State Income Tax - Is it Worth it?

Discussion in 'Taxes and Accounting' started by cashonly, May 18, 2002.

  1. No.
     
    #51     May 22, 2002
  2. cartm

    cartm

    this is probably a stupid question but i dont know the answer, how does florida pay its state employees if it doesnt have these taxes other states have, it just sounds a little too good to move to nevada or florida, save a bunch of money, but the state has to make money to pay its employees, where or how do they get it, thanks
     
    #52     May 22, 2002
  3. Sales Tax and some other taxes other than personal income.
     
    #53     May 23, 2002
  4. cartm

    cartm

    other than sales tax does nevada or florida penalize small business or self employed individuals from moving to their state. are there any other traders in pa who see where I am coming from, with property taxes so high in this state as well as income tax and depending on where you live a bunch of other taxes what are the benefits of trading here, as opposed to florida specifically, but more generally florida or nevada. to you guys and gals in florida, in your opinion is it worth the move, reagrding taxes, I know the weather is much nicer. forbes had a article on this few weeks ago, listed ft lauderdale and west palm in the top 50 places to start a biz, just wondering. I will probably contact the chamber of commerce down there or the state government, but I would like opinions from people like me who trade. thanks
     
    #54     May 23, 2002
  5. Turlo

    Turlo

    We make our money from tourists..............hotel tax, sales tax etc.

    I am not sure about Nevada, but it is probably the same.

    To answer the question if Ft Lauderdale have very many people in their 20's, come down and take a look......... I think you will like what you see.....Sun tans and the need to put a bathing suit on all year round makes for a beautiful population of woman..
     
    #55     May 23, 2002
  6. cartm

    cartm

    thats pretty much what i wanted to hear but didnt want to ask. good looking women +no income tax+nice weather= very cool thanks
     
    #56     May 23, 2002
  7. Austin is not quite as bad on the humidity scale as Houston. Houston is the true sauna. Right now Austin shy some annual rainfal, so the humidity is slightly lower. However, it does get toasty in the summer, chases out the also-rans. In Texas if the heat gets to ya, just suck down more hot sauce (salsa!). If your burnin' from the inside, you don't notice the heat on the outside.

    Midland! Man, have you been to the West Texas Permian basin? It is wide open country, but don't expect scenery or vegetation. Besides, Midland is awfully close to Odessa. Say no more!
     
    #57     May 28, 2002
  8. The issue for states like Texas is that while they have no income tax it does have high sales taxes. Texas cities approach 8.25 - 8.5% sales taxes, which are mostly not deductible on the federal income tax return.

    Texas also has cumbersome property taxes, which while deductible, are a current mess in relationship to school funding. The state is in a revenue shortfall and will be looking as some revenue plans that will increase sales, property, "franchise" and other taxes. Texas' franchise tax is a defacto busienss income tax. Not sure about the treatment for traders, but may be arguable that traders whose primary income is from trading may be subject to this tax.

    So an orbiting issue is not just yea or nay state income taxes, but the deductibility of the various state levies.
     
    #58     May 28, 2002
  9. You raise very good points - I would be interested to see a comparison of the total effective tax burden (accounting for federal deductability, hidden taxes, etc.) across the states - I'm guessing that in the final calculation they are roughly equal between states of comparible populations...
     
    #59     May 28, 2002
  10. John_Galt

    John_Galt

    Every state gets its money one way or another.
    Non-tourist places get theirs by way of citizens (income or property tax)
    Tourist states makes it up in sales tax (citizens and tourists), entertainment taxes, hotel taxes, etc.
    Some states make up the difference by taxing a particular industry more. (In Texas, it is oil. In the Midwest, it's steel. In Nevada, it's gambling) Guess what happens when the local economy turns :).
    Also some states use the "We don't need no stinkin' taxes" as a marketing ploy. They neglect to mention the COUNTY and/or CITY income taxes and fees. And some have relabeled their taxes as "fees". Try parking for free in downtown Chicago, Ill.

    So in short, it's not choosing among the 50 states. It's more like choosing among the thousands of cities and towns.
    (just giving you an idea of what you're up against)
    Hopefully some helpful links
    http://tax.state.nv.us/taxnew/overview.htm
    http://www.bankrate.com/brm/itax/state/state_tax_home.asp
    http://www.taxadmin.org/
     
    #60     May 28, 2002