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Subject:  Re: Retirement Locations Date:  5/29/2011  7:33 PM
Author:  fleg9bo Number:  17189 of 20640

These difficulties can be remedied by a nice sales tax in Oregon, don't you think fleg?

I'll see your OR sales tax and raise you a WA income tax.

Someone said earlier in this thread that taxation is not usually a big factor in choosing where to live, and I generally agree with that. When I retired we wanted to get out of CA and DW wanted to work some additional years. That narrowed our choices to areas where her company had branch offices she could commute to. That meant Portland or Seattle in the PNW and we didn't want to live in Seattle--in spite of the savings of maybe a hundred thousand in state income tax over time, the higher cost of housing would have eaten up the savings. Clearly taxation was one factor among many.

A couple of years after we moved, they shut down the Portland office and outfitted her to work from home. That meant we could live anywhere as long as there was an airport nearby for her business trips. I wanted to move 15 miles north to the other side of the Columbia and save ourselves the state income tax going forward, but she was already too firmly rooted here and wouldn't move. Again, taxation took a back seat to other factors.

If she had had the option to work at home from the start, we would likely have ended up in the Vancouver part of WA, which is part of the greater Portland metro area, and had similar housing costs to Portland but without the income tax. Oh, well.

Every once in a while the specter of a sales tax raises its ugly head here and gets beaten back down--as in WA the specter of an income tax does the same thing. Usually the OR proposals include a reduction of income tax to make up for the sales tax but you know how that goes--having two different taxes that can be raised on you is more dangerous than having one.

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