State Taxes and Jobs

[Nashville]

I wonder if any of us have the demographics on a possible correlation between job creation in states that have no income tax versus the other states?

Heard recently that 38% of all jobs created in 2011 are in Texas. Nevada (another state with no income tax) would not have created many but considering its low population may still have a healthy percentage increase.

Job losses over last several years have hit the rust bowl heavily. Some of the northeast states have traditionally very high state income taxes plus nasty state revenue people to deal with.

There are, of course, other factors that tax-and-spend proponents can claim. The great military BRAC program launched under Pres Bush is now in full swing and targeted his home state of Texas as the biggest recipient of military transfer. Certainly the rust-bowl states can cite obvious economic factors (other than taxation) as the reason for their loss of jobs.

The no-tax states are Texas, Washington, Nevada, Wyoming, South Dakota, Florida, Tennessee and New Hampshire. Maybe Alaska - I don't know much of what happens up there. I wonder if there is a website (maybe under Dept of Labor) that outlines job growth in these states versus the other 41 states.

And yes, there are other factors involved in jobs, but it would sure be more than coincidence if these few states all had this common thread in their performance.

[veritas]

When I think of moving

which is often, taxes are number one. I would look for low or no income taxes and reasonable property taxes. Sales tax would be of little concern to me since I won't be buying much.

Second would be climate.

Third would be the availability of good healthcare.

Affordability of housing.

Regulations-restrictions, the fewer the better.

[Uncle]

which is often, taxes are number one. I would look for low or no income taxes and reasonable property taxes. Sales tax would be of little concern to me since I won't be buying much.

Second would be climate.

Third would be the availability of good healthcare.

Affordability of housing.

Regulations-restrictions, the fewer the better.

With the possible exception of healthcare, Somalia would be an excellent fit for you.

[DaveO]

This is strictly anecdotal but I just returned from vacation in the Black Hills and observed help wanted signs posted in many businesses. The economy seemed to be doing just fine there. Of course it’s a tourist area in tourist season.

[Nashville]

Jobs Question

which is often, taxes are number one. I would look for low or no income taxes and reasonable property taxes. Sales tax would be of little concern to me since I won't be buying much. Second would be climate. Third would be the availability of good healthcare. Affordability of housing. Regulations-restrictions, the fewer the better.

Veritas, let's assume you were not moving yourself and family, but instead you were relocating a business that would employ or hire 15 people. What factors would you list?

Last person I talked to about this in Oregon (Umatilla in fact) told me Oregon had one of the highest unemployment rates in the nation. Been a couple years ago and I hope things had improved.

[JON]

The lowest

unemployment rate is the District of Columbia a little over 3%. Also has the largest increase in individual wages in the last 10 years 70% compared to other states, and in the last three months DC is the only metropolitan area of the largest 20 that had home prices go up. Government works really well for those employed by it or contracting with it. Why -in this case they spend until they go broke.

A couple of months ago AOL, I think through Money Magazine or Fortune, had the top five locations for jobs: two of the five were Austin, TX and St. Paul, MN - why the largest emplyer in both cities is STATE government.

1998 I told my nephew to get a government job and in 2002 I tried to convince my daughter to get a government job. I failed at both..

Hand writing is on the WALL. The best current opportunity for jobs is government and that will prevent a lot of other jobs.

[David1980]

Washington, though not subject to an income tax, does have a gross revenues tax on businesses. So that can hurt job creation here, if tax is the only thing considered. Though it's probably lower than what you would pay in income tax in other states (well, depending, since it's based on revenues businesses that generate a lot of revenue but have a lot of expenses to go with that revenue do much worse off as a percentage of income paid compared to businesses that have few expenses.)

I would expect Texas to fare better in a purely tax based job creation system.

[MLINDER42]

Dc

DC has a local income tax.Also parts of DC has high unemployment the area of my office Ward 8 has between 25 and 30% unemployment.

[JON]

How

does that work if DC is a little over 3%. Has a bunch just stopped trying-off the records?? The federal government has been the biggest hire for college grads etal for almost a decade. If you throw in State, County, Local and public education hiring what % do you think that is of the total. Not for profits, bless there hearts, have become a huge employment sector. Things have changed a lot and most of it i do not care for. I am too old to try to change anything I hope it ends up being what DC wants, because the entire country is following their pattern. Except for the deficit, but that may be coing for the States. As far as local taxes for DC it has not stopped the job growth...

Get your government job - your missing out.

[JoshinNC]

SD has the lowest unemployment rate in the USA

This is strictly anecdotal but I just returned from vacation in the Black Hills and observed help wanted signs posted in many businesses. The economy seemed to be doing just fine there. Of course it’s a tourist area in tourist season.

http://www.google.com/publicdata/explore?ds=z1ebjpgk2654c1_&met_y=unemployment_rate&idim=state:ST460000&dl=en&hl=en&q=south+dakota+unemployment+rate

[veritas]

I suspect

With the possible exception of healthcare, Somalia would be an excellent fit for you.

Cuba or North Korea might be more to your liking.

[Nashville]

Back to Basics

I recently heard 30 years ago the largest employer in Minnesota was 3M. Today the largest employer is the State of Minnesota.

Don't know the parallel in Tennessee, but I can promise you I do not enter W-2s from any single employer more frequently than I do the State of Tennessee.

Sickening when you think of who's paying the bill.

Guys who worked in a plant 25 years ago making $20/hr plus health insurance are now working at WalMart for $8/hr. Furthermore WalMart limits their workweek to 25 hrs/wk so they won't have to pay out health insurance on them. By contrast, 25 years ago people working for the state were making $10/hr, but today they are now making $20/hr with fully paid health insurance and a defined benefit retirement plan that is guaranteed to receive COLA raises. My proverbial guy in the plant had a defined contribution plan and lost half of it in the 2008 stock crash.

Like Jon says, don't miss the gravy train. Get on board young people. Too late for grizzled veterans like me.

[veritas]

The economy

Veritas, let's assume you were not moving yourself and family, but instead you were relocating a business that would employ or hire 15 people. What factors would you list?

Last person I talked to about this in Oregon (Umatilla in fact) told me Oregon had one of the highest unemployment rates in the nation. Been a couple years ago and I hope things had improved.

is still suffering. Most likely companies' CEOs have no desire to deal with our 11% income tax and Stalinist land use laws.

There are a couple of bright spots. Energy is much lower than California. Our workers comp rate is very low.

[Lion]

Fl

FL doesn't have an individual income tax but does have business income taxes.

[Black Bart]

Can't find anything on job growth but

stumbled across this -- pretty good chart to check your state's unemployment rate. Ours (AR) is 7.8% now -- usually runs five but started climbing in '08. Alaska's at 7.4% and Florida's is 10.6% -- "no tax" apparently not doing much good (looks like it would though).

http://www.google.com/publicdata/exp...unemployment_r... (click on "unemployment rate", "OK", and then choose your state at left).