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Question Taxes are bigger in Texas than California!?!

Question Taxes are bigger in Texas than California!?!

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by: tinytim Active Indicator LED Icon 7 OP 
~ 2 years, 4 mos ago   Sep 10, '22 1:55pm  
Taxes are bigger in Texas than California!?!
 
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Everything's Bigger in Texas - Including Taxes, Which Are Outpacing California
 
As the Houston Chronicle reported, a graphic shared on Reddit's main economic forum illustrated how the vast majority of Texans pay more in taxes than Californians do. That's the case even though Texas does not levy a state income tax on individuals (and California does).
 
According to the ITEP's research, Texans whose salaries fall into the lowest 20% of income earners - those who earn less than $20,900 a year - pay about 13% of their income in state and local taxes. By comparison, Californians in the bottom 20% (who earn less than $23,200 annually) pay a rate of 10.5%.
 
That's not the only income group where taxes are higher in Texas than California, either: The middle 20% of earners in Texas - making $35,800 to $56,000 a year - pay 9.7% in state and local taxes .Meanwhile, it's 8.9% for middle income earners in Californian, whose pay ranges from $39,100 to $62,300 a year.
 
About the only Texans who fare better than Californians are the wealthy. The top 1% of earners in Texas - those making $617,900 or more annually - only pay 3.1% of their income in state and local taxes. That compares to a rate of 12.4% for top earners in California, who make $714,400 or more per year.
 
www.yahoo.com/now/ev erything-bigger-texa s-including-taxes-16 2135063.html
 
At least we have California beat on cost of living!!
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ParksideRes Active Indicator LED Icon 8
~ 2 years, 4 mos ago   Sep 10, '22 1:57pm  
@tinytim : Been telling people that for years, people still can't grasp it.
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AMCLady Active Indicator LED Icon 13
~ 2 years, 4 mos ago   Sep 10, '22 2:06pm  
@ParksideRes : I have too for the last 40 years.
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M1cha3lo0o Active Indicator LED Icon 7
~ 2 years, 4 mos ago   Sep 10, '22 2:10pm  
tinytim : Been telling people that for years, people still can't grasp it.
 
@ParksideRes : well explain it.
If state sales tax is 8.625% or something like that.
 
Explain how someone who makes $20,000 a year is spending 13% of their income in sales tax.
Texas has no state income tax.
So if a person making $20,000 a year spent
100% of their gross income ( which isn't possible ) they would only pay $1,650 -ish in state tax.
 
So how are they actually spending over $2,000 on state tax like this article states instead?
 
Where is the extra money coming from?
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ParksideRes Active Indicator LED Icon 8
~ 2 years, 4 mos ago   Sep 10, '22 2:28pm  
ParksideRes : well explain it. If state sales tax is 8.625% or something like that. Explain how someone who makes $20,000 a year is spending 13% of their income in sales tax. Texas has no state income tax. So if a person making $20,000 a year spent 100% of their gross income ( which isn't possible ) they would only pay $1,650 -ish in state tax. So how are they actually spending over $2,000 on state tax like this article states instead? Where is the extra money coming from?
 
@M1cha3lo0o : did you forget property? ESD? MUD? Lone Star? City taxes in a city? Those are all local taxes.
 
You're missing quite a lot
 
Reading the article would have enlightened you.
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M1cha3lo0o Active Indicator LED Icon 7
~ 2 years, 4 mos ago   Sep 10, '22 2:36pm  
MUD
 
@ParksideRes : Majority of the people in the bottom 20% are not paying property tax, they rent.
 
i was not factoring in property taxes ( or everything in property taxes because they are not paying them ).
What part of their rent that actually goes towards property taxes would be hard to figure but their rent would be way cheaper than renting in CA.
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ParksideRes Active Indicator LED Icon 8
~ 2 years, 4 mos ago   Sep 10, '22 2:41pm  
Majority of the people in the bottom 20% are not paying property tax, they rent.
 
@M1cha3lo0o : yes they do through their rent. You can't throw that out as they are actually paying that as a factor of their rent. Rents are entirely more than mortgages for same housing.
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Woodsman Active Indicator LED Icon 2 App
~ 2 years, 4 mos ago   Sep 10, '22 3:24pm  
Removed By Request
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M1cha3lo0o Active Indicator LED Icon 7
~ 2 years, 4 mos ago   Sep 10, '22 3:29pm  
You can't throw that out as they are actually paying that as a factor of their rent. Rents are entirely more than mortgages for same housing.
 
@ParksideRes : Yes but once you factor in the cost of living and the the difference of the property tax inside rent prices is nothing compare to the difference from that state's cost of living.
ex: the portion that goes to property tax from rent in TX is 3% higher than CA, but please ignore that in CA the rent is 30%+ more just from the regional cost of living. We omit that because it is a not tax related. Emoticon
 
I just know my income taxed at CA income tax rate is more my property tax alone....
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ParksideRes Active Indicator LED Icon 8
~ 2 years, 4 mos ago   Sep 10, '22 3:30pm  
property tax inside rent prices
 
@M1cha3lo0o : California's is too. And it's percentages, COL is factored by that as Taxes are part of that.
 
You're still actually missing a lot
 
This is all percentages of income. It's all squared off.
 
This response is invalid.
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M1cha3lo0o Active Indicator LED Icon 7
~ 2 years, 4 mos ago   Sep 10, '22 3:55pm  
You're still actually missing a lot   This is all percentages of income. It's all squared off.   This response is invalid.
 
@ParksideRes : What is invalide?
For a renter their rent, and sales tax, what else is missing that actually makes a faction of a percent?
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Woodsman Active Indicator LED Icon 2 App
~ 2 years, 4 mos ago   Sep 10, '22 4:04pm  
Removed By Request
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RajunCajun Active Indicator LED Icon 3 App
~ 2 years, 4 mos ago   Sep 10, '22 4:49pm  
I was shocked at how high property taxes are here.
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Olaf Active Indicator LED Icon 3
~ 2 years, 4 mos ago   Sep 10, '22 4:53pm  
Taxes are bigger in Texas than California!?!
 
@tinytim : But I'm in the top 0.01%, so I'm doin' just fine in TX.
Just yankin' your chain...I'm gettin' screwed.
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tinytim Active Indicator LED Icon 7 OP 
~ 2 years, 4 mos ago   Sep 10, '22 5:28pm  
Look up people living out of their car in California on YouTube. Anybody that thinks the have it harder in Texas than a borderline communist California needs their head examined. I'd need half a million more dollars in my pocket in California to reach the same lifestyle I have in Atascocita, Texas. Taxes are a red herring. There's a thousand different ways to turn that screw.
 
@Woodsman : Totally agree cost of living is better in Texas, despite the taxes.
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mastiffrex Active Indicator LED Icon 7
~ 2 years, 4 mos ago   Sep 10, '22 5:48pm  
@RajunCajun : Me too - Louisiana may have a state tax but their property tax is nothing - nice homestead exemption. If you make no money one year in Louisiana then you don't pay state taxes, make no money in Texas and you still get that huge tax bill. Teachers are paid better here though than in Louisiana although I don't think the salaries are great in either
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