Is Your State Rich? You Might Be Surprised. $100 Can Go Far In Some Places.
It’s no secret that the cost of living is higher in New York than it is in Kansas. The thinking is that wages are higher in New York, so of course things cost more. Technically, yes this is true, but the side effect is that higher taxes follow higher wages.
Those high taxes combined with high prices for goods and services create a problem for New Yorkers. Even though on paper they’re making more money than people in other parts of the country, their money is less valuable.
Meaning for example, when measured against the national average $100 in New York will only get you $86 worth of goods and services. Whereas in Kansas $100 measured against the national average will get you $111 worth of stuff. That $25 difference could be a entire meal (or two).
New Yorkers: this is what you’re losing by living in a more expensive state.
To illustrate this trend, the non-partisan Tax Foundation released a chart detailing the real purchasing power of $100 in each state after adjusting for average income, taxes, and cost of living. The results show that we might have to re-evaluate which states we think of as being rich or poor. Check it out.
Crazy right? California isn’t much better than New York. $100 there is really only worth $88, but in Mississippi $100 is worth $115.
Here’s a chart illustrating the average income difference between New York and Kansas both in real dollars, then in purchasing power. It’s shocking.
(H/T: Tax Foundation)
Look like it’s time I moved out to Kansas. You can check out the Tax Foundation’s full report here. Share this story with your friends on Facebook and see if $100 is worth more in their home state.
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