Increase in sales tax proposed?

[dweej]

Originally Posted by killer2021

lol no kidding. Anyone still liking the $10 billion bond for the high speed rail?

This just makes me want to leave the state even faster. Once I finish up my BA degree in accounting I am leaving CA and moving to texas where the homes are cheap and there is no state income tax. oh, and unemployment is lower as well.

Ca is taking a nose dive. I don't want to be the one paying for it.

I read recently that of the approximately 450,000 jobs created in the last 12 months, 250,000 of them were in Texas. If you're gonna get a new job anywhere, the Lone Star state seems like a pretty good bet to me. And you you can also say adios to your state income tax. Sign me up!

[cobmw]

The next post will be from the CA cheerleading society telling you guys "good riddance". Interesting how those living off taxpayer money are so quick to tell the high taxpayers to scram.

[dweej]

Yeah, that's the general progression of posts isn't it? There is a lot to love about living in CA or there wouldn't be so many people here (simplistic, I know), but considering this thread is about increased taxes and their impact on our lives, I'm gonna hold out hope that people will be able to be objective about how those increases (and budget cuts too!) will negatively impact our lives. C'mon people....don't let me down!

[Ultrarunner]

Originally Posted by FinkieMcGee

Man, and what a regressive tax increase as well. I don't know why, if they were opting to increase taxes, they went with the sales tax instead of an income tax increase.

Sales Tax taps into those working off the books and those without taxable income. It has been the tax of choice for much of Europe because it is easier to collect.

[cobmw]

We will get a VAT like Europe before long. But it wil be in addition to the income tax and not instead of it. Of every dollar I make something like 60 cents goes to some form of government. But that's not enough. It will never be enough. All wars are no good except the war on poverty which we will be forced to fight forever regardless of the outcome.

[antredd]

Originally Posted by dweej

I read recently that of the approximately 450,000 jobs created in the last 12 months, 250,000 of them were in Texas. If you're gonna get a new job anywhere, the Lone Star state seems like a pretty good bet to me. And you you can also say adios to your state income tax. Sign me up!

Yeah but if you are like my mother in law who bought her house in Texas two years ago, property taxes kick you in the butt.

Unlike proposition 13 that keeps a home owner's taxes low in CA, Texan home owners run the chance of their property taxes rising each year up to 9%, depending on the county, until they turn 65. Ouch!

[dweej]

Originally Posted by antredd

Yeah but if you are like my mother in law who bought her house in Texas two years ago, property taxes kick you in the butt.

Unlike proposition 13 that keeps a home owner's taxes low in CA, Texan home owners run the chance of their property taxes rising each year up to 9%, depending on the county, until they turn 65. Ouch!

That's true- property taxes are higher, but you can choose to live in a smaller house instead of getting penalized every time you get a raise. You also have to consider that the house itself here will cost you more. I'd rather pay mortgage and a 2.5% tax on a $180K house there (with only $240 per *year* in HOA) than the mortgage and a 1.5% tax on a similar $360K house here (with $150 per *month* HOA). If you're talking about total expenditure, it still makes financial sense going the TX route. I'm not saying everything about TX is better or anything- talking strictly finances and taxes (staying on topic!).

[EscapeCalifornia]

I ran a little comparison in Excel as follows:

California: $600,000 house, 30 year fixed @ 6% ($3600/mo payment), 1% property tax with a 2% annual increase

vs

Texas: $200,000 house, 30 year fixed @ 6% ($1200/mo payment), 3% property tax rate

Over 30 years, the mortgage payment stays fixed but the tax cost goes up. In the first year, the Texas house is $2400/mo cheaper than the California house because while the tax bills are equal, the mortgage payment is much less. But since the tax bill on the Texas house increases faster than the California tax bill, the overall housing cost evens out in the 23rd year if the 9% annual tax increase rate cited above is used. After that, the Texas house becomes progressively more expensive. But, what are the odds of 9% annual increases over that long a period? The taxes are based on the market value of the house and houses just don't appreciate that much in Texas.

If a 5% annual tax rate increase is used instead, after 30 years, the Texas house is still $1200/mo cheaper than the California house. The California house doesn't become cheaper until its paid off. In my example, the paid-off California house would cost $905/mo in taxes in its 31st year of ownership while the Texas house would cost $2160/mo in taxes using the 5% increase rate in Texas. That savings is of course thanks to California's Prop 13 which keeps property taxes low for long term owners. That might suggest that California is a good place to own a house outright in retirement. But keep in mind that California is a high tax state overall and has an income tax that will eat into one's retirement income while Texas doesn't have an income tax at all. California also has high sales tax, car tax, etc. so the overall difference may not be as high as the property tax difference suggests.

[steel7]

Revenue is up in ca even with the high sales tax. If someone wants something they will buy it even if the state is burning them.

When my car was totalled from a accident the state got $123.00 in tax from my property settlement.

I HATE the hartford insurance co. They sure did burn me.

[SacalaitWhisperer]

Utility costs in Austin are very high. Factor that in too.