we look it over and do what is best for our own family of 4. I felt bad at first but then after awhile and hearing all the complaining over stupid stuff I let it go. I mean when I a 40+ year old woman can take a truck to stock up on Gatorade, soft drinks, water, etc and load it down MYSELF! But pull up to the office to the dock the guys scatter like roaches if the lights came on. Then have the audicity to complain about a flavor of Gatorade?!?!?!?!!! WTH! And this was from the one guy that would not even lift a finger to replace a roll of paper towels in the kitchen who thankfully no longer works there. I have no time for petty bs office politics. Sorry to go off on a rant but there are so many things that go on that we have to deal w/ that sometimes it is enough to make you want to throw in the towel.
"But this was the only time he was ever approached or questioned about anything. The state came up with an inventory tax to reduce the personal property tax and he made out like a bandit on that deal.
The point I'm making here is that during the 12 years I worked for him, he was never questioned or audited, etc. Seems to me, here in Texas, if you're so inclined you can get away with murder in a small business. It might be like this everywhere, I don't know, I just know what I saw when I was working for him. If it is this lax on any type of controls, this would certainly be an incentative to start a business here."
Well, I can't say we have been THAT lucky. We have been audited. Not fun. And more than once on sales tax. It is a MAJOR pain in the butt. We know someone that was a state sales tax auditer and she was still doing it one time when they showed up. We asked her some questions about how the auditer we had was operating, in Texas it is how each one intreprets the laws. So one may be lax on some issues while the next guy could be a hardbutt. There is no consistency at all. We also get audited by other state & federal agencies but not for income, taxes, etc.
When it comes to what the business pays for it can be several factors at play. Depending on the profit of the business sometimes there is a need to spend some money in order to not have to pay taxes on it. Our CPA every year about 3 months out before our end of the year calls and gives the figures and we go over them. It is either spend it on something for the business or pay taxes on it. Have to watch here because depending on what it is depends on the % that can be written off as an expense. Sometimes salary is not always the best bet and can actually cost more in the long run. He might have been just skimming by who knows or pocketing it. I've seen some crazy things and then sometimes the tax laws don't help either.
As for the age of the employees, I can see his side easily. When it comes to repairs on certain types of equipment most of the time it is the older worker that knows how to do it and is willing to get dirty and work till it gets fixed. We have that issue in our business when it comes to repairs on certain types of industrial equipment. You can't find a younger person that knows how to do the work and if they do if they are even willing to do it. The trades are not being taught and handed down. Look at something as simple as a locksmith. I've dealt w/ this myself recently and it is flatout sickening. I have a door that is not the normal thickness but is thicker. Bought a new handle and lock for the front door and in order to work we found while putting it on we needed the "extension kit". Even on the manuf. website they mention it. Called HD and Lowe's and got the same answer, "no such thing". Called locksmiths and only had ONE call me back and gave the same lame answer as the rest, "no such thing". Really, I'm the ONLY one in the entire United States that has a door 2 1/4" and the manuf makes a kit JUST FOR ME! Wow, I feel flattered. But no one knew about it. Called Elliots (should have in the first place) and the older gentleman that answered the phone knew right away what I needed and had it and held it for me. When I went to get it he even showed me how to make sure it is put on correctly. I'd be willing to bet the guy was on SS and had the job to supplement his income but I'm sure glad he was there. So when it comes to trades like that sadly a lot of times it is going to be the older worker that you want to hire. Most are also on a watchful eye on what income they bring in so as not to interfere w/ their retirement. My own dad is in that situation. He wants a job to keep busy but not a full time job but he can not make over a certain dollar amount w/o risking his retirement and benefits. He also is not in the greatest health but he is the one the employer will call whenever they need something done and done right because they can count on him and not the younger guys. Sad world we are living in nowadays. Oh, and benefits. We provide those and I used to really care about how they helped the employees and all and wanted to make sure it was good for them too as far as the plans go. Not anymore. I heard WAAAY TOO much complaining and we were the ones paying for it 100%. They would complain about everything so I stopped asking for input. Now when it comes to decide on insurance plans we look it over and do what is best for our own family of 4. I felt bad at first but then after awhile and hearing all the complaining over stupid stuff I let it go. I mean when I a 40+ year old woman can take a truck to stock up on Gatorade, soft drinks, water, etc and load it down MYSELF! But pull up to the office to the dock the guys scatter like roaches if the lights came on. Then have the audicity to complain about a flavor of Gatorade?!?!?!?!!! WTH! And this was from the one guy that would not even lift a finger to replace a roll of paper towels in the kitchen who thankfully no longer works there. I have no time for petty bs office politics. Sorry to go off on a rant but there are so many things that go on that we have to deal w/ that sometimes it is enough to make you want to throw in the towel.
I can relate to what you're saying. It seems to be almost impossible to find anything made right or anybody who knows squat about anything anymore in this country. Well, I need to modify that, of course there is, but it does get discourging at times. He did have one older man who was a tractor mechanic (not just someone who had tinkered around with tools, etc) and really knew his stuff, but he wouldn't pay him anything , and tried to work him to death, so he eventually left.
As far as any benefits whatsoever, he never made any attempt to offer anything, but as far as that, I could see his point,,,costs are outrageous.
What I was trying to say is the out and out obvious things he did and got by with. There seemed to be no checkpoint. He hired a CPA a few years after I went to work for him and the CPA was always telling him he couldn't do this or that (he didn't even know half of it). The CPA finally just got where he shrugged and gave up.
So, maybe crime does pay! I would have been caught and put in jail, but maybe not, like I said, they don't seem to check things to well here in Texas. You are the first person I've heard of who has been checked on their sales tax, although I'm sure there must be others who have been.
Our sales tax (at a restaurant) was checked at least twice in the 5 years I was there. TABC was in several times a year to check liquor sales and inventory...even measured our glasses to make sure purchases - spills = sales. These were all 'random' (at least I think they were) since we didn't have any specific cause to be suspected of anything.
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