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The state with the lowest overall tax burden - Wyoming
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09-17-2008 2:57 PM
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Clair Schwan



- Joined on 09-10-2008
- Cheyenne, Wyoming
- Posts 26
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The state with the lowest overall tax burden - Wyoming
Hello all:
The subject of taxes is right up my alley. I moved to Wyoming to be one of the tax dodgers. It was my #1 reason for moving here, and for the last 10 years I have had no regret.
Here we have no income tax, 4% sales tax, and some of the lowest real estate taxes in the country. With consistency, Wyoming ranks at the bottom of the heap when it comes to overall tax burden on a family of four making $35K, $50K, $75K or $100K.
As an example, I pay $2,000 real estate taxes on a 4,500 square foot house on 12 acres, and I have a 2,400 square foot barn and three outbuildings. In Nebraska, a residential homeowner might pay 50% more real estate tax for half the house, no acreage and no outbuildings.
When I moved from California in 1998, I dodged $660 a month in state income taxes, and that allowed me to pay for everything each month without ever touching my net pay. I just paid for everything each month out of what I was throwing away in California.
You do the math. $660 a month for the last 10 years, and compound that with a modest interest, and you might be surprised at how much that is.
Moving to a tax free state can have a big difference in your bottom line. There are nine to choose from.
Clair
http://www.frugal-living-freedom.com ...living well, and well within your means...
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latenightleader


- Joined on 04-02-2007
- Posts 3,601
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Re: The state with the lowest overall tax burden - Wyoming
Do you see a big difference in services offered? I live in a heavily taxed state, and it's always said that we get amazing services, but I don't have a comparison.
Tracy Beginning Debt Slayer
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Clair Schwan



- Joined on 09-10-2008
- Cheyenne, Wyoming
- Posts 26
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Re: The state with the lowest overall tax burden - Wyoming
Tracy:
Everything has it's price - no exception. With high taxes you expect a higher level of service, but I can honestly say that I see no difference in services between Wyoming and California. Streets get plowed, crimes get solved, fires get put out, and I think our roads are in good condition. In fact, I often wondered what I was getting for my money in California. I'm still wondering.
Of course I don't use many services no matter where I live, but those that I do use seem to meet my desires just fine. You have to remember that I live in the capitol city of about 60,000 people, and the whole state has about a half a million in population. It's not like there are many millions of people demanding service.
If you have ever been in Maryland, consider that Wyoming is 1/100th the population density of that state. We have 10 times the land and 1/10th the population.
When you look at the influx of money versus the population, Wyoming is #2 just behind Alaska. States where there is higher population have a much lower ratio of dollars coming in versus population. That makes Wyoming a federal welfare state of sorts.
Although our demographics are changing, we generally don't have people on public assistance, nor do we have lots of retired folks. Our crime rate is low, our cost of gas is among the lowest in the nation, and our idea of customer service generally leaves something to be desired.
We have been the #1 or #2 business friendly state in the country for as long as I can remember. No corporate taxes, no inventory taxes, and it's easy to setup shop here. As for my sole proprietorship consulting business, no one really knows I have one, and no one cares.
Young folks get an education here, but they don't tend to stay. We have to encourage businesses to establish themselves here, and we are experiencing a shortage of medical practitioners.
In Cheyenne you might encounter things that you never thought possible. Once I called the assessors office, and the county assessor answered the phone and answered my long list of questions. A friend of mine went to the secretary of state's office to submit paperwork associated with incorporation, and the secretary of state came out of his office and helped my friend submit the forms.
I once accidently sat at a reserved table during a chamber of commerce meeting, and before I knew it, I was having lunch with the governor. No one cared that I wasn't supposed to be at the head table. I've seen the governor shopping at Sam's Club and the local hardware store.
My neighbor and good friend across the road is former #1 in the highway patrol, and my neighbor to the west is current #2 in the same organization. The neighbor on the corner is the city engineer.
It's very different than other places I have lived. If you want to be a big fish in a little pond, this is a place you can do it. I'm not interested in that kind of stuff, but it's just the way it is.
The real highlight for me is that my job is higher income than most around here, and it is highly portable. I could move anywhere I want. Moving into this lower cost of living and lower tax burden area made my money go farther, and that's a big advantage.
As for other "prices" you pay, there are many. Wyoming isn't forward thinking. It doesn't have lots of employment opportunities, and the pay is generally low. Most people who live here are hard working people and we enjoy our freedom and the unpretentiousness of our neighbors.
Oh, and we also enjoy the high winds, six months of winter, up and down temperatures, dry climate and slower pace of life. It won't work for everyone, but it works very well for me.
Clair
http://www.frugal-living-freedom.com ...living well, and well within your means...
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latenightleader


- Joined on 04-02-2007
- Posts 3,601
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Re: The state with the lowest overall tax burden - Wyoming
Interesting- We need lots of tax money for snow plowing, where does yours come from? We have phenomenal education opporitunites, but also the big cities have a very poor graduation rate. We have a very high level of the citizens with college degrees. Part of that is there are tons of colleges and universities here. We have good police departments, but Minneapolis's nickname is Murderapolis, the rate of murder per population is high. We have constant road construction, but outdated roads and a rush hour that rivels bigger metro. We do have tons of green space and parks, that I haven't seen rivaled any where else. A con is that it is a difficult state, I think, to do business in, very many steps. Legalistic. The twoother states I worked, you could just, do business. Here it is hard, you eed lawyers and accountants.
A pro is the medical facilites for physical ailments, including the Mayo clinic. A con is the lack of resources for emotional health, a throwback to our "buck it up" farming philosophy, maybe. The average household income is high, but part of it is spent in high utility bills. And high property taxes, some of which is returned in a rebate if you are lower income. We are a place where immigrants come to, with large Hmong and Sudan populations. The cultural opportunities here are amazing, with theatre and galleries, a symphony and free outdoor venues. The bandshell by my favorite lake had about 60 concerts, free, this season. I enjoyed visiting my sister at school in Wyoming several years ago. I was shocked by the prescence of guns and dogs in trucks and downtown, and loved the antelope and snow so close in the mountains. Are there still so many guns in trucks? Do you drive a truck? My state is the minivan state, I think the pressure must be on to buy a truck when you move there! Yes, I drive a minivan.
Tracy Beginning Debt Slayer
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Clair Schwan



- Joined on 09-10-2008
- Cheyenne, Wyoming
- Posts 26
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Re: The state with the lowest overall tax burden - Wyoming
Tracy:
Relax, guns in trucks mean you're in The Cowboy State where the ranch hands press their jeans and wear a white shirt on Saturday night. The guns are for coyotes and criminals, not for you and me. We have a low crime rate - and there's good reason for that.
Our money for nearly all services and infrastructure comes from minerals: oil, gas, coal, uranium, trona, soda ash, bentonite and others. We are also a big tourist area. All other sources of income pale in comparison with minerals.
Cheyenne has a first class symphony, botanical gardens, and more open space and parks per person than most anywhere else. We also have a nice mall. For college life, you go west about 45 minutes to Laramie, or south about 45 minutes to Fort Collins. If you long for the big city, Denver and about 2 million people are only about 90 minutes away.
In any event, if you travel more than about 10 minutes, you're out of Cheyenne and into the prairie.
Cheyenne has about 1 or 2 murders each year. The bigger drawback of this town is the oil refinery that is only a couple of miles from the center of downtown.
You've probably heard of Cheyenne Frontier Days - the largest outdoor rodeo in the U.S. We also have lots of other festivals and entertainment at the Depot downtown throughout the summer. We have a skating center and miniature golf, and the city keeps trying to build a recreation center as well. It's a regular big small town.
The best part of Cheyenne is that you're expected to wave hello to folks on the street, even if you've never met them before. We also have the best garage sales anywhere, Friday through Sunday.
Yes, I drive a truck, but it isn't required nor encouraged. I prefer my car and motorcycles. You can be who you want to be in Cheyenne.
As for dogs in the pickup trucks, my little buddy Humper Go-Play Lickerson (a.k.a. Dude) goes with me just about everywhere. I rescued my Boston Terrier buddy from the animal shelter in town. The Dude is a big hit at Home Depot, the bank, Sutherlands, the UPS store, the motorcycle shop, the tire store and the ranch store. He's never on a leash, and he is always well behaved. Try that in a large city.
For a taste of Cheyenne, see my website page about garage sales. It's http://www.frugal-living-freedom.com/garage-sales.html I even have a couple pictures of The Dude and his favorite garage sale item - basketballs. He goes to a few sales with me too.
Clair
http://www.frugal-living-freedom.com ...living well, and well within your means...
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cheapChic



- Joined on 09-26-2007
- Washington
- Posts 1,991
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Re: The state with the lowest overall tax burden - Wyoming
Hello clair and lightnighter,
I read the your forums I travel threw the state and yes it can be very pricey in the sale tax department you know the tourist trap areas in the state late nighter what is the sale tax rate in your state and clair what is the state sale tax in your state mine in washinton along with organ and california are the highest in the ntion here from what I am told i really don't now..
My tax is 8.8% or 8.9% I need to look up on a sale recite tomorow but all three states pay higher in gas and oil the rest you need to look up on the web but faint at the tax stuff on the gas taxation we have geezs can;t win in your state also I am there every 3 or 2 years you all have your share yes low crime rates but the drug and gang come hide in that direction also so you all have your share just like us plus clair love the artical on garage sale pretty coll huh???
Thnks for bringing this up makes a person think late nighter and clair...
cynthia and side kick weeniedog daisy mae...:)
cindy Work out your own salvation,do not depend on others------buddha
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Clair Schwan



- Joined on 09-10-2008
- Cheyenne, Wyoming
- Posts 26
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Re: The state with the lowest overall tax burden - Wyoming
4% sales tax in Wyoming, with an extra penny or two voted in temporarily. Wouldn't be surprised if it sticks.
Clair
http://www.frugal-living-freedom.com ...living well, and well within your means...
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latenightleader


- Joined on 04-02-2007
- Posts 3,601
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Re: The state with the lowest overall tax burden - Wyoming
Enjoyed your website! Minneapolis- we are in a suburb, has had about 30 murders so far this year. Our real estate taxes for a $249,000 house are about $2,000, our sales tax is 6.9% although food and clothes are exempt, and our gas tax is 40 cents a gallon. Yours in Wyoming is 32.4 cents.
This is an interesting document- http://www.minnesotagasprices.com/tax_info.aspx California is sooo high, look at that. That seems like an unfair tax, but maybe fair, I guess it is a use tax. I guess that is a good discussion at some point, which taxes are the most fair? Your rodeos sound like great fun. I have never been to one.
Tracy Beginning Debt Slayer
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