Midwest Taxes: Yikes! (Des Moines, West Des Moines, Colo: 2015, rental, home)

[QuadCityImages]

One thing that affects how Iowa's tax rates end up, is that we are one of 6 states that allow deducting your federal taxes paid. So if you do pay 25% federal taxes, you only pay state taxes on your remaining 75% of your gross income. It makes a big difference, especially for high income people, but it hurts Iowa when people just compare tax brackets and rates against other states with lower tax rates, but no federal deductability.

[Serious Conversation]

Originally Posted by capitalcityguy

I don't know anything about Maryland, but it quite frankly isn't that expensive to live in the midwest. If one catagory of expenses seems high to you, than there is another that is most likely going to be cheaper. There is no way, for example, Des Moines metro wins these acknowledgements if cost of living is out of control. In fact, it is the low cost of living that gets it on may of these lists.


Here is a link to many more: Des Moines Rankings | 2014 Rankings

The cost of living overall isn't out of control but taxes are extremely high for middle and lower income Iowans. The reason DSM gets on all these lists is that the economy is on fire, which can make up for the taxes.

[capitalcityguy]

^ I believe if you look at most (all?) rankings when they are comparing cost of living between places, they include average tax obligations. When Des Moines ranks high on these lists, cost of living is normally one of the main factors that is mentioned in favor of Des Moines.

[Juice Malone]

I love in Ankeny you get money back in education for kids. Other places can't always say the same

[seain dublin]

Originally Posted by Meemur

I used to think that I wanted to live where the cost of living is low, but after dealing with hospitals, restaurants, and retail stores staffed by the graduates of sub-standard public schools, I've since changed my mind. I'm older now and appreciate literate, English-speaking help.

OP, people don't necessarily live in Iowa because taxes are low, although as pointed out, they are competitive in some aspects, and certainly lower than many parts of California, as co-workers frequently tell me. There are other reasons to be here.

Best of luck with your search!

Maybe you should expand on that for the OP, it certainly isn't your weather or scenery.

[atler8]

Originally Posted by seain dublin

Maybe you should expand on that for the OP, it certainly isn't your weather or scenery.

Since you're apparently knocking Iowa scenery & weather, pray tell if you've ever really visited the state & where you live please.
Living away from Iowa in Georgia now for 35 years, a place normally considered to have better weather overall & more variety of scenery than Iowa, I've come to realize that I'd have to give Iowa much higher marks on overall quality of life than Georgia. And it's really not even close...
How does your own state stack up on quality of life concerns, seain dublin?

Meemur by the way is a fairly new migrant to Iowa & overall speaks quite favorably of her adopted state.

[lepoisson]

Iowa and most of the upper Midwest are known for having higher taxes. But, the income is more than other parts of the Midwest.

Our income taxes are fairly low here in MO, but the sales tax in my area is almost 9%, and the property tax on homes/vehicles is a little ridiculous.

Sure, Iowa may not be as beautiful as Yellowstone, but the cost of living is lower than most of the East Coast, the schools are good, housing costs are reasonable, and the people are friendly.

Probably the main reason people aren't moving to the Midwest instead of the Southeast is because of the weather.

[Meemur]

Originally Posted by lepoisson

Probably the main reason people aren't moving to the Midwest instead of the Southeast is because of the weather.

My friends in Duluth like to say, "Forty below keeps the riff-raff out."

[lepoisson]

Originally Posted by Meemur

My friends in Duluth like to say, "Forty below keeps the riff-raff out."

Interesting that you should mention that. I've noticed that the countries and states with the coldest climates, often have some of the lowest crime.

How much crime do places like Norway and Sweden have? Very little.

Obviously there are cities in colder states which may have crime problems, but the state as a whole is generally low-crime.

[North Beach Person]

Originally Posted by lepoisson

Iowa and most of the upper Midwest are known for having higher taxes. But, the income is more than other parts of the Midwest.

Our income taxes are fairly low here in MO, but the sales tax in my area is almost 9%, and the property tax on homes/vehicles is a little ridiculous.

Sure, Iowa may not be as beautiful as Yellowstone, but the cost of living is lower than most of the East Coast, the schools are good, housing costs are reasonable, and the people are friendly.

Probably the main reason people aren't moving to the Midwest instead of the Southeast is because of the weather.

And jobs, or lack thereof. People will move for money, the weather be damned.