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Texas is America Inc's new centre of gravity

economist.com

11–20 of 45 posts

Re: Texas is America Inc's new centre of gravity

#11
post #7

Earlier quoted context omitted.

people move to Texas thinking it has low taxes. It doesn't. Washington state has a much lower tax burden. For a normal earner, California has a lower tax burden than Texas. It is surprisingly insanely high tax. Of course California also has a much larger safety net than Texas. So for most working people it's a no brainer as to which state is better

As someone who lives in California and pays state taxes, how would Texas have a higher tax burden if it doesn't charge state tax?

[deleted]

Re: Texas is America Inc's new centre of gravity

#12
post #7

Earlier quoted context omitted.

people move to Texas thinking it has low taxes. It doesn't. Washington state has a much lower tax burden. For a normal earner, California has a lower tax burden than Texas. It is surprisingly insanely high tax. Of course California also has a much larger safety net than Texas. So for most working people it's a no brainer as to which state is better

As someone who lives in California and pays state taxes, how would Texas have a higher tax burden if it doesn't charge state tax?

Texas charges quite high property taxes compared to many other states

Re: Texas is America Inc's new centre of gravity

#13

Earlier quoted context omitted.

As someone who lives in California and pays state taxes, how would Texas have a higher tax burden if it doesn't charge state tax?

Texas charges quite high property taxes compared to many other states

True, but in my experience grandparent is a bit full of it. Yes property taxes are higher, but what op leaves out is that the values of homes are like for like 2-3x more expensive in California. So in the end I would probably pay around the same tax for a like for like home in California as Texas, simply because of the value of the home. Then we must consider the state income tax of California, which is a nonzero differential to that of Texas’ state income tax

Re: Texas is America Inc's new centre of gravity

#14

Earlier quoted context omitted.

As someone who lives in California and pays state taxes, how would Texas have a higher tax burden if it doesn't charge state tax?

Texas charges quite high property taxes compared to many other states

IIRC only New Jersey and/or Connecticutt have higher property tax rates. I know that Tennessee's are about a quarter of Texas'.

Re: Texas is America Inc's new centre of gravity

#15

Earlier quoted context omitted.

Texas charges quite high property taxes compared to many other states

True, but in my experience grandparent is a bit full of it. Yes property taxes are higher, but what op leaves out is that the values of homes are like for like 2-3x more expensive in California. So in the end I would probably pay around the same tax for a like for like home in California as Texas, simply because of the value of the home. Then we must consider the state income tax of California, which is a nonzero dif…

My understanding is that property taxes in Texas can also grow a LOT year over year if your town gets more popular, which isn't the case in California

Re: Texas is America Inc's new centre of gravity

#16
post #6

California is an incredible example of how to drop the ball when running a powerful state. Texas is of course on the other end of the spectrum in terms of regulation and being business-friendly. Something more in the middle of the two is obviously ideal.

It is astounding how many of CA's problems stem from across the board downzoning post 1960s.

Re: Texas is America Inc's new centre of gravity

#17
post #6

California is an incredible example of how to drop the ball when running a powerful state. Texas is of course on the other end of the spectrum in terms of regulation and being business-friendly. Something more in the middle of the two is obviously ideal.

California's problems are going to magnify as time goes on. The state budget has always been a fiction they could paper over because the state had high growth. As growth slows it becomes harder and harder to provide services using debt.

Re: Texas is America Inc's new centre of gravity

#18
post #4

> In the early 2020s Texas was luring in remote workers And not a single one of the people I know that moved there want to still live there. ymmv I guess

Oddly enough, I don't know too many people who moved to Austin, but they're all still there AFAIK.

Re: Texas is America Inc's new centre of gravity

#19
post #10
post #7

Earlier quoted context omitted.

people move to Texas thinking it has low taxes. It doesn't. Washington state has a much lower tax burden. For a normal earner, California has a lower tax burden than Texas. It is surprisingly insanely high tax. Of course California also has a much larger safety net than Texas. So for most working people it's a no brainer as to which state is better

What is high tax in Texas, much less insanely high? There is no income tax. Property taxes are okay-ish. It has a standard sales tax. > Of course California also has a much larger safety net than Texas. California alone accounts for a third of the homeless population in the U.S.

How many homeless people in California are actually from the state? Cause it seems like within CA, they move to big cities. Democrats then say that high-valued real estate is causing homelessness, and Republicans blame lack of law enforcement, but I don't see how it's either of those.

Re: Texas is America Inc's new centre of gravity

#20
post #7
post #4

> In the early 2020s Texas was luring in remote workers And not a single one of the people I know that moved there want to still live there. ymmv I guess

people move to Texas thinking it has low taxes. It doesn't. Washington state has a much lower tax burden. For a normal earner, California has a lower tax burden than Texas. It is surprisingly insanely high tax. Of course California also has a much larger safety net than Texas. So for most working people it's a no brainer as to which state is better

Even when you look at those rankings that take property tax into consideration, CA is way higher than TX. And the people who see a dime from the CA safety net aren't the ones paying property tax.
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