The media has played up the mass exodus from California underway the past few years as Golden State residents have ostensibly fled the state’s repressive taxes in favor of low tax havens like Texas. But the reality is that Texas is only a “low tax state” for the top income earners. Because California has a graduated income tax but Texas doesn’t, the vast majority of Texas actually pay more in taxes than their counterparts to the west.
Jimmy discusses the comparative taxation approaches the two states take and why most of us will pay less living in CA than TX.
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