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A state/metro with a low unemployment rate. After graduating college in NJ in 2005 it was a chore to find FT work especially between 2008-2012. Had some PT seasonal/temp jobs but that's been it. Was poor to the point where I had to move to Philthy in late 2012. Big difference, especially west of there in the burbs. I'm not even close to wealthy but I've been working FT since 2013 and have made more money than I ever did or could have back in Jersey. I'm able to pay down my student loans and even have enough to go on trips(Wrestlemania 32 in Dallas). If I didn't have debt, didn't go a bit crazy with pizza/fast food and found myself a more affordable crib I'd probably have 10K in savings by now. Numerous ads compared to North Jersey, even today. Both areas I've lived in are blue so it's not really a red vs blue thing.
Washington state has plenty of job openings in the industrial field, as well as Phoenix, Indy, Cincy, Columbus, heck even wack-azz Chicago.
I found financial success by living in a micropolitan area. If you are exceptionally talented, you can earn a lot of money in a high cost of living area such as southern California or New York City. Most of the people there are struggling, however.
It's also difficult to earn a good living in a college town. There are just too many young highly educated people to compete against. Why hire you with a Bachelor's degree when they can high a PhD student for low wages?
Do you not understand that whatever adjusted income reduction you received on your federal tax return, was more than outweighed by the state income taxes you paid to NY?
If you made $100,000, and paid NY $16,000 in state income taxes, your federal taxable income would have been reduced to $84,000. Let's say your adjusted federal income tax rate was 21%, your total tax burden = $17,640 federal income taxes + $16,000 in state taxes, total income taxes paid = $33,640
If you made $100,000 in TX, you paid $0 in state income taxes, so you get no deduction. Let's say the higher bracket makes your adjusted federal income tax rate 25%. $100,000 x .25 = $25,000 federal income taxes + $0 state taxes. Total income taxes paid = $25,000
You still came out ahead $8,640 vs a state with a state income tax.
There is no mathematically possible way that the deduction will "even out" the overall income tax burden vs. a no state income tax state unless the government taxed you at 100%, or possibly if the deduction moved you into a non-taxable bracket.....
You may have reduced your Federal tax burden, yet, in your example, you still paid more overall tax because you had to pay state income tax to NY versus the person living in TX. Secondly, with tax reform, things are even worse when you live in NY as there is now a limit on the state tax deduction.
You may have reduced your Federal tax burden, yet, in your example, you still paid more overall tax because you had to pay state income tax to NY versus the person living in TX. Secondly, with tax reform, things are even worse when you live in NY as there is now a limit on the state tax deduction.
The limitation to my knowledge is property tax related not on state income tax through the W-2. So that would not affect much people who aren't trying to claim deductions based on state property taxes.
Secondly - Texas apparently doesn't like to approve unemployment insurance claims compared to NY. (Most conservative states they reject UE claims at a higher rate) So you need to factor that in as well. If you lose your job in TX you get $0. That extra $8k is worth having at least something in your pocket if your employer decides to kick you to the curb.
From my own experience, being a blue collar worker doesn't bode well in a red state. Red states are generally cozy with big business and pass lax business laws that screw over the workforce. Blue states generally have better standard wages. That's one of the reasons I left Tejas for PA. Taxes are nuts over here, though, and I try to stay off the turnpike as much as possible when driving my car. As far as politics are concerned, I vote for who I think is the better candidate. The letter next to their name doesn't matter to me.
You may have reduced your Federal tax burden, yet, in your example, you still paid more overall tax because you had to pay state income tax to NY versus the person living in TX. Secondly, with tax reform, things are even worse when you live in NY as there is now a limit on the state tax deduction.
Re-read what I wrote, my example was making the exact same point you are making, not the opposite point....
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