Income Tax Free States – Mismanaged state and local governments, are they creating an opportunity for the state of Texas or other states in which there is no state income tax? Let’s kind of think about that. We’re going to dive into this one right here and we can think about some states that are having challenges. I have some reference material, so we’re going to put that up here in just a second and chat and a link to you so you can take a look. But there are some states that have all types of things in different cities.
Let’s talk about New York City. They think that it’s a good idea right now. Yeah. They think it’s a good idea to have a city income tax in addition to their state income tax. And due to poor mismanagement, they now have taxes that are going up. So they’re going to be raising their taxes both at the city level and at the state level on income. So what does that mean? But they’re only raising it on the most wealthy people who have made a lot of money. Why? Well, I don’t know. We’re going to take a look at this article and we’re going to report we’re reporting it and you can decide.
So this is coming to us from CNBC. We’ll give them the proper credit. And as we look through this article, we can scroll down and see that they are raising their taxes. And this gentleman has been in the news recently. Andrew Cuomo, I’m not sure maybe you’ve seen some of his finer work that he’s done and you can go ahead and see what that means.
But there was you know, the virus came along and they had some different opportunities to spend money different ways. And when you overspend sometimes or mismanage things for a long period of time, eventually that comes back to roost and you have to pay it back. So now. Yeah, exactly.
So what happens is we have to raise the taxes there. So what we’re seeing is that these tax rates are going up. So imagine now that all of a sudden you start you’re a wealthy individual and you have a choice and they’re your income is now getting taxed at a much, much higher rate on your personal for state and for city taxes. And you’re like, do you even have a city tax where you are? And the answer is probably not. There’s not many places that do.
OK, so all these people are moving in, migrating away. So if you think about states with huge budgetary problems, you were just in one recently. Right. And now we have one here in New York. And what’s happening is these uber wealthy people are making this decision. They’re like, should I continue to stay here or should I look elsewhere where there’s no state income tax?
So we can take a quick Google and look up some states where there’s no state income tax. But I will let you know that where we live happens to be one, right. Other states that have no state income tax. I know Montana has none. Florida, right. Florida’s one. I don’t believe Wyoming has won Nevada. I believe a state income tax. Unless somebody can fact check me on all these things that I’m throwing out there, I we need a list.
Maybe we do need a list out there and has a list, chat in some other states that, you know, that have no state income tax. So those states are going to be ones that people that have a lot of money or high income are going to be looking for moving towards what you
Tried as wealthy. Well, I guess it’s on their five million to.
Yeah. So they have different numbers. So they’re taxing people that make half a million a year or more an income, a higher percentage. And then if you make a million a year or two million a year or ten million. So they’re taxing those at increasingly higher numbers.
But those are the people that make the decisions on where the business resides. This article here will point out that there’s a lot of the super large companies because imagine if you run a big, highly competitive company and you’re paying all of your employees a lot and you think about that, you have hundreds or thousands of people that are making numbers that are hundreds of thousands off on an annual basis, while if all of a sudden they are effectively become becoming poorer because they’re being taxed more, you need to now pay them more.
So it’s like it’s a double tax on the owner of the firm, because now what you’re doing is they are paying out their income tax. Right, for the company and for the personally and now to make their employees just whole and the same, because this new tax, then they got to put more. So it’s not that. It’s just like a single tax in a single person at the company level or the ownership level. It’s a tax on them. It’s a tax on everybody they pay.
Yeah, it’s well. I don’t know, it’s kind of like kicking themselves in the gut, because those are, like you said, those are the people making the decisions and the business owners and corporation CEOs and know they’re going to move their business so well.
So we’re just reporting that this is all happening here. So if you’re looking for a lot of high paying jobs to come to your area, keep your state income tax free and make sure that you just are here to capitalize as soon as all these companies are ready to leave.
The state of Florida is one of those in particular that’s mentioned in this article. And we’ll chat that link in to you so you can read the whole article and you can do some research on your own. But they’re starting to see a lot of people considering moving to the state on a corporate level. And when you start to see those big things, I imagine locally we had companies start to move here. Right. And we had Toyota move in and we had Liberty Mutual and we have all these different things.
Well, what if that happens again in more and more and more? Because there’s decisions that have to be made. Yeah. If you’re getting out of your lease and the pay taxes. Right. If the virus made you move and all of a sudden your lease is. I thought I’d do it. Yeah. And now you have a choice on where to locate. Yeah, right. I don’t know. It’s why we’re seeing it. There’s a lot of stuff going up in the last couple of days. You’ve just had clients galore that you’ve been speaking with that are that are at the next level. Yes. In one day that we had an agent talk with
somebody for a five million dollar transaction. We had another one that contacted us directly into outlying state to be doing some business with us for a five million dollar transaction. You showed a client for a one point seven and they couldn’t even find a house for that price that was reasonable.
And to go up to two point five, OK,
Now, where you didn’t have to but like have to know but to find what the person wanted. But that same home would have been like one point last year, you would have been able to find. So things are things are crazy here. There’s a lot of money moving here in this big money is coming from these other places, New York, California, the typical suspects. And they’re all bringing a lot.
And that’s a good point. People often ask us, what is happening here? Why is this happening? Well, this is why and this is why it’s driving the prices up, because people from other states have the money so they can come in and it’s happening so well.
If you’re following along at home, I’ve been kind of given some forecasts on some things that were happening here. And I’ve talked about how there’s this great realignment that’s going on with this new thing. And I’ve I’ve said that it’s going to be as big as the industrial revolution for what’s happened. And this is now a real estate. You know, they’re really I have a word that I like to use
It’s a real line. It’s a real estate realignment and there’s people moving all over. But it’s definitely a revolution that’s going on here on how the money is getting the how the real estate is getting redistributed all across the country. And as we take a look at that, there’s some more stuff that goes along with that. Ronald Reagan had a phrase, OK, so this is what this is an original directly from me.
Ronald Reagan had a phrase with trickle down economics. Right. And trickle down economics. What happened here is it was supposed to be that you taxed the wealthiest people less and then they would spur on the economy and then money would come to everyone else and things would become better. And it was trickle down economics. And Ronald Reagan ran ran for president based on that. And one, I don’t know, just saying some people think he’s a good politician, right? So in this real estate situation, I’m starting to look at this. And what we see now is rural real estate is really doing well.
OK, and is this a rural triple real estate situation? I have to work on the verbiage to find the exact vernacular. But essentially what’s happening is all this money is going into rural real estate. I can’t tell you how much we have. I talked to Stacy the other day and she’s talking about ag loans and for Farm and Ranch. And we have one particular lender that we now have for transactions in with which we simultaneously. Yes. That does farm and ranch loans we have in our past. I can’t think of a time in the past that we did one
Like in our career, maybe a handful.
Yeah. And now we’re doing four simultaneously and they’re each large. It’s crazy. So now all of a sudden we start thinking about this like, wow, it’s really going on. So there’s a lot of money getting redistributed all across specifically to rural locations or just a little bit further out.
So as it’s happening, there’s a trickle effect that this is going on. So I’m going to find the exact words, but we’re going to find something to Ronald Reagan. We’re going to use the word trickle. We’re going to incorporate rural and distribution. And there’s going to be somehow some effect that goes on to this. And we’ll coined the phrase and put it out there for you.
And I do think that what I see are these little small towns. Everybody seems to be fixated on, you know, Plano, Frisco, McKinney like the bigger cities. But you’re going to start hearing about these smaller cities and they’re going to boom, almost like a gentrification because it’s just going to be a forced gentrification because, you know, people can’t find anything else. So there you go. Kind of cool. OK, it definitely is.