Quick Links
Links
Site Links
Categories
Calendar
| Sun | Mon | Tue | Wed | Thu | Fri | Sat |
Archives
XML/RSS Feed
Statistics
Total entries in this blog:
Total entries in this category:
Published On: Dec 09, 2003 10:43 AM
Total entries in this category:
Published On: Dec 09, 2003 10:43 AM
Comparing Liberal and Conservative States
I decided to look at the tax schedules for both
Colorado and California to see which was higher. Both my mom and I guessed that
Colorado would be more expensive. The results were interesting.
Last night I was pondering a few big questions about
the future of my business (as a computer consultant). I was first wondering if I
should convert from a Sole Proprietorship to either an LLC or S-Corp, and second
I didn't know which state I should claim residency under. You see, I own places
in Colorado and California, and I hope to be able to split my time between them.
Therefore, the question of which state owns my business's (and my personal) flag
should depend on which make better financial
sense.
Let me just mention right now how happy I am to no longer live in New York City for that (financial) reason. In NYC you get hit with federal, state AND CITY income tax, and their rates were rather high. From what I can tell, the City of Los Angeles has no such income tax.
I decided to look at the tax schedules for both Colorado and California to see which was higher. Both my mom and I guessed that Colorado would be more expensive. The results were interesting.
If you make only $20,000 in a year (which will be my situation this year) then in Colorado you would pay about TWICE AS MUCH state tax than in California. On the other hand, if you make $50,000 in a year, it swings the other way, where you'll pay a bit more tax in California than Colorado. I looked closer, and the intersection point was at exactly $40,000 that you would pay the same in both places.
In conclusion: California (a liberal and Democratic state) has much lower taxes for the poorer people, and Colorado (a conservative Republican state) has much lower taxes for the richer people. I didn't actually expect the result to be so obviously cut-and-dried! It just seems to support the notion that Republicans are all about tax cuts for the rich.
Let me just mention right now how happy I am to no longer live in New York City for that (financial) reason. In NYC you get hit with federal, state AND CITY income tax, and their rates were rather high. From what I can tell, the City of Los Angeles has no such income tax.
I decided to look at the tax schedules for both Colorado and California to see which was higher. Both my mom and I guessed that Colorado would be more expensive. The results were interesting.
If you make only $20,000 in a year (which will be my situation this year) then in Colorado you would pay about TWICE AS MUCH state tax than in California. On the other hand, if you make $50,000 in a year, it swings the other way, where you'll pay a bit more tax in California than Colorado. I looked closer, and the intersection point was at exactly $40,000 that you would pay the same in both places.
In conclusion: California (a liberal and Democratic state) has much lower taxes for the poorer people, and Colorado (a conservative Republican state) has much lower taxes for the richer people. I didn't actually expect the result to be so obviously cut-and-dried! It just seems to support the notion that Republicans are all about tax cuts for the rich.
Posted: Fri - December 5, 2003 at 10:02 AM