California vs. Texas, Tax Division

[Mick]

Apparently, Texas has a higher tax  burden that California, when all taxes are factored in:

https://twitter.com/mattsheffield/status/1396555310727196675/photo/1

https://twitter.com/mattsheffield/status/1396555310727196675/photo/2

These graphs from the Institute for Taxation and Economic policy show that Texas has a much tougher tax burden on the middle class than California.

[Legend]

I have lived for extended amounts of time in both and can attest to the unintended message of these posts:

It’s better to be perpetually poor in california and it is better to be rich and/or upwardly mobile in Texas.

Well, it actually might be worse to be middle class in california because to be middle class you have to live like a poor Texan.

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Sic transit gloria mundi (so shut up and get back to work)

[rjnwmill]

Mick, sort of CS I admit, but without remorse I’ll ask a question. My gut suggests there is a qualitative and significant difference between a tax on income and an ownership tax on an asset that has been increasing in value.  (Property tax) In one case the taxpayer is having his net worth reduced directly by the amount of the tax. In the other, the taxpayers net worth may well increase if the increased valuation on the asset exceeds the taxes paid.

Do you have a comparison of effective tax rates, by this I mean the impact on wealth accumulation in the two states?  My initial thoughts cause me to think of Lynyrd Skynyrd.

Here's a toast with one last pour, may it last forever and a minute more;
Good fortune seems to you have sung, to live and love way past long

[Beeg_Dawg]

I’ve read the Bloomberg article the graphs are based on.  I have a difficult time swallowing its analysis when it states the difference in annual rent between Seattle and San Fransisco for a 4 bedroom condo is  $7230.  Uh, not exactly, unless the comparison is basement condo with vermin compared to a high rise view of Alki Point.  $2k/month is more like it.

[gpn38]

The group that did the research is “ non partisan” but known for their left wing tilt. People are voting with their feet. That is all I need to know.

[Author]

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