6 ms·

If you make $250k in SF (sounds high, but about average for the people I know that are leaving SF), state income tax alone is $19,996. If you make that in Texas

If you make $250k in SF (sounds high, but about average for the people I know that are leaving SF), state income tax alone is $19,996. If you make that in Texas, state income tax is $0. That $20k/year is for many people a bigger deal than the cost of living. Most people I know leaving were home owners or rent controlled. Source: moved to Austin in June.

twalla 6y ago
Property taxes in TX are generally higher but the lower average home price sort of negates that. Regardless, I'm looking forward to competing with even _more_ cash offers over listing price within 24 hours of a listing going up.
- ed25519FUUU 6y ago
  2nd tier cities with affordable living and fiber internet are going to see a huge boon of immigrants. Cities take note and start rolling our fiber as fast as you can.
Tiktaalik 6y ago
lmao at the idea of caring about $20k when you make $250k
- refurb 6y ago
  8% of your income?
- Green_man 6y ago
  8% of income is significant for almost everyone. It could be easy for someone living on a lot less to assume that a marginal 20k doesn't matter to "rich people", but lifestyle inflation and regional cost of living differences should be considered.
  - apexalpha 6y ago
    I'm in Europe and we generally pay between 33% to 50% of our income in tax. So, yeah, i can't really imagine being angry that you're being asked to contribute back to the society. Especially when you make 250k.
    - justchilly 6y ago
      The marginal rate in California for high earners is well over 50%. That 8% you're referring to is just the state income tax portion applied to the entire income. Marginal rate for high earners includes: 37% federal. 13.3% state, plus FICA, social security, local taxes, etc. not to mention employer payroll tax and insurance premiums that are essentially passed on to employees but baked into tax in Europe). Taxes are significantly higher in California than Europe for high earners (like the people leaving SF). There seems to be a major misconception about this even among Americans. Take France for example. Uses a simliar marginal rate system but caps out at 48%. https://taxsummaries.pwc.com/france/individual/taxes-on-personal-income https://taxsummaries.pwc.com/france/individual/taxes-on-pers...
      - pedrosorio 6y ago
        "high earners" - this thread starts with someone asking why people earning $250k would care about $20k in taxes and the person you are replying to is talking about tax/income in Europe, not marginal tax rate - 37% federal requires $510k income (after $12k personal exemption and probably $20k retirement savings) - 13.3% state in California requires $1M income - Social security is included in FICA and does not count towards the marginal rate for high earners (you pay no social security tax on income above $137k) - Local taxes?
        justchilly 6y ago
        The rate is exceptionally high for earners making a fraction of that. Responses in caps. - 37% federal requires $510k income (after $12k personal exemption and probably $20k retirement savings). YES BUT ITS 35% ABOVE $207k - 13.3% state in California requires $1M income. YES BUT IT'S 9.3% ABOVE $57k, and 10.3% ABOVE $295k - Social security is included in FICA and does not count towards the marginal rate for high earners (you pay no social security tax on income above $137k). THERE IS NO CAP ON THE EMPLOYEE PORTION MEDICARE TAX. PLUS NOT ALL OF THEM ARE IN FICA. THERE ARE BOTH FEDERAL (IN FICA) AND STATE INSURANCE TAXES IN CALIFORNIA FOR EXAMPLE. - Local taxes? SF HAS A PAYROLL TAX OF 1.5% FOR EXAMPLE.
- che_shirecat 6y ago
  what if I'm trying to save 75% of my income? $20k is very significant when I'm working with 62.5k a year.
  - Tiktaalik 6y ago
    Don’t really see what the purpose of the money is. You could be spending 75% on hookers and blow and it doesn’t change things. The point is that your basic needs are well being exceeded at even like 80k, at which point you’re already in the top 5-10%. It’s obnoxious and greedy to be concerned about such low amounts of money when you’re making $250k, in the top 1% and have so many more opportunities than other people.
    - logicchains 6y ago
      >It’s obnoxious and greedy to be concerned about such low amounts of money It's obnoxious and a greedy for you to feel like you have some right to say what somebody else should do with their hard-earned money.
      - Tiktaalik 6y ago
        Do you oppose progressive taxes as well? It's a simple problem of who has the strongest ability to contribute to pay for the things we all need to keep our society growing. Bitching and moaning about having to pay $20k when you have 250k and are in the top 1% of wealth in society is unseemly.
        Tiktaalik 6y ago
        $20k is about what someone on minimum wage makes in an entire year hope this helps!
- justchilly 6y ago
  It's expensive being well off. If you make $250k a year, you take home $159k in SF. A big chunk of that goes to cost of living such that the $20k means one of your two kids can't go to the college they want because it's $50k per year, and you don't qualify for financial aid.
  - derwiki 6y ago
    Unless I’m mistaken, there are colleges that are less than 50k/year.
    - daniel-cussen 6y ago
      And others that aren't, that's the point. That kid can't go to his college of choice because it's expensive, not that he can't go to any college at all.
  - veggieburglar 6y ago
    It’s much, much more expensive to be poor. Reread this comment and find why most of “regular” America hates the coasts and tech elites.
- ulfw 6y ago
  You DO realise that's not the only taxes paid, right???
seanmcdirmid 6y ago
$20k/year to live in Austin, I think my AC bill would eat all that up. But there are other places that don’t have state income tax, like Seattle.
- mcphilip 6y ago
  I assume you’re being sarcastic but I’ll give a datapoint anyways. Small home in Austin, ~1400 square feet, costs a little over $200/month in the summer and I keep it a nice cool 71 degrees 24/7. Low to mid $100s the rest of the year. I don’t have any notable shade coverage, either.
  - seanmcdirmid 6y ago
    It was tongue in cheek. I lived in Austin for only one hot summer, and my dash board melted. Not a bad place otherwise.

twalla 6y ago

Property taxes in TX are generally higher but the lower average home price sort of negates that. Regardless, I'm looking forward to competing with even _more_ cash offers over listing price within 24 hours of a listing going up.

ed25519FUUU 6y ago
2nd tier cities with affordable living and fiber internet are going to see a huge boon of immigrants. Cities take note and start rolling our fiber as fast as you can.

Tiktaalik 6y ago

lmao at the idea of caring about $20k when you make $250k

refurb 6y ago
8% of your income?
Green_man 6y ago
8% of income is significant for almost everyone. It could be easy for someone living on a lot less to assume that a marginal 20k doesn't matter to "rich people", but lifestyle inflation and regional cost of living differences should be considered.
- apexalpha 6y ago
  I'm in Europe and we generally pay between 33% to 50% of our income in tax. So, yeah, i can't really imagine being angry that you're being asked to contribute back to the society. Especially when you make 250k.
  - justchilly 6y ago
    The marginal rate in California for high earners is well over 50%. That 8% you're referring to is just the state income tax portion applied to the entire income. Marginal rate for high earners includes: 37% federal. 13.3% state, plus FICA, social security, local taxes, etc. not to mention employer payroll tax and insurance premiums that are essentially passed on to employees but baked into tax in Europe). Taxes are significantly higher in California than Europe for high earners (like the people leaving SF). There seems to be a major misconception about this even among Americans. Take France for example. Uses a simliar marginal rate system but caps out at 48%. https://taxsummaries.pwc.com/france/individual/taxes-on-personal-income https://taxsummaries.pwc.com/france/individual/taxes-on-pers...
    - pedrosorio 6y ago
      "high earners" - this thread starts with someone asking why people earning $250k would care about $20k in taxes and the person you are replying to is talking about tax/income in Europe, not marginal tax rate - 37% federal requires $510k income (after $12k personal exemption and probably $20k retirement savings) - 13.3% state in California requires $1M income - Social security is included in FICA and does not count towards the marginal rate for high earners (you pay no social security tax on income above $137k) - Local taxes?
      - justchilly 6y ago
        The rate is exceptionally high for earners making a fraction of that. Responses in caps. - 37% federal requires $510k income (after $12k personal exemption and probably $20k retirement savings). YES BUT ITS 35% ABOVE $207k - 13.3% state in California requires $1M income. YES BUT IT'S 9.3% ABOVE $57k, and 10.3% ABOVE $295k - Social security is included in FICA and does not count towards the marginal rate for high earners (you pay no social security tax on income above $137k). THERE IS NO CAP ON THE EMPLOYEE PORTION MEDICARE TAX. PLUS NOT ALL OF THEM ARE IN FICA. THERE ARE BOTH FEDERAL (IN FICA) AND STATE INSURANCE TAXES IN CALIFORNIA FOR EXAMPLE. - Local taxes? SF HAS A PAYROLL TAX OF 1.5% FOR EXAMPLE.
che_shirecat 6y ago
what if I'm trying to save 75% of my income? $20k is very significant when I'm working with 62.5k a year.
- Tiktaalik 6y ago
  Don’t really see what the purpose of the money is. You could be spending 75% on hookers and blow and it doesn’t change things. The point is that your basic needs are well being exceeded at even like 80k, at which point you’re already in the top 5-10%. It’s obnoxious and greedy to be concerned about such low amounts of money when you’re making $250k, in the top 1% and have so many more opportunities than other people.
  - logicchains 6y ago
    >It’s obnoxious and greedy to be concerned about such low amounts of money It's obnoxious and a greedy for you to feel like you have some right to say what somebody else should do with their hard-earned money.
    - Tiktaalik 6y ago
      Do you oppose progressive taxes as well? It's a simple problem of who has the strongest ability to contribute to pay for the things we all need to keep our society growing. Bitching and moaning about having to pay $20k when you have 250k and are in the top 1% of wealth in society is unseemly.
      - Tiktaalik 6y ago
        $20k is about what someone on minimum wage makes in an entire year hope this helps!
justchilly 6y ago
It's expensive being well off. If you make $250k a year, you take home $159k in SF. A big chunk of that goes to cost of living such that the $20k means one of your two kids can't go to the college they want because it's $50k per year, and you don't qualify for financial aid.
- derwiki 6y ago
  Unless I’m mistaken, there are colleges that are less than 50k/year.
  - daniel-cussen 6y ago
    And others that aren't, that's the point. That kid can't go to his college of choice because it's expensive, not that he can't go to any college at all.
- veggieburglar 6y ago
  It’s much, much more expensive to be poor. Reread this comment and find why most of “regular” America hates the coasts and tech elites.
ulfw 6y ago
You DO realise that's not the only taxes paid, right???

seanmcdirmid 6y ago

$20k/year to live in Austin, I think my AC bill would eat all that up. But there are other places that don’t have state income tax, like Seattle.

mcphilip 6y ago
I assume you’re being sarcastic but I’ll give a datapoint anyways. Small home in Austin, ~1400 square feet, costs a little over $200/month in the summer and I keep it a nice cool 71 degrees 24/7. Low to mid $100s the rest of the year. I don’t have any notable shade coverage, either.
- seanmcdirmid 6y ago
  It was tongue in cheek. I lived in Austin for only one hot summer, and my dash board melted. Not a bad place otherwise.