Reply to Maryland or Virginia?

Forum Index » Real Estate

Reply to "Maryland or Virginia? "

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]We’ve done a lot of digging into the new income and investment tax proposals. They are likely to pass because they are being sponsored by leadership and/or heads of committees.

OP, if you don’t make $500K+, the new investment and income tax proposals won’t impact you. It’s 8% on $600K+ and 10% on 1M+, and 3.2% on investment income IF your HHI is over $500K.

So the top bracket is 13.2% and would apply to say someone making $1.5M with $300K of that being investment income (rental property, etc). This would be the highest rate in the country if passed.

If you’re below $1M, VA still has less taxes than MD or DC. At the $1M mark, it gets closer and if taxes were your only deciding factor, it’s basically the same across VA, MD, and DC.

Also remember MD has the county tax which adds up once you hit $500K+ too, and DC has a brutal tax on $1M+ income as well.

VA also has much higher job growth and a healthier economy than MD due to the # of corporations here but DCUM gets rabid over that fact (apparently people aren’t aware Google and BLS data exists?). OP you can easily Google the data and see for yourself. [/quote]

The issue I have is that this is a very blind sighted tax approach. Every state that raised taxes like this saw an out migration of high net worth people, which meant the taxes never generated the projected revenues. There's been a steady flow of the very wealthy out of MA and NY and NJ and MD to places like Florida. The very high net worth people in VA will just switch their residency to a Florida property as long as they spend six months minus day out of Virginia. Corp c-level and business owners will just move their families to Florida and fly in a few days a week. Which means eventually the state will need to go to the next group of people and in the long run those who really get slammed are the dual professionals UMCs who aren't as mobile. High taxes never stop with the rich, unfortunately. [/quote]

I’m the PP you quoted and I don’t disagree. We’re at $800K now but my spouse is in a field with a high ceiling and we should hit $1M in 2-3 years and $2M+ within 6-10 years. We’ve actually already got a property in FL (it’s a shack but we could teardown and rebuild) so I could very well see us doing the 6 months + 1 day thing once HHI is well into 7 figures. Idk how we’d sort that out with schooling though - we’d have to see if privates in FL are less than the $ we’d save on taxes.

I do think we’ll see a flight of wealthy retirees who aren’t tied to school calendars.

The MA data is interesting too that the other PP raised. [b]I do think MA is very different from nova in that the MA wealthy have been there FOREVER - basically since they got off the boat in the 1600/1700s. You know Brahmins and all that. Your average wealthy MA person was probably born and raised there. Those roots run wicked deep ; )[/b]

Whereas nova is VERY transitory. Your average wealthy person more likely than not moved here, made money, and can move again. So we’ll see…[/quote]

Just...no.[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics