4 ms·

Can we talk about the fact that people are paying 10% of their income to live in this dirty crime ridden city? I don't think people comprehend how much money th

Can we talk about the fact that people are paying 10% of their income to live in this dirty crime ridden city? I don't think people comprehend how much money they are spending. If you manage to keep your salary (which some people are able to do), moving out of California to a no tax state means you instantly get a 22% raise. Meaning for every 5 years you will earn the equivalent of 1 extra year of salary, factor in compound interest from investments and it's significantly more in reality. Going back to the 22% raise number. Why 22% if California income tax is 10%? The 10% income tax takes away after-tax money. So to earn that 10% back you need to make the equivalent of 122% your income in California. It's just absurd. Either move to a part of California that makes the income tax worth it or get out of the state. San Francisco's weather is not worth 4 years of your life (assuming you work there for 20 years, it's 8 working years if you factor in returns from investments on the money you are saving.)

onlyrealcuzzo 4y ago
Your tax math is wrong. Assume you make $100k, and your effective federal income tax rate is 25%. You make $75k after federal taxes and no state taxes in somewhere like Florida or Texas. In CA - if you assume 10% state income tax - you make $65k. You have 15% more disposable income in FL or TX. You need to earn 15% more in CA to have the same disposable income. The average worker in SF is getting paid 10%+ more than the average worker in FL or TX. If you factor in SALT, CA's low property tax, prop 13, and the mortgage interest deduction - you're way better off owning a home in CA financially. And if you rent - the average person isn't meaningfully that much worse off that they're going to leave their friends & family & community for a <5% tax arbitrage. If you want to, no one is stopping you.
- tested23 4y ago
  Calculate how much more you need to earn in CA to make $75k. Im assuming higher federal taxes than you are. Half of Sf is transplants, they arent living close to family > The average worker in SF is getting paid 10%+ more than the average worker in FL or TX 10pct more is not enough to cover the difference. Also if you are good you can make sf salary anywhere in places where the cost of food is a third of the price
  - vlovich123 4y ago
    All employers that I’ve seen adjust your salary down to wherever you end up living.
  - onlyrealcuzzo 4y ago
    > Calculate how much more you need to earn in CA to make $75k. I did. It's 15%. You ignored it. > Also if you are good you can make sf salary anywhere in places where the cost of food is a third of the price. If you are skilled in The Bay - you can easily make $500k+ per year. Saving $700 per month on food would not be a consideration for almost anyone at that income. At the $500k+ budget - almost all companies are paying 10-15% less if you move elsewhere - at which point - financially alone - it rarely make sense to leave.
deleted 4y ago
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onlyrealcuzzo 4y ago

Your tax math is wrong. Assume you make $100k, and your effective federal income tax rate is 25%. You make $75k after federal taxes and no state taxes in somewhere like Florida or Texas. In CA - if you assume 10% state income tax - you make $65k. You have 15% more disposable income in FL or TX. You need to earn 15% more in CA to have the same disposable income. The average worker in SF is getting paid 10%+ more than the average worker in FL or TX. If you factor in SALT, CA's low property tax, prop 13, and the mortgage interest deduction - you're way better off owning a home in CA financially. And if you rent - the average person isn't meaningfully that much worse off that they're going to leave their friends & family & community for a <5% tax arbitrage. If you want to, no one is stopping you.

tested23 4y ago
Calculate how much more you need to earn in CA to make $75k. Im assuming higher federal taxes than you are. Half of Sf is transplants, they arent living close to family > The average worker in SF is getting paid 10%+ more than the average worker in FL or TX 10pct more is not enough to cover the difference. Also if you are good you can make sf salary anywhere in places where the cost of food is a third of the price
- vlovich123 4y ago
  All employers that I’ve seen adjust your salary down to wherever you end up living.
- onlyrealcuzzo 4y ago
  > Calculate how much more you need to earn in CA to make $75k. I did. It's 15%. You ignored it. > Also if you are good you can make sf salary anywhere in places where the cost of food is a third of the price. If you are skilled in The Bay - you can easily make $500k+ per year. Saving $700 per month on food would not be a consideration for almost anyone at that income. At the $500k+ budget - almost all companies are paying 10-15% less if you move elsewhere - at which point - financially alone - it rarely make sense to leave.

deleted 4y ago

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