If you are a millionaire living in New Jersey or California, you can consider. This is because the employees in these States charge taxpayers some of the highest rates of the country, while others, such as Alaska, load no income tax at all. When you are bringing home much pulp, these differences add up.
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"If you live in a State like New York, New Jersey or any of the States of the coast, it will have a real impact on your bottom line," says Kathleen Thies, the tax firm CCH state tax analyst. She says that the budget pressures in many States have led legislators to implement these large increases in high employees. In California, for example, added 0.25% for each taxation for 2009 and 2010, which brings superior tax marginal rate in that State to 10.55%. "Politically, it is never a large movement to raise taxes, but the States were in difficulty, and this is why they take these measures," said Thies.
It is not just income taxes, either. Mark Robyn, tax Foundation staff Economist, a research group based in Washington, D.C., said when you consider the burden States tax everything necessary, including sales and local taxes as a percentage of the revenue of the State, the tax burden in New Jersey is 12.2%, approximately double that of Alaska.
The most expensive States for high earners tend to be on the coast and West, said Thies, but generalizations are difficult to make, especially because tax laws change rapidly. In New Jersey, for example, the so-called "tax millionaire" expired last year, when the highest rate, which applies to those who earn more than $500,000, fell from 10.75% to 8.97%. This new rate, said Thies, "is still very high as far as state tax rates."
Other States still impose "taxes of millionaire," which refer to the high taxes for earning a high, often $250,000 or $500,000 salary and more. "It is a bit of a misnomer because it applies only to the millionaires," says Robyn. "[The millionaire fees] do not reflect the pattern of lower tax rates where it increases each $10,000." "Once you hit a certain level of income, you get hit with all these additional taxes," he added. Even in Connecticut, which loads a tax rate high of 6.5 per cent relatively modest income over $ 500,000, is considered to impose taxes of millionaire because the next rate starts at $10,000. In other words, big employees to sense covered.
Hawaii is also expensive with a tax rate of 11 percent top income. The District of Columbia costs a high rate of 8.5%, but has also frozen the personal and deductions exemptions through 2013, which means that many taxpayers will have more. Winner consumed more than $125,000 are facing a new 10.8% tax bracket, and those earning more than $250,000 will now pay 11% through 2011. New York to win up to $500,000 pay 8.97 per cent, while individual filers earning more than $200,000 also pay relatively steep rate of 7.85%.
Thies says that the States which have marginal high tax rates more than 6 per cent are relatively expensive. low-rate States such as Arizona, New-Mexico and the Mississippi charge high rates of about 5 per cent or below. Alaska, Florida, Nevada, New Hampshire, South Dakota, Texas, Washington and Wyoming does charge not General of taxes. Of course, residents still finance the activities of the State in other ways, including through property taxes and sales taxes, but the overall tax burden on the residents of these spots tend to be lower.
So high salaried "voting with their feet," as economists like to say, go to less expensive States? Sometimes, says Robyn. "Economists argue that taxes on the behaviour of people," he said. When people can easily choose between two neighbouring States such as Maryland and Virginia, they probably account taxes, especially if they are employed high with a heavy tax burden and the means to travel.
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It is one of the reasons New Jersey to get rid of his millionaire tax, said Thies. "This was not very palatable." It puts a freeze on people who live in New Jersey, where they have a lot of money, and [legislators] want not the State of people drive, "she adds."
Retirees, in particular, see often poignant, and hot weather is not the only reason Florida is a popular choice. In addition to its lack of State tax revenue, the State not income tax social security or is retirement income. According to Thiès, pensioners are paying particular attention to how tax rates differ by State now, in the wake of the recession, when was beaten offering popular both of. When they choose to live in retirement, she said, plays a major role in the way of life that they can afford, in part because of what tax rates differ.
According to the analysis of Thies, Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming are seven States that do not impose State taxes on retirement income in addition to the State requiring income tax do not. New Hampshire and Tennessee, at the same time, charge taxes on the income only dividends and interest (5% and 6%, respectively.) Maine, fresh on the other hand, a relatively steep rate of 8.5% on the income from $19,950 ($39,900 for joint filers). Federal law gives States wide latitude in how they decide to social security tax and revenue, which is why rates vary so widely from retirement.
The good news for big earners is that many recent tax increases are applicable for a limited time only. In Oregon, for example, the recent increase will be set aside in 2012, and Thies, it expected other States to reverse their increases in the rate of tax as the economy and the budgets of the State, thus, improve slowly.
But when many States raise their rates at the same time as they are now, it may be more difficult to get around the tax man. Unless, of course, you consider a move to Alaska.
@ alphaconsumer
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