Why Northeast States Are Bleeding People

Steve McDonald By Steve McDonald
Bond Strategist, The Oxford Club

Slap In The Face Award

Transcript:

Here’s a well-deserved slap for the lawmakers and tax and spenders in the Northeast.

The Northeast is bleeding people. Data is pointing to big population losses from 10 states… and half of them are in the Northeast.

Vermont is No. 1, with New York, New Jersey and Connecticut in the top 10. One of the reasons cited by those moving to the South is they’re concerned they’ll never get out of debt if they stay in the North.

The Northeast states that are losing residents have long been known to be some of the most expensive places to live. But here’s where it gets real…

The top losing states also have some of the highest income, sales and real estate taxes in the country.

New Jersey, New York and Vermont are in the top 10 for personal income taxes. And Connecticut joins those three in the top 10 for combined income and sales taxes.

Texas and Florida, two of the most popular locations to retire, consistently rank as two of the states with the lowest taxes.

Now, help me here… Which part of this equation do the lawmakers in the Northeast not get?

I made the move to Florida six years ago and have never looked back. Our roads are in great shape, the local public high school has a great reputation, my taxes are about one-third of what they were in Baltimore (I can’t believe Maryland isn’t in the top 10 for taxes), and there’s no state income tax. That alone is a huge savings.

We do have a 7% sales tax, but that’s just 1% more than what I was paying in Maryland.

And don’t give me the “but the Northeast has more jobs” baloney. Texas and Florida are ranked No. 2 and 4 in GDP, respectively.

Can anyone please explain to me which part they are missing up there? Taxes, the cost of living and snow?! Come on! You’ve got to be kidding me.

Good investing,

Steve