Careful If You Relocate – State Budget Shortfalls Mean Higher State Taxes
41 states could go bankrupt by 2009-2010 – the table below shows which are the worst.
As state governments scramble to stay above water – cutting both unneeded and needed services – the local legislatures grapple with ways to increase revenue.
And you know what that means. More taxes for all of us.
No more wondering what I’ll be doing with that $600 federal tax rebate check.
What the federal government giveth, the state government taketh away.
I don’t quite understand why every bank and their grandmother’s bank is getting TARP funds – while the states are left holding the bag.
More than 10 states are considering major tax increases, reports the Wall Street Journal. These include “Arizona, Connecticut, Delaware, Illinois, Massachusetts, Minnesota, New Jersey, Oregon, Washington and Wisconsin. California and New York lawmakers already have agreed on multibillion-dollar tax increases that went into effect earlier this year.”
State taxes come in many forms beyond income tax. Depending on where you live, and what your vices are, you could be nickled and dimed out quite a few dollars. Here’s some of the taxes being considered for increases in various states.
Cost of living taxes
- Sales tax
- Fuel tax
- Property taxes
- Personal taxes, such as excise tax, and fees for registering your car or boat.
- Reductions of personal exemptions and standard deductions, medical/dental exemptions, and federal income tax deductions.
- Retirement taxes
- Military retirement taxes
- Estate Taxes
- Cigarette tax
- Alcohol tax
- Gambling tax
In addition to these taxes, if you’re gay/lesbian and married to your partner, you’ll want to pay close attention to how state laws see your marriage. If they don’t recognize it, depending upon your current situation, you may need to see a lawyer and have your wills rewritten. You’ll want to be totally protected financially should something happen to either one of you.
What you can do
- Contact your local legislature, or the legislature of the state you’re considering moving to, and let them know how you feel. Here’s how.
- Reduce or quit a vice. Bummer.
- If you’re considering relocating either for job or retirement, you’ll want to take into account the tax burden you’ll be expected to handle at the new location. Is it higher or lower than where you live now? Here’s a list of per capita tax burdens by state:
Has anyone out there recently relocated? Are you thinking about it? Would love to hear your experiences.
photo credits: PicApp