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Old 08-16-2009, 09:50 PM
 
Location: USA
526 posts, read 1,739,475 times
Reputation: 319

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After doing some research on Idaho's taxes I have to wonder if the state is truly a "red" state.

When compared to CA you have the same 1% property tax on full market value except Idaho has no cap/limits for how high this tax can go relative to one's income.

When compared to CA you actually have a higher state income tax at 7.8% at a low 28k income bracket level.

And while the state sales tax is roughly 2 percentage points less than CA you actually tax food and prescription drugs. In the end I find that this is practically the same amount.

I am sure social values are quite different between the two states, although when it comes to fiscal conservatism it seems as though you are as far away from it as CA.

It seems that WA is more fiscally conservative than Idaho since they don't have a state income tax which could add up to thousands in savings.

Am I missing something here? In what ways is Idaho less expensive than CA?

Outside of car registration and maybe insurance premiums I can't think of much difference especially since salaries are much higher and more plentiful than Idaho.

This thread is in no way trying to insult or bash Idaho; I am just trying to find out the reason for all the taxes? Are there many social programs in Idaho or infrastructure projects that these tax dollars are going to?
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Old 08-17-2009, 09:05 AM
 
Location: Emmett Idaho
993 posts, read 3,240,123 times
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You have to Factor in about 25 million less people to tax so the ones that are in Idaho will bear the costs.
25 million less people makes it worth the price to live there
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Old 08-17-2009, 01:33 PM
 
Location: USA
526 posts, read 1,739,475 times
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Quote:
Originally Posted by DESERTRYDER View Post
You have to Factor in about 25 million less people to tax so the ones that are in Idaho will bear the costs.
25 million less people makes it worth the price to live there
I was thinking about this after I wrote the post. Thanks again for your time.
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Old 08-17-2009, 10:48 PM
 
Location: Boise, ID
1,356 posts, read 6,011,966 times
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I'll take a crack at this. I should put in the disclaimer that I moved to Idaho a year ago from California. And my thoughts on Idaho are based on living in the Boise area. So I can't truly say I am speaking for the state as a whole.

Quote:
Originally Posted by jja100 View Post
After doing some research on Idaho's taxes I have to wonder if the state is truly a "red" state.

When compared to CA you have the same 1% property tax on full market value except Idaho has no cap/limits for how high this tax can go relative to one's income.
Yes, but remember that the California real estate market is much more volatile. I bought a home there for $237k in 2002 that we sold in 2004 for $450k or so. Plus, with the all the local assessments the real rate that most people in home less than about 15 years actually pay is somewhere around 1.7% - 2.2%

Quote:
Originally Posted by jja100 View Post
When compared to CA you actually have a higher state income tax at 7.8% at a low 28k income bracket level.
That may be true at the lower end but the top rate in CA is 9.3% with a 1% surcharge at $1 million. That top rate might have just went up too. And before you start saying that the "rich" can afford it or deserve to pay more, remember that when you are a S-corporation it is really easy to have an AGI much higher than what you actually take home each month.

Quote:
Originally Posted by jja100 View Post
And while the state sales tax is roughly 2 percentage points less than CA you actually tax food and prescription drugs. In the end I find that this is practically the same amount.
Didn't the sales tax just go up in CA? Plus, there is the option there to pay add local sales taxes. In LA county the sales tax is now nearing 10%.

Quote:
Originally Posted by jja100 View Post
I am sure social values are quite different between the two states, although when it comes to fiscal conservatism it seems as though you are as far away from it as CA.
I don't really understand this statement. ID ended the year with a balanced budget. There were a lot of tough choices that the legislature and governor made here. Some of them were not popular but I didn't hear the complaining like the world was coming to an end like I remember hearing in CA. The mindset is very, very different. Much of the debate this year was over the legislature's refusal to approve the governor's gas tax hike that was something like a few cents per gallon. Anyone who thinks that the fiscal attitudes of CA and ID are pretty similar hasn't lived in both states or wasn't paying attention while living there. There really is a pretty big difference, particularly if you listen to the debates in each state capital.

Quote:
Originally Posted by jja100 View Post
It seems that WA is more fiscally conservative than Idaho since they don't have a state income tax which could add up to thousands in savings.
I can't really comment on WA. I researched it a little bit before choosing to move my business to ID but for a number of reasons I decided against it.

Quote:
Originally Posted by jja100 View Post
Am I missing something here? In what ways is Idaho less expensive than CA?

Outside of car registration and maybe insurance premiums I can't think of much difference especially since salaries are much higher and more plentiful than Idaho.
For us personally - car insurance is quite a bit less as the registration. Gas is generally cheaper and we tend to drive quite a bit less. Electricity, phone service and internet are less, food is a little less, housing is quite a bit less. Health insurance is more but the cost of going to the doctor is less (and most of the time I have went in there has literally been less than a 5 minute wait). I can't really compare salaries from state to state but the cost of living is a bit lower. For me, the quality of life is better by a factor of several times, and that is honestly not an exaggeration.

Quote:
Originally Posted by jja100 View Post
This thread is in no way trying to insult or bash Idaho; I am just trying to find out the reason for all the taxes? Are there many social programs in Idaho or infrastructure projects that these tax dollars are going to?
Idaho is not a really low tax state. I haven't looked at the rankings in a while but I imagine it is in the middle third. California is in the top five. Idaho has a moderate sales tax, moderate income tax and moderate to low property tax. I like that the base is broad.
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Old 08-18-2009, 01:57 AM
 
5,322 posts, read 18,196,487 times
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While the OP was correct in pointing out that ID does charge sales tax on food and prescriptions and CA does not, ID does not charge sales tax on anything for a funeral including the casket and CA does.

ID also does not charge a tax on services, i.e.- pet boarding, hair cuts, massages etc. Not certain where CA is on this?
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Old 08-18-2009, 03:38 AM
 
Location: USA
526 posts, read 1,739,475 times
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Quote:
Originally Posted by cleosmom View Post
While the OP was correct in pointing out that ID does charge sales tax on food and prescriptions and CA does not, ID does not charge sales tax on anything for a funeral including the casket and CA does.

ID also does not charge a tax on services, i.e.- pet boarding, hair cuts, massages etc. Not certain where CA is on this?
No taxes on services in CA either.
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Old 08-18-2009, 04:04 AM
 
Location: USA
526 posts, read 1,739,475 times
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Quote:
Originally Posted by Niners fan View Post
I'll take a crack at this. I should put in the disclaimer that I moved to Idaho a year ago from California. And my thoughts on Idaho are based on living in the Boise area. So I can't truly say I am speaking for the state as a whole.

Yes, but remember that the California real estate market is much more volatile. I bought a home there for $237k in 2002 that we sold in 2004 for $450k or so. Plus, with the all the local assessments the real rate that most people in home less than about 15 years actually pay is somewhere around 1.7% - 2.2%
I agree with the CA volatility. I guess this matters if you are a transient worker and you would only be staying in CA for a short period of time dictated by your occupation.

I am speaking for my parents who plan to retire in Idaho and I have been discouraging them from doing so.... they bought their home in cash over 20 years ago and only pay like .05% the value of their home due to proposition 13. I understand that not many people are so fortunate and that it favors a certain group of people but that is kind of the reason why I have been telling them not to move because they will never be able to afford to move back if they make a mistake.


Quote:
Originally Posted by Niners fan View Post
That may be true at the lower end but the top rate in CA is 9.3% with a 1% surcharge at $1 million. That top rate might have just went up too. And before you start saying that the "rich" can afford it or deserve to pay more, remember that when you are a S-corporation it is really easy to have an AGI much higher than what you actually take home each month.
While the income tax is higher, it is only marginally higher. Incomes in CA are much higher than Idaho and I was taken back by the fact that it is so high in Idaho for such a low income. If you make say a 25k salary in Idaho that can be roughly 2k in tax. Add that on top of your property tax and if it is the same as WA property tax than the two states are about balanced. If the total is higher in Idaho than the overall tax burden is less in WA.

Quote:
Originally Posted by Niners fan View Post
Didn't the sales tax just go up in CA? Plus, there is the option there to pay add local sales taxes. In LA county the sales tax is now nearing 10%.
Yes, sales tax went up one percentage point. It is 8.25% where I live but I don't buy anything but food and everything else I buy online from out of state and avoid tax and shipping charges. Honestly, I am not concerned with sales tax because there are so many ways to avoid it via paying in cash with small businesses or purchasing online from out of state.


Quote:
Originally Posted by Niners fan View Post
I don't really understand this statement. ID ended the year with a balanced budget. There were a lot of tough choices that the legislature and governor made here. Some of them were not popular but I didn't hear the complaining like the world was coming to an end like I remember hearing in CA. The mindset is very, very different. Much of the debate this year was over the legislature's refusal to approve the governor's gas tax hike that was something like a few cents per gallon. Anyone who thinks that the fiscal attitudes of CA and ID are pretty similar hasn't lived in both states or wasn't paying attention while living there. There really is a pretty big difference, particularly if you listen to the debates in each state capital.
Well, Californians can't really control state spending do to the lack of local government control by the people. I do find that protections such as Prop 13 limit the methods that the state can increase taxes. Sure they can raise sales and income but that means I will just spend less and work less. It is counter productive to raise taxes but the libs in this state don't get that yet.

Quote:
Originally Posted by Niners fan View Post
I can't really comment on WA. I researched it a little bit before choosing to move my business to ID but for a number of reasons I decided against it.
I personally am thinking about WA over Idaho because of the state income tax and I am young so this benefits me more than retirees with limited non-taxable income such as my parents. If it is worth it, they could move to Idaho and I can move to eastern WA to stay close since I have no brothers and sisters to watch over them.

Quote:
Originally Posted by Niners fan View Post
For us personally - car insurance is quite a bit less as the registration. Gas is generally cheaper and we tend to drive quite a bit less. Electricity, phone service and internet are less, food is a little less, housing is quite a bit less. Health insurance is more but the cost of going to the doctor is less (and most of the time I have went in there has literally been less than a 5 minute wait). I can't really compare salaries from state to state but the cost of living is a bit lower. For me, the quality of life is better by a factor of several times, and that is honestly not an exaggeration.
If you can elaborate on the cost of health insurance between the two states it would be greatly appreciated.


Quote:
Originally Posted by Niners fan View Post
Idaho is not a really low tax state. I haven't looked at the rankings in a while but I imagine it is in the middle third. California is in the top five. Idaho has a moderate sales tax, moderate income tax and moderate to low property tax. I like that the base is broad.
Yeah, apparently it isn't. Aside from the cheap utility rates and car registration I don't see a real advantage for a retiree.
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Old 08-18-2009, 10:24 AM
 
Location: Boise, ID
1,356 posts, read 6,011,966 times
Reputation: 944
^^ Just a follow-up on your last two comments.

Our health insurance right now is about 50% higher per month for a deductible that is twice what it was in So Cal. There is no Kaiser-type coverage here to help keep costs down. A BIG disclaimer on this though... our rates are based on two employees and we have quite a few more now. I am expecting new quotes in the next week or so and I expect them to be a lot lower. Still, the brokers I have spoken with have all told me that health insurance is higher here than in California.

You've doing your homework about retirement so you know that retirees fare better where the income tax is high and property taxes and sales taxes are low. WA and OR wouldn't fit that description in the Northwest.

I have found Idaho is more fiscally conservative than it seems you are seeing just on paper.
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Old 08-18-2009, 03:28 PM
 
Location: USA
526 posts, read 1,739,475 times
Reputation: 319
Quote:
Originally Posted by Niners fan View Post
^^ Just a follow-up on your last two comments.

Our health insurance right now is about 50% higher per month for a deductible that is twice what it was in So Cal. There is no Kaiser-type coverage here to help keep costs down. A BIG disclaimer on this though... our rates are based on two employees and we have quite a few more now. I am expecting new quotes in the next week or so and I expect them to be a lot lower. Still, the brokers I have spoken with have all told me that health insurance is higher here than in California.

You've doing your homework about retirement so you know that retirees fare better where the income tax is high and property taxes and sales taxes are low. WA and OR wouldn't fit that description in the Northwest.

I have found Idaho is more fiscally conservative than it seems you are seeing just on paper.
Yes, the biggest question is how much are property taxes for a 400k home in Boise or Coeur d'Alene, or Sandpoint? If you can give a ballpark figure it would help...

Also, what does property tax cover? Here in CA it covers pretty much nothing but some states cover garbage and sewer.

One thing I hated after moving to CA is they actually have a separate bill for waste water.
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Old 08-18-2009, 04:40 PM
 
Location: Wayward Pines,ID
2,054 posts, read 4,252,058 times
Reputation: 2314
This is in Kootenai county:

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