Debt Consolidation Blog

Archive for the ‘Debts 101’ Category

Few states charge as high a tax on personal finances than Wisconsin. However in this particular state, the tax burden falls mostly on the shoulders of the middle class. Although every state distributes their fees uniquely, Wisconsin has a high rate of dissatisfaction among its residents for the amount of taxes paid out to the state each year. With the economy slowly recovering, critics worry whether this will bring new residents to the state to help stimulate its economy or instead will push long time residents away.

Wisconsin has been one of the highest taxing states in the past but now that has begun to change. They have managed to balance their deficit through the use of smart accounting and borrowed funds. However in their effort to restructure their method of taxing, the middle class has been hit with the highest tax burden in the state. For residents of Wisconsin making 88,000 or less, the amount of taxes and fees paid to the state are extremely high. The two main taxes are property taxes and income taxes. For the people of Wisconsin, this amount is 25% higher than the national average. According to Todd Berry, the president of the Tax payers alliance” The two [taxes] are noticeable and they are memorable…that’s what the middle class sees.” The overall tax burden for the middle class amounts to almost 10% of their income, a significant amount.

Many worry that the state’s attempt at easing their financial burden by raising taxes will only end up hurting their economic growth. For one thing, personal income in Wisconsin is lagging behind in comparison to other states. Many critics of Wisconsin’s tax structure say that it is inadequate to promote statewide growth and fund basic needs such as education. Whether the tax structure will work in the long run is yet to be determined.

One positive step for Wisconsin is that the amount of taxes they have charged overall is on the decline. After years of being classified as one of the nation’s top 5 worst taxing states. This past year saw a generous dip in taxes and fees in the state of Wisconsin. This past year, the state’s spending fell below the national median and ranked 26^th in the nation. It’s tax ranking came in at 14. However the state relies less on fees such as tolls, garbage collection fees and the like. Instead, the majority of its funds are gleaned from income taxes and property taxes. Of which the middle class ends up paying the majority.

Many of Wisconsin’s residents are feeling the strain on their income from the tax burden that has fallen on their shoulders. It is a difficult situation, but someone must end up paying for the state’s spending needs. Each state has its own responsibility for structuring their funding and Wisconsin has chosen this method. Although the tax burden on the middle class is high, Wisconsin has managed to lower their overall tax amount and the distribution method has some critics worried. Whether the tax burden falling on the median population of the middle class will hurt the state’s potential for economic growth in the long run remains to be seen.

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice

If you are like many Americans, the recent decline in the economy may be causing you to seek a home elsewhere. Americans looking for affordable housing options have found themselves having to relocate to other states. However although cost of living may be less elsewhere, property taxes are a consideration to keep in mind when relocating. Texas is one such state with high property taxes. In fact it has the highest property taxes in the nation with no potential decrease sited in the near future.

In the state of TX, local taxes have skyrocketed in recent years. According to recent statistics, property taxes are 3.53 percent of personal income in Texas making the state 12^th highest in the nation. In addition property taxes equate to 1.82 percent of the home value which makes Texas the second highest for this category in the nation. The only state to supersede Texas in this area is WI.

One of the reasons for the high property tax rate s in Texas is the lack of personal income tax. The state must make its revenue somehow and property taxes are the way they are making up for this loss. As such the causes are not so much political as they are economic. Many Texas residents are aware of this discrepancy and are seeking solutions.  In fact, citizens have imposed a tax and spending limit on their local government.  The Texas residents are also demanding that property tax appraisals be more closely monitored in an effort to lower property taxes overall.

In past years, Texas has been considered a state with a low tax burden allowing for major economic growth in the more populated areas. However, in recent years, that tax burden has become heavier and in turn has put a strain on the state’s economic growth.  There has been a direct correlation between Texas’ tax increases and the tapering off of their economic growth. This is because the increase in taxes has seen a major surge in local revenue and spending in Texas. Because of this, local revenue has increased more than personal income.

A resolution to this problem for Texas residents would be new legislature which would impose spending limits at the local as well as state level. Temporary property tax relief is simply not sufficient to provide a solution to this problem. There may be the possibility for new legislature being passed as Texas residents continue to put pressure on elected officials to help bring these necessary changes to pass.

There are many areas of Texas that continue to flourish. Houston a city with many major businesses continues to provide employment for many Texas residents. However when considering relocating or buying a first home, the high property tax rate and its effect on the local economic growth should be a major consideration.

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice

The United States economy is showing signs of marked improvement and the state of Idaho is a high ranking contributor. The recent census of 2010 showed dramatic signs of growth for the state as its population continues to grow at a steady rate. Yet despite the increase in population and the fragility of the nation’s economy, crime rate s remain low in all States.

The entire state of Idaho ranked fourth overall in population growth for the census of 2010. Since the last census in April of 2000, Idaho’s population has shown an increase of 273,679. Its new total is 1,567,582. Idaho ranked 4^th in the nation for overall population growth which portends well for the state and will continue to boost the overall economy of the United States as a whole. Population growth has long been an indicator of strong economics and Idaho is leading the nation with its steady incline in this area.

Other states that superseded ID in Population growth included California coming in at most populous with a total population of 37,253,956, it had a ten percent growth increase. Texas saw an increase of 4.3 million people which was the highest nominal growth overall. The entire U.S. saw an overall increase of 9.7 percent since the last census in April 2000. The total reported population of the United States was 308,745,538.

Increases in population usually accompanies higher crime rates however the good news is that despite the increase in population growth, U.S. crime rates have remained consistently low and have even showed signs of decline. According to a report released by the Federal Bureau of Investigations, in comparison to 2008, violent crimes decreased by 5.5 percent, property crimes decreased by 4.9 percent and there was an overall decrease in reported crimes for the third consecutive year since 2006. In a nation that is slowly recovering from a difficult economic downturn, these statistics bode well for the future.

Despite the increase in population across the country, the cities with the highest population showed a significant decrease in crime rates. In fact cities with a population of one million or more such as Idaho, exhibited the largest decline in property crimes which showed a decrease of 7.9%. There was also a 21.1% decline in motor vehicle theft in these cities as well. According to the F.B.I reports, arson was another crime which fell significantly lower in recent reports and has declined 10.4% over all states.

These findings bode well for a nation that is recovering from the constraints of a troubled economy. High population growth and decreased crime rates are an upward trend that reflects positively on the nation as a whole. While these statistics are not a guarantee that crime will remain low, it lends hope for the future of a nation in which the economy will stabilize, the population will continue to thrive and crime rates will continue to decline.

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice

Maine has traditionally maintained a steady population over time with no exceptional sharp inclines or declines. With a steady manufacturing industry at the heart of its economic growth, Maine has managed to maintain a consistent amount of its residents over time. Although it has been limited by its lack of modern businesses, that may yet be changing as new businesses open up to stimulate the state’s economy.

In the past, Maine has come in low on the population scale in relation to other U.S. states. It’s poor soil climate prevent it from creating a large farming industry. In addition its distance from industrial and commercial centers has caused this state to maintain its low plateau of growth. However the 1980’s saw a sharp boost on the state’s economic growth as it developed its trade, finance and service industries. The state’s economy was also burgeoned by its large tourist revenue. Islands and picturesque coastal regions have continued to draw vacationers and tourists to Maine year after year.

Although tourism and business increase have seen a nice incline in the past years, traditional sectors of Maine’s economy have been on the decline. Fishing is one such income source which has dwindled in recent years. Except for the export of lobster, fishing as a major revenue source is no longer what it was in days past. Logging has also seen a decline in the state that was known for having the first sawmill in America in 1623. This drop off in logging is mostly due to the extinction of the large logging trees in the area. Instead, Maine loggers now specialize in papermaking from the pulp of the smaller trees that remain.

Although logging and fishing have tapered off as a revenue source, Maine is still one of the largest producers of paper and wood manufactured products. This has helped to bolster its economy in an otherwise difficult financial climate. Maine also has a significant resource of granite and natural stones although this market is still as yet underdeveloped.

Despite the decline in the stimulation of the economy and major revenue sources gone, ME has still managed to maintain a thriving business climate. Their specialty in the manufacturing business has created many jobs for local residents in addition to being a major revenue source for the state.  Although farming is not a major source of income, it has not affected the state in a negative way. For those looking for a temperate area with a consistent business source in the paper goods sector, Maine may be a stable and dependable choice.

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice

In recent news, Boston, Massachusetts, has been exhibiting a high rate of economic growth. Its bustling technology industries and proliferation of universities in the area has caused this state to be one of the most rapid growing states in the country. Some urge caution however that the initial signs of growth may not be indicative of all the various areas of the state’s population.

Massachusetts has exhibited significant growth in the first quarter of 2011. According to recent census reports, the state has grown at an exorbitant rate of 4.2% overall. This far supersedes the national economic growth which was 1.8%. The state has come in at fourth highest in total per capita income increase for the early part of the year.

This rapid growth has been attributed to the proficiency of the state’s technological sector. According to reports from the 2010 New Economy Index published by Kauffman the state was ranked as one of the best positioned states for economic growth. The report took into consideration professional, managerial and technological jobs as well as foreign direct investments, worker education, IPO’s and several other factors. Massachusetts’ rapid growth has been attributed primarily to its large amount of biotech firms software and hardware companies. The universities MIT, Harvard and Boston University are just some of the schools which contribute to the state’s economic wellbeing.

Although Massachusetts has been growing at a steady rate, some feel that the majority of that growth is isolated in its technological sectors. The rest of the state may be experiencing similar hardship as the rest of the nation. Alan Clayton-Mathews, associate professor of economics and public policy at Northeastern University says “While growth in the first quarter was robust, the economy remains fragile.” It may still be too early to predict the stability of the Massachusetts economy as the majority of economic growth seems to be one sided. An editor of MassBenchmarks, a Massachusetts report stated “Underneath all these numbers I think is some striking inequality that still remains a major challenge and helps explain why many people out there aren’t experiencing the benefits of this relatively robust growth.”

Despite these warnings of caution, Massachusetts has exhibited a growth and strength in its economy that far outpaces that of the rest of the nation. Although its economic recovery is due mostly to its healthcare and technology industries, the state’s growth has been steady. In addition the unemployment rate in MA has remained significantly lower than that of the rest of the country. It was last reported at 7.8 percent in April which was down from 8% in March. However, only time will tell whether the state will be able to maintain its steady economic progression.

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice

Many states are feeling the pressures of the economic downturn and are taking measures into their own hands to fix it. This usually results in severe tax increases which impact residents the most. For the state of Illinois, recent legislature raised the level of income taxes residents will have to pay within the state significantly. These changes came about in response to massive state debt and economic decline.  The legislature was passed by a majority democratic vote as no republicans voted in favor of the new laws.

The recent tax hike in Chicago, IL has been making major headlines. The tax increase has raised the amount of individual income tax by 66 percent. Residents are worried that this increase will result in a decrease in overall spending which may further debilitate the state’s economy.  In addition businesses have been affected by recent legislature as well. Businesses in the state of Illinois will be subject to an overall tax rate increase of 46 percent. Critics of the recent changes worry that the tax raises will do more harm than good.

Patrick J. Quinn, the Illinois state governor spoke in praise of the legislature. A democrat himself, he feels this is one of the only solutions for a state that is mired in debt. Prior to raising taxes, the state was facing a fiscal emergency with an overall deficit of more than 13 billion dollars. Roughly 8 million of this amount is owed to social service agencies and others. The governor stated that “Our state was careening towards bankruptcy and fiscal insolvency.” Whether these changes will affect the economic state for the better is yet to be seen.

According to the new legislature, the income tax rate would rise from its rate of 3% up to 5%. In addition, the corporate tax rate would rise to 7% from its previous rate of 4.8%. Although these increases seem high, in comparison to the tax rate of other states, they fall within the median range.  The sudden increase is what makes the changes appear drastic to residents and media alike.

The hope is that residents of Illinois will accept the income tax increase as a concerted effort by the governor and legislators to help rid the state of its overwhelming debt. There was effort made on the part of legislators to reduce the state’s debt burden through other means. However the request to borrow $8.75 billion to help take care of the state’s unpaid bills was turned down.

In the end, the bill was overwhelmingly rejected by republicans. House representative Roger Eddy was quoted as saying “for years we’ve overspent and now we’re making it your problem.” Democrats seem to understand this sentiment but are aware that something needs to be done to remedy the situation. The bill barely passed with a vote of 60 to 57 in the House and 30 to 29 in the Senate.  This crisis should hopefully make the state aware of its overspending and the obvious need to trim spending and make budget cuts in the future.

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice

After two decades of exhibiting excellent performance, it appears that Delaware’s economy may be showing signs of depression. Although the recession officially ended in June of 2009, the state’s economy has not been showing signs of improvement. The outlook is bleak for the first fiscal quarter of the year and economists are not predicting any significant changes in the near future.

Delaware has been strong in its economic output for the past two decades, however recent reports show that the state is struggling. Unemployment rates have remained high and at last count it was still 6% below its previous rating prior to the recession. In fact the majority of its employment outlook seems to be moving in negative numbers. Excluding government jobs, the employment rate in Delaware has moved down to -5.4%. This signifies a loss of roughly 31,000 jobs. In addition, excluding government funds, personal income also declined by roughly -7.6% per capita. These numbers are grim and demonstrate that Delaware may be in need of additional federal dollars to help boost its slumping economy.

The housing market in DE is not much better than its employment status. Foreclosures and mortgage delinquencies are rampant while the prices of homes continue to remain low. In fact the sales of homes in the area are 28% lower than their previous peak rate. The climate of the real estate market in Delaware has caused a rise in personal bankruptcies registered throughout the state. Additionally, mounting personal debt has caused the majority of residents to rely on credit card spending to meet expenses creating inflation within the state’s economy.

Delaware residents are looking towards the coming year to help raise the amount of jobs and employment opportunities available to them. However the Delaware department of labor predicts a modest growth in the employment rate for the state of 0.74% over the coming year. Additionally demographics for the state show no increase in migration, a necessary stimulator of a state’s economy. Instead of new residents moving in to help boost the economy, there has been a surge in senior residents over time. This translates into less revenue spent by residents and a lower per capita income in comparison to the rest of the country.

The statistics show no projected improvement for the economy of Delaware. With a high unemployment rate and increasing senior population, the state appears to be on the decline and it may take a large concerted effort on the part of elected state officials to help rectify the situation. Restructuring the state budget for use to help attract visitors and future residents is one way to create a marked improvement. In an optimistic light, for the state of Delaware, there is nowhere else to go but up.

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice

There was much confusion surrounding recent state plans which seemed to leave union members in the dust. The plans have been revised and union members have cast their votes in favor of the new legislature which avoids significant layoffs and decreased benefits. The plan was revised due to much confusion and speculation about the previous deal the state had enacted. The union members hold out hopes that the new and improved plans will work in their favor.

In efforts to balance CT budget, a deal was proposed between unionized state employees and state officials. However the proposals fell through as it received only a 57% vote, not enough to pass it through under recent voting guidelines. There was some confusion over details of the plan and quite a bit of misinformation was circulated which caused the deal, proposed in June, to fall through. One aspect of the plan which caused union members concern was the healthcare sector. It was thought the union members would be required to join a healthcare program called SustiNet which is a universal health care program. Rosemarie Tate, a Hartford based mental healthcare worker stated that there was a lot of misinformation. Members were thinking that a wellness nutrition program was disguised as SustiNet. This has since been cleared up as no union members will be placed in the much debated program.

The new deal will help balance the $40.1 billion Connecticut state budget by providing $1.6 billion in savings. It is also set up to provide future savings through changes in areas such as employee contributions for retiree healthcare, retirement age for some employees and mandatory mail order prescriptions.

If the new proposals also fail to receive enough votes, the state will have to follow through on some drastic measure to help meet budgeting goals. Some of these measures include budget cuts as well as job cuts to total up to 6,500 jobs and thousands of layoffs. Notices have already been sent out to over 3,000 employees. The notices will be rescinded in the event that the proposals go through as planned. Tom Grodecki a supervisor with the union says that more members will vote for the deal especially since all the misconceptions surrounding it have been cleared up. He expects more than 45,000 of the union members will be in favor of the new deal.

One way or another, if the deal does not get approved, there will be thousands of layoffs and job cuts to make up for the state budget. Some of those budget cuts affected funding for substance abuse centers, vocational high schools as well as families with disabled children. Union members are grateful for a second chance to vote and are hopeful that a high vote count will push the new deal through. The results of the voting will be released this coming Thursday.

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice

Connecticut the state with the highest income in the country recently received the highest tax hike in state history. The bill was signed into effect and raised taxes by $2.6 billion dollars. Not everyone was in support of this increase in taxes claiming that it isn’t fair to make residents pay for government spending. However those in support of the recent tax legislature see it as a solution to balancing the state’s deficit without using budgeting gimmicks and spotty financing methods to do so.

The stipulations of the Connecticut tax hike raises taxes on those with an income of 50,000 or more. It also raises the tax on luxury goods to 7% such as boats over $100,000 or clothing purchases of $1000 or more. Before the legislature was passed, the state already collected close to $5000 from each resident in taxes alone. In fact the state’s residents have the highest tax burden after New York and New Jersey. The premise behind such high taxes may be that the residents can afford to pay it. The state has long been known to have the highest per capita income of any other state in the U.S.

The legislature passed through the House and the Senate but not without some criticism. Senator Andrew Roraback, a republican, was quoted as saying “We’re going to be spending more next year by taxing people.” His position stemmed from the sentiment that there are other methods of restructuring the budget that avoid overtaxing the residents to cover the needs of the state. In NY, Andrew Cuomo signed on a budgeting plan that avoided taxing millionaires to make up for the state’s deficit.  Instead the legislature closed a gap in a 10 million dollar debt without costing taxpayers a dime. This was also the case in New Jersey where republican Governor Chris Christie is pushing for legislature that allows for worker concessions and blocks levy increases while closing a $10.5 million dollar gap.

It seems that it is possible to meet the state’s debt needs without taxing residents as other states have managed to do just that. However according to supporters of the new laws, this restructuring method allows them to balance the state’s deficit without getting deeper into debt through the use of financing plans. Malloy, a democrat in support of the legislature was quoted as saying “I know it’s a tough vote [but] it’s also the right vote…the budget is balanced, honest and contains none of the gimmicks that helped us get into this mess.”

Although the tax hikes may seem exorbitant, it will help to balance a deficit that would have amounted to $6.2 billion over the next two fiscal years. The action taken now by the state has helped to prevent an even higher tax increase that would have been necessary in the future. The new legislature gives the state of Connecticut a surplus of $509.6 million at year’s end. A positive ending for the state that will hopefully bring an end to the need for any tax rises in the near future.

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice

After seeing a dismal loss in jobs during the recent recession, the state of AZ is finally showing signs of recovery. The recession officially ended in June of 2009, however signs of positive changes have been slow in coming in this desert climate. Statistics show that the economic state of Arizona is finally on the rise.

During the height of the recession, Arizona saw a total job loss of 312.000. That meant its unemployment rate was well above the national median. In addition to staggering job loss rates, other factors severely affected Arizona’s economy for the worse. One such factor is the lack of national mobility during a depressed economy. This has stalled an influx of new residents seeking homes in Arizona. This is one of the reasons cited for low population growth in the state in recent years. In addition, faltering spending at the state and local levels has caused economic growth to remain low since the recession.

Recent numbers have begun to show some promise for Arizona residents. For one thing, automobile sales have risen steadily in the past few months. An increase of 20% – 30% has been noted recently as consumers replace old and outdated vehicles. Besides the increase in auto sales, in the past six months retail sales have begun to rise into the double digits. Also on the incline are restaurant and bar sales, showing increases of up to 30%. Apparel sales have grown by 15%-20% and general merchandise sales have shown an increase of up to 10%.

The increase in spending is obviously related to the rise in jobs in recent months. Of the jobs lost during the recession, at least 23,500 have been replaced. Although not nearly half the total jobs lost have been completely restored, this surge of employment is a positive sign for Arizona residents and for the future of their economy. The total amount of unemployment insurance claims for the state remained lower than the national average. In addition, Arizona’s unemployment rate fell to 9.5% in March, down from 10.4% at the end of 2009.

Despite these positive signs, the housing market in Arizona remains on the decline. The census of 2010 found 463,000 vacant houses throughout the state. Of this amount, 180,000 are second homes and vacation homes. However despite the large amount of vacancies, the sale of homes in largely populated areas of Arizona has begun to increase. This is true for both the Phoenix and Tuscon areas of Arizona.

It will take time for the real estate market to pick up speed in Arizona just as in other areas of the nation. However the slow but steady increase in jobs portends a positive future for Arizona residents and migrants looking to move there from other states. The increase in spending among residents should further serve to stimulate the state’s economy and will hopefully symbolize an upward trend that will be continued throughout the nation.

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice