The Myth of Super Low Taxes in the Lone Star State.

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Texasmoneyman300
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02 Aug 2024, 4:15 am

Hi everybody,
I am a long-time resident of the great state of Texas.I have lived in the Lone Star State all my life.Texas is often times mistaken as a low tax state.We get many people who move here for the supposed low taxes from places like California New York and Chicago.They think that because we have no state income tax but believe me we make up for it in other ways.We have high property and sales taxes.

Many people have to pay thousands to tens of thousands in property taxes on their homes so in many cases they are not any better off depending on the state they are coming from.My parents pay a lot in property taxes every year.But I just think its a myth that taxes are low in the Lone Star State.I would say they are moderate but not high compared to some places but the property taxes are some of the highest in the entire country.People who move from out of state are shocked at their property taxes that they have to continue paying forever even after the mortgage is paid off.Our property taxes are so high its like you never really own your own home.I have heard of people moving to places like New Mexico for much lower property taxes.



funeralxempire
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02 Aug 2024, 4:45 am

This doesn't surprise me. The state has to pay it's bills one way or another.


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Texasmoneyman300
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02 Aug 2024, 5:02 am

funeralxempire wrote:
This doesn't surprise me. The state has to pay it's bills one way or another.

True.The government will get its cut no matter what methods are used.



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02 Aug 2024, 5:14 am

If you are on the LGBTQ community you may want to move to New England.
I know a lesbian manager that has been running her department for thirty years. Best running department in the company! They are lucky to have her!
She has brought her partner to company outings.
Provincetown is the favorite vacation spot of the gay community for a long time. But the whole area has become friendly to those in the LGBTQ community.



funeralxempire
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02 Aug 2024, 5:21 am

Texasmoneyman300 wrote:
funeralxempire wrote:
This doesn't surprise me. The state has to pay it's bills one way or another.

True.The government will get its cut no matter what methods are used.


Although, I'd argue it's not so much it's cut as enough to pay for it's obligations.

Things tend to go badly for governments that don't pay their bills, in particular for the party that makes the decision. If they're lucky it only ruins their credit rating (which tends to cause further economic harm) but it can also go much worse than that.

Arguments can be had over whether any specific expenditure should continue going forward, but they really have no choice to but to pay for everything they've already agreed to pay for.

In the case of Texas it might be proof that an ideological attachment to not having income tax just causes other taxes to be worse, which can often lead to a much more regressive distribution of the tax burden.


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“Anyone who wants to thwart the establishment of a Palestinian state has to support bolstering Hamas and transferring money to Hamas, this is part of our strategy” —Netanyahu
"Many of us like to ask ourselves, What would I do if I was alive during slavery? Or the Jim Crow South? Or apartheid? What would I do if my country was committing genocide?' The answer is, you're doing it. Right now." —Former U.S. Airman (Air Force) Aaron Bushnell


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02 Aug 2024, 11:27 am

I agree, as someone who has lived for years in rural Indiana. Real estate taxes are lower per square foot, but you probably own more land than you would in a city, so actually not that much lower. And what do the taxes cover? Unlike in the city, after real estate taxes I still have to pay for my own well water pump, water softener system (too many minerals in the water is bad for pipes and appliances) + chlorine injection system (bacteria in the water) + reverse osmosis (to make the water drinkable again), septic system, private garbage pickup, the firefighters and EMTs are volunteer, and the 'police' are from the country sheriff's office so they have to cover a very large area. Plus, instead of walking to the grocery store, etc., every time I leave my house I'm driving for at least 30 minutes each way to run errands. Gas, car maintenance, and insurance add up as a result.

States that try to pretend that somehow they're cheaper to live in are hiding the fact that you're still paying, somehow. A medical emergency in areas like mine is much more likely to kill you because it will take longer for the ambulance to get to you, and longer still to get to an ER (and it won't be a well-staffed ER). Sales tax on essentials like food and medicine is regressive. And less money in the coffers means maintenance, repairs, and long-term planning are all negatively affected.

It's not really cheaper, it's just that quality of life is valued more cheaply....for the bottom 99.9%.


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BTDT
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02 Aug 2024, 12:35 pm

I fully recovered from a stroke. I'm sure it helped that I was at an office only minutes away from the ambulance garage. And then they took me to Hartford Hospital, which has a trauma center and rehab ward!

Taxes aren't too bad because we have a commercial area with Target, Walmart, and four grocery stores!
Folks in Hartford wish they had one of our big grocery stores!



Texasmoneyman300
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03 Aug 2024, 2:06 am

funeralxempire wrote:
Texasmoneyman300 wrote:
funeralxempire wrote:
This doesn't surprise me. The state has to pay it's bills one way or another.

True.The government will get its cut no matter what methods are used.


Although, I'd argue it's not so much it's cut as enough to pay for it's obligations.

Things tend to go badly for governments that don't pay their bills, in particular for the party that makes the decision. If they're lucky it only ruins their credit rating (which tends to cause further economic harm) but it can also go much worse than that.

Arguments can be had over whether any specific expenditure should continue going forward, but they really have no choice to but to pay for everything they've already agreed to pay for.

In the case of Texas it might be proof that an ideological attachment to not having income tax just causes other taxes to be worse, which can often lead to a much more regressive distribution of the tax burden.

Good point.



Texasmoneyman300
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03 Aug 2024, 4:16 am

BTDT wrote:
If you are on the LGBTQ community you may want to move to New England.
I know a lesbian manager that has been running her department for thirty years. Best running department in the company! They are lucky to have her!
She has brought her partner to company outings.
Provincetown is the favorite vacation spot of the gay community for a long time. But the whole area has become friendly to those in the LGBTQ community.

I am straight so that does not apply to me besides most of New England most likely has high taxes.Also New England has very few churches of Christ.