EV Tax credit and Tax Software.

Discussion in 'Cooper SE' started by ColdCase, Jan 24, 2022.

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  1. AndysComputer

    AndysComputer Well-Known Member

    Whether you end up with more money in your pocket in a state with zero income tax be other higher taxes depends how you live your life. Simply put zero income tax states are taxing you on your consumption (whether that is a larger house, purchasing more stuff etc), keep your consumption down and you gain. However the point may be moot if your income is relatively low. The taxes you pay in the consumption you need to do to live may outweigh the income tax you save on a relatively low income.
    If you earn above average pay but live modestly then you can gain by moving to a consumption tax based state. If you don’t live modestly you won’t.
    It’s my view that zero income tax states benefit the wealthy. The more you earn the more save in taxes. For it to work for us we live modestly, but if we were making big money in income then we could live it up in a large house and own a boat etc and still be better off here vs a state with income tax.
    Which is best for an individual and whether there are savings to be had depends on your personal income and lifestyle situation. There is no blanket “best”.
     
    Matt007b likes this.
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  3. ColdCase

    ColdCase Active Member

    So you are saying that states without both income and consumption taxes would benefit both the poor and wealthy? hmmm... now thats a novel idea ;)
     
  4. AndysComputer

    AndysComputer Well-Known Member

    Haha!
     

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