79 sats \ 7 replies \ @0xbitcoiner OP 8 May \ parent \ on: What Frustrates Americans About The Tax System | Tax Burden of Every U.S. State econ
As a European, I find the income tax rates in all US states pretty nice. Here in Europe, the rates are typically between 40% and 50%. The system here is quite different, perhaps more comparable to the Canadian system, but even so, our rates are very high. In my opinion, it is one of the most unfair taxes.
These stats are also deceptive sometimes. They are good for doing broad comparisons but if one is considering relocating for example, you'd want to make comparisons for your specific situation.
Texas for example has very high property tax rates. But, their property prices are much lower in many places than somewhere like California. That said, big states like Texas and California also have large differences within them when it comes to cost of living.
Then you need to consider the progressive tax rate vs. actual real tax rate. Then there are fees for things like licenses, permits, etc. I was surprised to find that some states that people think would be lower on the tax burden front are actually equal for someone in my situation. I always advice people to do their own research. I know several people that relocated based on reports like this only to find they weren't saving much money at all.
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Property taxes in Texas are 5 percent or less depending on your county
California taxes are too high. Also capital gains are taxed as income. No distinction between short and long term capital gains in California.
The high tax states also have the largest deficits and debt. They also have many government employees, almost all unionized and very generous pensions and medical care.
Exactly.
I like that they average out total tax burden in this way, but there are other ways to look at it, too. For one thing, you don't earn as much in some of these places, which makes taxes as a share of income misleading.
A different useful metric would be something like after-tax cost-of-living-adjusted income. That has its own problems too, of course.
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For reference, those are just the state and local taxes. You have to add about 30% for federal taxes, to get a sense of actual tax burdens.
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Ah, I see! I misunderstood that. Thanks for clarifying.
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