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Originally Posted by iahflyr
(Post 2509145)
I live in CA and made roughly 200k last year. Subtract my deductions for owning a house and I paid ~$11k in CA state income tax. CA effective tax rate is not as high as you think, especially if you have deductions. Subtract 28% of that as a write-off on my federal taxes (~$3k), and it only really cost me ~$8k in income tax for living in CA.
I get that 8k is still a lot of money, but it is WAY easier than owning two houses (one in CA and one in Reno/Tahoe), commuting between the two cities, risking a massive fine/jail time for evading taxes if you really spend more of your time in CA, etc.... When I talk to other pilots who do this, I have to remind them how much easier/simpler/potentially even cheaper it is to actually just live in CA versus trying to evade. Personally I think the ~8k that I pay is a small price to pay for the great weather, beaches, things to do, sunshine, and everything else great about living in CA, but YMMV. |
Originally Posted by Levigarrett
(Post 2509669)
I moved to the Bay Area in 2014 after 14 yrs of commuting. I'm leaving in April. I'd rather commute again than stay here. Between the traffic, housing costs and exceedingly high cost of living it's not worth it to me. I can't wait to leave.
I'm single w/ no kids and I'm not willing to pay these taxes for the next 22 yrs of my working life. The Bay Area is crowded, very crowded and extremely expensive. My 2 bedroom apartment 35 minutes north of the city is 3K/month. Houses here start around 800K if they need quite a bit of work. If they're move in ready, you're looking at a million to start. All for the the privilege of giving California 9.3%, 1.25% property taxes (plus 30K "mud bond" if it's new construction) and soul crushing traffic. You'll need to really love it to justify the cost in my opinion. My auto insurance is more than double what it was in my home state. Sure, it's a nice looking place but if you want to go somewhere cool on the weekend, you'd better pack a lunch because the traffic is simply nasty. Everything is crowded on weekends when the city folk head to the country. I live in southern Sonoma County and on the weekends you'd swear the population has doubled. Just google "why I'm leaving the Bay Area" and read a bit. It's a lovely state; we loved skiing and backpacking in the Sierras, but I can buy a lot of airline tickets for $3000 / month and come visit when I choose. |
I wholeheartedly agree. California is horrible: politically, economically, and it is wildy overpopulated with unbearable traffic.
No one should ever move here, and anyone from another state or those with the slightest problem with the quality of life here should immediately move away. |
Originally Posted by Grumble
(Post 2509235)
I tried to make CA work because my wife loves it there....
Happy wife = happy life. If your wife wants to live here, just do it. Keeping her happy will have a far greater impact on your life than any of the downsides. You only live once. Life is too short and you don't get a do-over. Don't waste your time living somewhere you don't want to live. I refuse to regret on my death bed that I chose to live in a not as great area to save a little money. Yes housing and rentals are more expensive here. But housing is an investment, and if you've invested in CA real estate, then you've made a lot of money. Look at the issue from a different perspective. If housing is expensive, don't go complaining about it, but rather ask, how can I benefit from this? I also own a rental house in CA and I make far more money than if I owned that rental anywhere else. SFO and LAX are so junior compared to midwest domiciles that the bump in seniority, pay, QOL is well worth the extra couple thousand a year it will cost you to live in CA. Time is the most valuable resource on earth. It's the one thing that is a fixed amount and you cannot create or buy any more of it. I refuse to waste my time commuting. I live within 20 minutes of the airport I'm based at, and it's amazing. What is traffic? California is not for everyone. I get it. But you really should evaluate your values. If your values are living where you want to live, higher seniority, higher pay, higher job QOL, higher home QOL, saving time not commuting or driving far to work, etc..., then you may want to reconsider. |
Originally Posted by iahflyr
(Post 2509597)
I also don't think the GOP stands a chance at holding the house in 2018, or the white house and senate in 2020. So I'm confident man of those deductions will come back.
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Originally Posted by Levigarrett
(Post 2509669)
I moved to the Bay Area in 2014 after 14 yrs of commuting. I'm leaving in April. I'd rather commute again than stay here. Between the traffic, housing costs and exceedingly high cost of living it's not worth it to me. I can't wait to leave.
I'm single w/ no kids and I'm not willing to pay these taxes for the next 22 yrs of my working life. The Bay Area is crowded, very crowded and extremely expensive. My 2 bedroom apartment 35 minutes north of the city is 3K/month. Houses here start around 800K if they need quite a bit of work. If they're move in ready, you're looking at a million to start. All for the the privilege of giving California 9.3%, 1.25% property taxes (plus 30K "mud bond" if it's new construction) and soul crushing traffic. You'll need to really love it to justify the cost in my opinion. My auto insurance is more than double what it was in my home state. Sure, it's a nice looking place but if you want to go somewhere cool on the weekend, you'd better pack a lunch because the traffic is simply nasty. Everything is crowded on weekends when the city folk head to the country. I live in southern Sonoma County and on the weekends you'd swear the population has doubled. Just google "why I'm leaving the Bay Area" and read a bit. |
Originally Posted by full of luv
(Post 2510009)
Interesting....most of my CA neighbors/friends said there wasn't a snowball's chance in He!! that Hillary wasn't going to be the president in 2016 as well. Sometimes the echo chamber on the west coast severely discounts the rest of the country.
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I lived in California for 60 years. I watched the state deteriorate during the last 20yrs I lived there. Weather is awesome, Beaches, Skiing is great. So what happened? The generous welfare, unemployment and State Disability crushed the finances. The State workers receive the best retirement program - gold-plated medical, State employees do not pay Social Security Taxes. Law enforcement retirees retire at 97% of the pay by spiking their final earnings through all kinds of schemes. My last year in California I began to notice all the retired state workers with lots of "toys" and in essence living well. All these gold-plated state pensions come at a big price. So, where does all the money come from to pay for all that? Taxes. The state taxes everything. Property taxes while high, are low compared to other states because of Prop 13. The political class has been trying to end Prop 13 in order to pay for the exploding pension obligations. Why aren't the streets being fixed? Why are the bridge fares in the Bay Area rising? To pay for all the welfare and pension obligations. There does not seem to be an end to it.
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Originally Posted by iahflyr
(Post 2509597)
I'm in LA. Yes, houses are expensive, but it's more of an investment than a cost. As long as you can afford the mortgage payment, and your mortgage payment minus principal is somewhat comparable to what you might pay in rent, then you're good. I've generated far more wealth just owning my house in CA than I ever did in Texas.
For reference, I bought my house for 650k about 2 years ago (it's probably worth ~850k now). I do. It seems like the GOP tax bill will unfortunately raise taxes on most pilots (Losing union dues deduction, losing per diem deduction, losing personal exemption deduction, higher rates for 150-200k single filers, and the 10k cap on the SALT deduction). I will actually be ok. Right now I write-off about 11k in income tax and about 7k in property tax. I prepaid 3.5k of my property tax for next year, so I'm only losing a small amount of write off in 2018. Likely CA will either switch some of its income tax to a payroll deduction (which is tax deductible by the employer), or allow you to get a 1:1 state tax break if you donate to state charity. There are several bills in the legislature to make this happen right now. I also don't think the GOP stands a chance at holding the house in 2018, or the white house and senate in 2020. So I'm confident man of those deductions will come back. |
Originally Posted by sailingfun
(Post 2510502)
You might take a look at the recent IRS statements on the prepay. Looks like they have ruled it illegal accept in some very limited circumstances. I was going to do the same thing but did not qualify.
Californians and other high tax states are going to start paying their fair share of federal taxes. If they want a bloated, expensive state government, that's their choice. Going forward, their federal tax deduction for that bloat will be limited. Why should someone who lives in CA pay lower federal taxes on the same amount of wages than someone lives in NV and doesn't have a bunch of state tax writeoffs? Californians aren't paying their fair share of federal taxes. |
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