The “Texas Miracle” loses some of its magic as Oracle announces it’s moving its new HQ out of Austin and Tesla lays off nearly 2,700 workers.
The “Texas Miracle” loses some of its magic as Oracle announces it’s moving its new HQ out of Austin and Tesla lays off nearly 2,700 workers.
The bottom 20% of earners aren’t likely to make the same amount in CA vs TX.
California’s minimum wage is $16. Working 40 hours (hard on a minimum wage job for reasons) brings $640 a week. 10.5% of that is $67
Texas’s is $7.25. 40 hours of that job is $290. 13% of that is $38.
In this bad example, a minimum wage earner in California pays almost double the tax than a minimum wage worker in Texas. It’s a bad example for many reasons, including us not taking into account the extra spending power the California worker has after taxes.
Youre talking about the total dollar amount of taxes paid, which is irrelevant because of regional differences. What you can compare is percentage of income, which is a metric that works regardless of total dollar wages.
Someone paying $100 to the tax man when they only make $5000 is more of their money then someone paying $200 to the tax man when they make $15000. The first person is paying higher taxes. The total dollar amount is irrelevant compared to the percentage of income paid.
The data is very clear. Almost all Texans pay more of their income to state taxes than almost all Californians. The fact that California provides a more than doubled minimum wage than Texas while taxing people less is a feather directly in their cap.