state income tax

Originally posted by Traden4Alpha
What I HATE HATE HATE HATE:mad: about tax issues is that NOBODY knows the answer to so many questions, not even the IRS --
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Traden4 - I'm guessing you know this, but in case you don't, any taxpayer can request an opinion letter from the IRS on how to treat a particular issue. There are certain legal safe-harbor-type effects to relying on an opinion letter, but the precise legal ramifications are beyond my knowledge.

btw, if you think individual taxation is complicated, you should check out federal corporate, and worse, partnership taxation -- partnership tax is unbelievably complicated. A tax professor I know that had been a Congressional staff member, and had actually worked on the code, admitted that there are parts of subchapter K he can't understand, lol. The upside is that according to him, the partnership audit rate is very low mostly because there are so few IRS auditors that actually understand it themselves...

my personal opinion on the flat tax is that we'll never see one because if you collected all the provisions into a single number, and that number accounted for the huge progressivity in the current system, the overall effective rate would be astronomical - much higher than projections I've heard.

As for complexity, a great deal of the success of the code is that the ordinary person can't understand the law, even if they tried (they actually have to pay other people to help them pay the government!). Many see it as a black box calculation that they don't have enough time or desire to understand - it's easier to pay it and avoid the horror of an audit. The complexity, bureaucracy, and resulting fear assist in compliance - if you make it easy to understand, you also make it easier to object to.
 
great thread,

I'm in Arkansas and paid over 5k in state taxes this quarter

we have 6% state sales tax and then each county (all but one county) tacks on another few percent in sales tax to make it 8 or 9%

cost of living list usually show Arkansas, Missouri, Oklahoma and Mississippi to be the lowest cost of living but I don't know if they take into account everything

Looks like the following states have no income tax and are worth considering

Florida - 6% sales tax
Alaska - no sales tax
Nevada - 6.5% sales tax
South Dakota - 4% sales tax
Texas - 6.25% sales tax
Washington - 6.50% sales tax
Wyoming - 4% sales tax

This article favors Texas http://planning.yahoo.com/living2.html

Did you know that last year 32.4% of all US filers paid no federal income tax. Yip it's true and that number has increased sharply the last ten years according to http://www.taxfoundation.org/publications/show/542.html

As governments look for ways to increase revenues, sooner or later we will see a cashless society where there is no hard currency. There will still be dollars, but only on computer databases.

This will create an incredible amount of additional revenue from professions that don't have to report all earnings.
 
FELIX

take a look to Cape Coral in south florida (WEST)
good beach, no state income taxes, clean
and quite, good schools and very good houses
Very very low crime rate (almost 0%)

If You have a Boat the marina will cost you
like 80-100 bucks a month (in miami is like 400 a month)

is a great place to live If you have family
But if you're single and want some good action
forget about it.

http://www.capecoralchamber.com/
 
Even though Florida doesn't have income taxes, doesn't it have an asset tax which is worse for traders ?

For example, if you broke even for the year on your trading, you will still have to pay asset tax on your trading account.
 
In florida
Taxes are Calculated like this

Individual Filers, The first $250,000 of total taxable assets are exempt. Assets above $250,000 are taxed at $1 per thousand dollars of value.

Joint Filers, The first $500,000 of total taxable assets are exempt. Assets above $500,000 are taxed at $1 per thousand dollars of value.

Corporations, Partnerships and Estates - The first $250,000 of total taxable assets are exempt. Assets above $250,000 are taxed at $1 per thousand dollars of value.

The most common types of taxable assets are
Stocks
Shares or units of a mutual fund, including money market funds
Ownership interest in a limited liability company
Interest in limited partnerships registered with the Securities and Exchange Commission
Bonds
Loans
Notes
Accounts receivable not arising from your normal course of trade or busi

PD: Assets exempt from federal income tax are not necessarily exempt from Florida's intangible tax.

What is Exempt?????
well intangible property held in an individual retirement account (IRA) qualified under section 408 (IRA), s. 408a (Roth IRA), and s. 530 (Educational IRA), U.S.I.R.C., as amended.
All intangible property held in a deferred compensation plan offered to government employees and is qualified under section 457, U.S.I.R.C., as amended.
Interest in a limited partnership not registered with the Securities and Exchange Commission.
Interest in a general partnership.
Franchises.
Notes and other obligations for payment, except bonds, to the extent secured by liens on real property located inside or outside the state.
Accounts receivable that arise from, or are issued in connection with, a business' normal trade or business activity.
A trust contributing 95 percent of its income to a federally exempt organization under section 501(c)3, I.R.C., as amended.

and Companies registered under the Investment Company Act of 1940, s.80, a. 1052, are exempt from the intangible tax on the intangible property they own. This exemption does not include the shares or units issued by such funds.
 
Quote from graeco:

Why would a trader want to live in Wyoming or Alaska?Low taxes?Excellent broadband connections?Really nice winters?
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Juneau actually doesn't get any colder in the winter than Chicago or Boston. And in Alaska, you get REVERSE taxes, i.e. the state pays you something like $1600 per year from oil revenues.

The real downsides to living there are 1) high prices and 2) lack of transportation to other states (it is the only state capital you can't reach by road). Great if you want to live in a small town near natural beauty, hunting, fishing, etc.

The only other city with good broadband in Alaska is Anchorage, which is indeed cold as hell.

If you want a low-tax city with really kick-ass winters, Sioux Falls would be a good choice.
 
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