No state income tax likely does make this closer to $70k annual for most of those employees. If they get to keep their California salary it's a great deal.
They were offered a $7k one-time provision to offset relocation costs, the $70k figure was just a hyperbolic quip by the commenter you replied to. The average cost of housing is certainly lower, but despite the lack of an income tax, the average state and local tax burden for median incomes in Texas is significantly higher (12.73%) than in California (8.97%) [1].
The only people for whom Texas is a better deal for taxation are in the highest income brackets, higher even than tech workers at Apple. This is the case even though access to healthcare, higher education, and public services tends to be worse. This is why eliminating income taxes in favor of consumption and property taxes is widely considered to be regressive and disproportionately targeted at lower and middle class households. The higher median tax rate then seems to simply be a redistribution mechanism to funnel additional wealth to the wealthy on the backs of working Texans.
> the average state and local tax burden for median incomes in Texas is significantly higher (12.73%) than in California (8.97%)
> The only people for whom Texas is a better deal for taxation are in the highest income brackets, higher even than tech workers at Apple.
I pay 4-5% of my individual income in local property taxes of all types, and we pay less than 4% of our household income. And that's after recent large increases in our property value. We live in the city limits of Austin, one of the more taxed places in TX. We bought outside of downtown, but actually nearer most tech companies than downtown. Our neighborhood is perfectly safe, paying less didn't affect that. If you're in TX paying 12% of your income in taxes you probably either have a low income and inherited more house than you could otherwise afford or you made a foolish decision on where to live(had to be in that trendy part of town).
nativeit|2 years ago
The only people for whom Texas is a better deal for taxation are in the highest income brackets, higher even than tech workers at Apple. This is the case even though access to healthcare, higher education, and public services tends to be worse. This is why eliminating income taxes in favor of consumption and property taxes is widely considered to be regressive and disproportionately targeted at lower and middle class households. The higher median tax rate then seems to simply be a redistribution mechanism to funnel additional wealth to the wealthy on the backs of working Texans.
[1] https://wallethub.com/edu/best-worst-states-to-be-a-taxpayer...
TexanFeller|2 years ago
> The only people for whom Texas is a better deal for taxation are in the highest income brackets, higher even than tech workers at Apple.
I pay 4-5% of my individual income in local property taxes of all types, and we pay less than 4% of our household income. And that's after recent large increases in our property value. We live in the city limits of Austin, one of the more taxed places in TX. We bought outside of downtown, but actually nearer most tech companies than downtown. Our neighborhood is perfectly safe, paying less didn't affect that. If you're in TX paying 12% of your income in taxes you probably either have a low income and inherited more house than you could otherwise afford or you made a foolish decision on where to live(had to be in that trendy part of town).
Bonus: cheap gas, cheap electricity, cheap beef, cheap groceries at H-E-B
eep_social|2 years ago
I don’t know about Apple in particular but this is not generally how this works.
Also, I’m not sure $70k to have to fly my daughter out of state for health care is a good trade, ymmv.
Boatfaceing|2 years ago