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a lot of financial negatives about California dont really apply to anyone Despite the top income tax rate being the highest in the country, if you’re already r

a lot of financial negatives about California dont really apply to anyone Despite the top income tax rate being the highest in the country, if you’re already rich, you can just own US Treasuries and earn around 5% for the next 30 years. US treasuries are not taxed at the state or municipal level anywhere, putting California on par with Texas, Florida and all other 0% income tax states, and all states. On $5,000,000 thats $250,000 a year, on $10,000,000 thats $500,000 a year. Ah but you need the house! Property taxes…. California property taxes are lower than Texas and Florida. so you are left with all the benefits of the weather and varied biome and varied geography that everyone wants to like as the macroeconomic environment changes so do people’s behavior there’s more to write about middle class, which can only be compared to other high cost of living areas, but thats for a different post.

plasticchris 3y ago
The property taxes might be lower on average due to the artificial cap placed on them there, but that doesn't apply if you move there and buy as that resets the calculation.
- yieldcrv 3y ago
  right, yes and then its county dependent. but you can calculate that and come to a result thats still more favorable than the different intricacies that exist in the other two states mentioned
thephyber 3y ago
As someone who lives in California and not interested in moving back to Texas, this analysis is pretty bad. Not factually wrong, just shining the spotlight in the wrong places. If you were going to make a good effort argument, you would start with the largest expenses for an average family/household. Rent / home prices, food, car prices, gas prices, tuition, day care, utilities are all higher in CA than TX. The delta in property taxes is not significant when you consider that rent/property is far better (larger yard, more rooms, newer neighborhoods, etc) for most people in TX. Also, the reason property taxes are lower in CA is because Prop 13 caps their growth rate until the property changes hands. The macro effect of Prop 13 is to create fewer transactions, this artificially reducing sale inventory and thus increasing property purchase prices. Your comparable annual upkeep may be a smaller percentage of the purchase price, but might end up being a larger dollar figure.
- yieldcrv 3y ago
  my post isn't about average, its pretty clearly about people that can afford living in either environment there are headlines about everyone being driven, and headlines about just the rich leaving but for the same reasons the rich can navigate california extremely well on the properties, yes a comparable costing property elsewhere would like be much larger in those other states, while the larger property in california being so much more expensive that the cash outlay for the possibly low % property tax is still higher, I’ll concede that

plasticchris 3y ago

The property taxes might be lower on average due to the artificial cap placed on them there, but that doesn't apply if you move there and buy as that resets the calculation.

yieldcrv 3y ago
right, yes and then its county dependent. but you can calculate that and come to a result thats still more favorable than the different intricacies that exist in the other two states mentioned

thephyber 3y ago

As someone who lives in California and not interested in moving back to Texas, this analysis is pretty bad. Not factually wrong, just shining the spotlight in the wrong places. If you were going to make a good effort argument, you would start with the largest expenses for an average family/household. Rent / home prices, food, car prices, gas prices, tuition, day care, utilities are all higher in CA than TX. The delta in property taxes is not significant when you consider that rent/property is far better (larger yard, more rooms, newer neighborhoods, etc) for most people in TX. Also, the reason property taxes are lower in CA is because Prop 13 caps their growth rate until the property changes hands. The macro effect of Prop 13 is to create fewer transactions, this artificially reducing sale inventory and thus increasing property purchase prices. Your comparable annual upkeep may be a smaller percentage of the purchase price, but might end up being a larger dollar figure.

yieldcrv 3y ago
my post isn't about average, its pretty clearly about people that can afford living in either environment there are headlines about everyone being driven, and headlines about just the rich leaving but for the same reasons the rich can navigate california extremely well on the properties, yes a comparable costing property elsewhere would like be much larger in those other states, while the larger property in california being so much more expensive that the cash outlay for the possibly low % property tax is still higher, I’ll concede that