If you live in Hawaii, California, or New York, your state is costing you a lot of money. According to the Tax Foundation, in those states respectively, $100 will only buy you 84%, 86% and 87% of what you can get in an average cost of living state. Meanwhile, if you live in Mississippi, Arkansas, or Alabama, your dollar will last you much longer, with a buying power of 117%, 116% and 115% of average in those states respectively. If you're retired and living on a fixed income, the boost in purchasing power could make a major difference in your standard of living. Analysts from the Tax … [Read more...]

Residents of New England and nearby New York and New Jersey endure some of the nation's highest tax rates (not New Hampshire). With the capping of the State and Local Tax (SALT) deduction on federal taxes, the bad behavior of these states was revealed to everyone. You may think that the federal government and those who want to "tax the rich," are the real winners of the SALT cap, but that doesn't appear to be the case. The tax the rich crowd isn't so keen on taxing the rich when that means themselves. And the federal government is giving away far more in revenue than it's getting with the … [Read more...]

If you answered Palm Beach County in Florida, you're right. When tax reform capped state and local tax deduction from federal returns, financial firms and their employees were exposed to the naked truth about the high state taxation in the Northeast. With governments in New York, Massachusetts, and Connecticut drowning in obligations, taxes aren't coming down soon. That's why so many financial firms and employees are voting with their feet and heading for low tax Florida instead. Many wealthy retirees have already made this sound financial choice, and it's no surprise to see profit-making … [Read more...]

Despite being surrounded by the two states ranked by Moody's as having the worst debt service to state revenue ratios in the country, Rhode Island managed to come in 18th highest. Connecticut was worst, and Massachusetts just behind in second place. Is there a lot of work to be done in Rhode Island? Absolutely, but in New England, 18th worst is cause for celebration where debt is concerned. Rhod Island certainly has its weak points. Woonsocket is much deeper in debt than the State's Public Finance Management Board recommends. The Newport Daily News reports: “At the state level, the debt of … [Read more...]

Chicago-area politicians have given their constituents something special this year, a major property tax increase. In a state already near the top for income taxes, residents of Chicago and Cook County are facing property tax bills that have skyrocketed. In the face of property tax bills that have even climbed by 60%, some residents are being forced by the bills to move out of the area. Dana Kozlov reports for CBS: Property tax increases in Cook County are going beyond sticker shock. For some families it’s life-changing, and they say they will have no choice but to move. “This is out of … [Read more...]

In a great piece in The Wall Street Journal, Glenn Ruffenach answers a question by a retiree who is looking to move. She wants a safe neighborhood, and Ruffenach explains that while most retirees looking to relocate are focused on the fun aspects of life like "climate, lifestyles, housing, shopping, cultural events," they should also be paying attention to things like "taxes, health care—and crime." Face it, if you're scared, sick or broke, it doesn't matter how many restaurants or shows are on Main Street, your retirement isn't going to be any fun at all. Ruffenach continues: Beyond the … [Read more...]

Despite what seem to be ever increasing taxes, Connecticut's politicians can't seem to pay for all their spending. Every time taxes go up, more of the state's wealthy residents decide it's time to pick up and leave. Now, Connecticut is trying to adapt. Rather than raising headline rates on income or sales, Hartford's Regents of Revenue are creating a slew of new taxes on the edges of noticeability. The Middletown Press explains this new assault on Nutmeggers, writing: The sales tax on digital downloads — things like e-books and movies downloaded from Amazon — will increase from 1 percent … [Read more...]