Moving Can be a Taxing Decision

So, what motivates federal employees and others toTexas, (6) Washington and (7) Wyoming. In addition,
move during retirement? While there may be otherNew Hampshire and Tennessee only tax interest and
factors, this list covers a number of the considerationsdividends.
many of our fellow baby boomers and others considerLikewise, it should be clearly said that a total of 26
important in making such a decision.states plus the District of Columbia do not tax Social
First, we may decide to move because a specific jobSecurity benefits. IMPORTANT: Our web site, is
offer emerges from either the private or public sector.against any states taxing Social Security income. From
This offer to someone in greater demand could alsoour standpoint, because of the current and coming
include a future independent contractor status orlabor shortages and especially because of the current
registration with a speaker's bureau or talent agency,skills shortages, our society cannot afford to do
for example. Or, it may include starting your ownanything, which has the net effect of discouraging men
business or even buying a franchise with anand women from continuing to work in America.
established business plan and strategy to pursue.Finally, other men and women will factor some or all of
Second, we may decide to move because of familythese issues into consideration, when deciding where
considerations, which range from aging parents toand when to move in our society. In the final analysis,
relocating so that we can be closer to our children andeven local sales taxes and property taxes can and
grandchildren. In fact, a number of my daughter'sshould enter into this equation. For example, the City of
closest young adult friends in Greater St. Louis haveChicago recently passed an incredibly high local sales
talked about their parents taking precisely this steptax, which put this great city at or near the top of local
recently. By the way, this observation includes thesales taxes in the whole US among major cities. Of
movement of grandparents to the St. Louis area, whocourse, this consideration only becomes important
have never before lived in that region.when someone wants to buy something, whatever
Third, men and women also choose to move to athat may be.
more exciting part of the US or they may choose toTo tax or not to tax -- that will indeed be the question
live abroad, which an increasing number of Americansfor state and local governments in the future in the US
are now deciding to do. For example, a fellow babyand elsewhere, as a wave of baby boomers begin to
boomer web entrepreneur, Ann Fry, decided to moveconsider all of their relocation factors and options.
from Austin, TX to New York City over the past year"Yes," state and local governments would like the bank
and she has never looked back on her decision. Thedeposits, which provide the necessary capital needed
62 year old Ann runs a successful web site plusfor consumer loans and local businesses to expand
works as a motivational speaker and career coach.and create even more jobs in that area. "Yes," state
So, part of her relocation formula has included anand local governments would also like men and
upsurge in her speaking engagements and coachingwomen, who will not be adding to the local student
assignments, especially since she moved to New York,population in our nation's public schools, but who will
despite the warnings of doom and lack of successnever the less be adding to the local property tax
from her Austin, Texas-based friends.base. "Yes," state and local governments would also
Fourth, other men and women choose to move to alike to have men and women, who are creditworthy
different part of the US especially for tax reasons. But,and who have a greater equity position in their homes
of course, the question, which quickly emerges in thismove into the community.
complex set of variables is "which taxes?" Many of usBut, what if anything are these state and local
no doubt already know Texas or Florida (part-time)governments willing to do in order to court "our" favor,
citizens, who have emigrated to these states becauseyou might logically ask? This writer submits to you that
neither levies a state income tax. Of course, thethe answer to this question will cause state and local
winning formula is that "they" actually live in theirgovernments around the US to make a whole series
adopted states for one-half of the year plus one day.of different decisions, both now and in the near future,
But, did you know that there are actually a total ofin order to demonstrate "their friendliness" to my fellow
seven states with no income tax as follows: (1) Alaska,baby boomers, who are 78 million strong just in the US.
(2) Florida, of course, (3) Nevada, (4) South Dakota, (5)