Taxes? States to Avoid

If you are considering moving to another state, there are two things that you might want to consider before deciding on where to call your new home.

One of the key factors I would hope you consider is how the state’s government feels about the Second Amendment.  I would definitely think twice about moving to a state that has passed anti-Second Amendment legislation.  Colorado, New York, Maryland, Connecticut and Illinois are states that I would hesitate to move to because of their anti-gun laws.

Another factor you may want to consider are the taxes as different states have different tax rates.  The Tax Foundation has rated the states using the Tax Freedom Day system of rating.  They combine federal, state and local taxes in any given area and then calculate how many days you have to work just to pay all of those taxes.  The next calendar day is tax freedom day, the first day that you actually start working for yourself and not the government.

When you take the entire nation as a whole, tax freedom day works out to be April 18, however a number of states push that date later in the year.  According to the Tax Foundation, here are the 7 worst states to live in based on taxes:

7.  Minnesota – Tax freedom day is April 23.  The state income tax rate is 7.85% and the state sales tax is 6.875%.  They also have a high corporate tax rate of 9.8%.

6.  California – Tax freedom day is April 24.  The state income tax rate for higher income earners is 13.3% and the state sales tax is 7.5%.  The state has some restrictions on increasing property taxes which does help many residents from having t pay outrageous property taxes.

4 (tie).  Massachusetts – Tax freedom day is April 25.  State income tax is a low flat rate of only 5.25% and their state sales tax is only 6.25%.  However, they have high property taxes that average out at over $2,000 per year.

4 (tie).  Illinois – Tax freedom day is April 25.  State income tax is a low flat rate of 5.25% and sales tax is 6.25%.  They have one of the highest gasoline taxes along with higher than average corporate taxes.

3.  New Jersey – Tax freedom day is May 4.  State income tax rate is nearly 9% and sales tax is 7%.  Property taxes average $2,800 and their corporate tax rates are among the highest in the nation.

2.  New York – Tax freedom day is May 6.  State income tax rate is 8.8% but the state sales tax is only 4%.  Many cities in the state collect up to 4.5% additional sales tax.  New York also has high corporate tax rates.

1.  Connecticut – Tax freedom day is May 13.  State income tax rate is 6.7% and state sales tax runs 6.35%.  Property taxes average around $2,500.  The state also has high gasoline taxes.  The state has a high average income, largely attributed to its proximity to New York City and the large number of insurance and defense-related companies.  All this combines makes Connecticut the most expensive state to live in.

Note that six of the seven states have Democratic governors.  The only one that doesn’t is New Jersey, whose Governor Chris Christie has a number of very liberal views and has been referred to as a Democrat in Republican clothes by some including myself.  Also note that most of these states are also the ones that have enacted some of the strictest anti-gun laws in the nation.

When you add it all up – strict anti-gun laws = strike 1; highest tax rates in nation = strike 2 and liberal governors = strike 3.  Being the baseball fan I am, I see that equating to an obvious OUT, means that there is no way I would ever consider moving to any of these states.