2017 housing demand timing (Dallas, Plano, Point: 2014, foreclosure, low crime)

[TR95]

Originally Posted by MckinneyOwnr

I don't know what to tell you other than your post is a complete joke. People are fleeing California because of the tax situation. The 2015 state income tax rate? If you're a Toyota employee making over $100k a year, your tax rate is 9.3%. TX state tax income rate... oh wait, we don't have one.

Property taxes around here are about 2-2.5% of the value. Big deal if California's rate is 1%. The houses there still cost more and are a lot smaller! Hence, more bang for the buck here.



This.

I don't really think the tax situation is making people flee. It's also not as simple as saying $100k is in a 9.3% tax rate either. The effective tax rate is closer to 6%, and there are also,any more variables that go into the taxes as well such as the deductibility of state income tax on federal returns. I'm not here to argue that Ca is not a greater tax burden but there are many other factors that can tend to decrease the COL Gap. So really that person's post is really not a complete joke.

[MckinneyOwnr]

There are a million articles online detailing why businesses and the middle class are leaving California, and taxes and the high cost of living are the reasons in every one.

[TR95]

Originally Posted by MckinneyOwnr

There are a million articles online detailing why businesses and the middle class are leaving California, and taxes and the high cost of living are the reasons in every one.

Is it taxes or the high cost of living? You just changed your story. Like I said people are not fleeing because of the taxes. High cost of living sure. Way to inflate the tax rate as well.

[MckinneyOwnr]

Originally Posted by TR95

Is it taxes or the high cost of living? You just changed your story. Like I said people are not fleeing because of the taxes. High cost of living sure. Way to inflate the tax rate as well.

No, I didn't change my story. A previous poster was saying there was no "bang for the buck" for moving to TX. That certainly covers COL in MY book... and anyone else who lives in reality.

I didn't inflate the tax rate. If you doubt what it is for an earner of $100k a year, go look it up yourself as I already did. People and companies are leaving because of taxes. It's fine to think otherwise. Plenty of people go through life being wrong.

[serger]

About the 2.5% vs 1% property tax comparison.

What if the so much discussed here toyota employee bought his/her house 30 years ago. What is their current property tax? The answer is in Prop.13 and it is close to nothing.

Also what if some of them have kids in state schools over there. The out of state sticker will run around 50k.

[Beardown91737]

When calculated correctly, the California State income tax on a taxable income of $100,000 is 6.81%. The tax rate on $250,000 is 8.2%. After that, it goes to a higher bracket and in $250K plus taxable, you may wind up paying 9.3% for real.

Tax on income between $50,869 and $259,844 is $2,239.71 plus 9.30% of the amount over $50,869.
Source: ftb.ca.gov

[TR95]

Originally Posted by MckinneyOwnr

No, I didn't change my story. A previous poster was saying there was no "bang for the buck" for moving to TX. That certainly covers COL in MY book... and anyone else who lives in reality.

I didn't inflate the tax rate. If you doubt what it is for an earner of $100k a year, go look it up yourself as I already did. People and companies are leaving because of taxes. It's fine to think otherwise. Plenty of people go through life being wrong.

You clearly don't know the difference between marginal tax rates and effective tax rates, but go ahead and keep being wrong in life as you seem to know all. You said people were fleeing because of taxes which is simply not true. But you're entitled to your opinion however wrong it may be. N

[MckinneyOwnr]

Originally Posted by TR95

You clearly don't know the difference between marginal tax rates and effective tax rates, but go ahead and keep being wrong in life as you seem to know all. You said people were fleeing because of taxes which is simply not true. But you're entitled to your opinion however wrong it may be. N

Yep it's true. That's the funny thing about facts. But it's not worth my time to educate you on such a simple concept as this.

[MckinneyOwnr]

Originally Posted by Beardown91737

Tax on income between $50,869 and $259,844 is $2,239.71 plus 9.30% of the amount over $50,869.
Source: ftb.ca.gov

Exactly. California has their taxes set just like the federal government does. You pay a lower percentage on earnings up to a certain point, and pay a higher amount (your tax bracket) on the rest.

But I wasn't going to get bogged down in another poster's nonsensical quibbling. If you ask someone what their tax rate is, they're going to tell you the highest percentage they have to pay, not what their actual rate comes out to be. We're in the 28% bracket, but what that really means is that we pay ~$30k and 28% on anything over $150k.

[TR95]

Originally Posted by MckinneyOwnr

Exactly. California has their taxes set just like the federal government does. You pay a lower percentage on earnings up to a certain point, and pay a higher amount (your tax bracket) on the rest.

But I wasn't going to get bogged down in another poster's nonsensical quibbling. If you ask someone what their tax rate is, they're going to tell you the highest percentage they have to pay, not what their actual rate comes out to be. We're in the 28% bracket, but what that really means is that we pay ~$30k and 28% on anything over $150k.

Quibble, not all. You call someone's post, which has more credence than your post, a "complete joke." I then refute that the gap is not as simple as saying someone is in a 9.3% tax rate, then think you know it all. Go ahead with the misinformation and spread it so clueless people like you won't move to Ca.

Unlike most people that I worked with in Texas that complained incessantly about the influx of people, the traffic, the increased property taxes, etc., etc., I like people "fleeing" into my neighborhood. It keeps property values increasing, and I don't have to deal with annual 10% assessment increases. Oh, and I don't seem to have to pay more than $150/month on gas, electric and water at least until the drought proves insurmountable. Enjoy those $15,000/yr property taxes in 5 years if houses keep appreciating.