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The median US household income is something like $50k/year. Probably lower in Michigan, but we'll call it $50k. Michigan has a 4.25% income tax, so eliminating
by elmuchoprez 14y ago
The median US household income is something like $50k/year. Probably lower in Michigan, but we'll call it $50k. Michigan has a 4.25% income tax, so eliminating that would be a savings of $2,125. But you have to pay federal tax on that. Let's just say you're paying 15%. So now we're talking a savings of about $1,800. $1,800/year isn't chump change, but it's also not a life altering amount of money. For me personally, it's nowhere near enough money to put up with all the negatives that come with Detroit.
- mgkimsal 14y agoPeople that earn more would save more, and would have more incentive to move there, especially if you can get larger tracts of land to have a bit of privacy. Yes there are negatives, but the solutions are going to need to come from getting larger numbers of working/earning people living there day in and day out. Adding another casino or ballpark will do pretty much 0 for Detroit as a whole - it'll make the few square miles in downtown prettier, but people will just continue to drive in and out, nothing more. People jumped through hoops a few years back to 'save' a few thousand for the 'new home buyer tax credit', which basically landed them with a mortgage. And that was a one time event. A family saving $2k+/year for, say 10 years, would be, if not life altering, certainly a modest incentive. Individuals making a decision like this won't be enough - it needs to be large groups who have enough purchasing power to attract other businesses/jobs to Detroit as a whole.