Quote:
Originally Posted by Jim in CT
"Texas doesn't have a state income tax, but they make it up with "fees" that cover just about everything"
Really. Not according to this ranking of cost of living by state...
Cost of Living by State
Spence, please tell me about these "fees" in Texas, that are the equivalent to an income tax like we have in CT (about 6%).
"States have to get it from somewhere or not offer the services."
Correct. Some states, like CT, offer ridiculous services. As a result, CT attracts people who want welfare instead of wanting a job. At the same time, CT drives out people who want to work. Spence, those low-tax states do offer fewer services, but the services they cut are not missed by many folks. To top it all off, TX has major issues with Mexican immigrants, folks who gobble up services but pay little taxes. Somehow, with such low taxes, TX makes it work. That's why their population is growing. |
It would also be very short-sighted to factor in Texas growth without recognizing the impact the oil industry has had, it really kept Texas afloat during the recession and high prices helped drive growth during the recovery.
It also has a low cost of living as many southern states do which has led people to migrate to Texas resulting in low wages...business loves cheap labor.
Higher population at lower incomes still consume a lot which benefits the state through sales taxes which aren't especially low. Augmenting this are numerous fees (state licenses, fees, permits, fines and penalties) to help offset the state income tax.
Also, from what I've read recently most of the job growth has actually been in education, healthcare and government sectors fueled by 17 Billion in Federal stimulus spending.
So the overall economy has benefited from economic growth, but it's not necessarily healthy organic growth. If other states would adopt the same model they'd end up with more government jobs, depressed wages and a fight to the bottom to attract cheap labor.
-spence