Am I Crazy for Considering Moving to Los Angeles

[codewritinfool]

https://www.forbes.com/sites/robertwood/2019/12/03/leave-california-keep-paying-california-taxesreally

 

[CECAA850]

1 hour ago, codewritinfool said:

https://www.forbes.com/sites/robertwood/2019/12/03/leave-california-keep-paying-california-taxesreally

 

That's insane (to me) but par for the course in CA.  I wish @Ceptorman ALL the best and prosperity, but no way in hell I'd ever move there.   I'm sure there's more "gotchas" that he won't find out about until it's too late.  His new employer certainly isn't going to tell him about them.What's the old saying?  If something seems too good to be true it probably is.

 

[Ceptorman]

Yea I knew there could be some wild tax situations, and others in Cali say it's not nearly as bad as you hear. 

[oldtimer]

2 hours ago, codewritinfool said:

https://www.forbes.com/sites/robertwood/2019/12/03/leave-california-keep-paying-california-taxesreally

 

"In some cases."  I know from a personal account that New Mexico tries the same thing, and this was for a job making far less than 200g.  It's apparently not unique regarding states with an income tax.  The article mentions states such as Texas, which have no income tax, but the state makes up for it in other ways.  Higher property taxes, and sales taxes, for example.  But if you move, the state at least can't try to chase you down for income taxes.

[Ceptorman]

2 hours ago, CECAA850 said:

There's another area there where it shows take home pay and yes, you're losing about 50% of what you make.

Total tax is around 34% based on what I'm expecting to make, slightly higher than where I am now. 

[NADman]

and others in Cali say it's not nearly as bad as you hear. 

 

 

"I've heard many, many people say--"  

 

Where have i heard that before?

[Jeff Matthews]

About 4 or 5 years ago, I met some Californians at Zion National Park.  They were in the cabinet business.  They said they were so sick of the regulatory bureaucracy, taxes and fees that they were really wishing they could find a way out of there.  Once it's "home" to you, I can see the emotional plight of being stuck.  How do you just "up and leave" when you've been in business 20 years?

[oldtimer]

8 minutes ago, Jeff Matthews said:

About 4 or 5 years ago, I met some Californians at Zion National Park.  They were in the cabinet business.  They said they were so sick of the regulatory bureaucracy, taxes and fees that they were really wishing they could find a way out of there.  Once it's "home" to you, I can see the emotional plight of being stuck.  How do you just "up and leave" when you've been in business 20 years?

It's easy.  Get a contract from a prominent expert in running firms into bankruptcy.  Once you are left with nothing, you may as well move.

[Dave A]

6 hours ago, CECAA850 said:

Have you looked into income TAX?

You mean City, County and State tax + one of the highest gas taxes in USA? Pffft!

 

  There is this though. The enviro whackos who forbid logging and cleaning forests up to prevent uncontrollable forest fires have succeeded in preserving wildlife and habitat beyond their wildest dreams. The smoke you see is all natural so it is healthy for you too unlike man made pollutants.

[oldtimer]

Just now, Dave A said:

You mean City, County and State tax + one of the highest gas taxes in USA? Pffft!

 

  There is this though. The enviro whackos who forbid logging and cleaning forests up to prevent uncontrollable forest fires have succeeded in preserving wildlife and habitat beyond their wildest dreams. The smoke you see is all natural so it is healthy for you too unlike man made pollutants.

You can't fix stupid, as we often quote here.  The oldtimer corollary is that is even more stupid to try.

[Dave A]

1 minute ago, oldtimer said:

You can't fix stupid, as we often quote here.  The oldtimer corollary is that is even more stupid to try.

I think it is being fixed right now. Won't be much to burn soon but yes I am certain the lesson will be oblivious to many.

[Dave A]

Here is an aside to all this. Working in a bakery yesterday and the roving baking expert who came in to help my friend now lives in western Nevada until his Daughter graduates from UC later this year. He says tons of refugees have moved just across the border and have installed the same class of governing types that ruined where they used to live so the doom count down clock is ticking. He went on to say none of them look you in the eye and all have surly attitudes and none say hello just to acknowledge that another human is nearby. His comment was that they were the largest collective group of unhappy people he had ever seen.

[Dave A]

2 hours ago, CECAA850 said:

That's insane (to me) but par for the course in CA.  I wish @Ceptorman ALL the best and prosperity, but no way in hell I'd ever move there.   I'm sure there's more "gotchas" that he won't find out about until it's too late.  His new employer certainly isn't going to tell him about them.What's the old saying?  If something seems too good to be true it probably is.

 

Hmmm, do you suppose talented people are leaving and they have to go out of state to find good people? Wonder why that is?

[oldtimer]

6 minutes ago, Dave A said:

He went on to say none of them look you in the eye and all have surly attitudes and none say hello just to acknowledge that another human is nearby.

Wow!  That sounds like Miami.

[Dave A]

5 hours ago, Ceptorman said:

Excellent point. I have considered what my best option is. He can pay me either with a W-2, or a 1099. I'll still keep my business in Indiana going, insurance also, so I can be considered a contractor. I need to talk to a tax attorney that knows Indiana and California laws. I've heard of people living in Cal for a few years and keep their vehicle registered in their own state, and just pat Cal income tax. Certainly do not want to do anything illegal, but I want to keep any unnecessary costs down. I've also heard that Cal can try to tax you after you move away, if you're a Cal resident, like a departure tax (maybe someone that's heard of this can chime in) 

 

There's so much to consider....it's almost frightening!

Do you get to then add Indiana state/business income tax to it all? Also I think you have to become a resident whether you want to or not if you stay there too long earning money. Seems to me I remember people having to leave periodically to avoid having to become residents. You better figure all these things out before you get a big can of CA tax whoopa--  opened up on you.

[Dave A]

7 minutes ago, oldtimer said:

Wow!  That sounds like Miami.

Now that you mention it, yes it sure does.

[Jeff Matthews]

6 minutes ago, oldtimer said:

14 minutes ago, Dave A said:

He went on to say none of them look you in the eye and all have surly attitudes and none say hello just to acknowledge that another human is nearby.

Wow!  That sounds like Miami.

And all the disenchanted CA residents are moving to Texas and bringing their same habits here.  It's ironic how they run from the thing they created and then spread it to their new homes.

 

[Dave A]

1 minute ago, Jeff Matthews said:

And all the disenchanted CA residents are moving to Texas and bringing their same habits here.  It's ironic how they run from the thing they created and then spread it to their new homes.

 

Yes and when you talk to these refugees they are completely oblivious to that fact.

[Jeff Matthews]

1 minute ago, Dave A said:

Yes and when you talk to these refugees they are completely oblivious to that fact.

When they start a new life, they need to change everything, including their political philosophy.

[garyrc]

• The median income in California is about $64,000 before taxes.  By definition, of course, half of the people are making less than that.    The mean income is about $92,000, clearly showing why the mean is a poor measure of central tendency when there is a very wide range.
• We moved out of California (mainly due to traffic and crime, not finances), and landed in a state that had slightly lower income tax, slightly higher property tax on a percentage basis, but marvelously lower property tax in dollars, because the houses are much less valuable.  The rule of thumb when we moved was you could expect a house twice as large at one half the price.  We have no sales tax, while California cities have about 9% or 10% sales tax, depending on where you live (varies by city/county).
• Only the wealthy in California have a total tax of 50%, although I've heard that figure bandied about.  I have had only a nodding acquaintance with two such individuals in my ~~ 55 years in California.  The wealthiest person I knew well in California paid about 38% total taxes, I think.
• My family knew a Californian -- I'm pretty sure he was a Republican -- who said he was proud of paying high taxes, because that served as an indicator of high achievement financially -- it was sort of a badge of honor to him, and he said it was the price of living in a decent society.  He, indeed, was a high achiever, and sought challenges.  He once walked from Oakland to Yosemite, possibly on the John Muir Ramble Route, and returned with a few missing toenails.