Depending on your state, $100 isn’t worth $100
New data from the Beureau of Economic Analysis presented in a digestible map thanks to the Tax Foundation shows that $100 is not the same depending on the state you live in. Some have more buying power, but if you’re in New York or California those after tax dollars are not going as far as in Alabama, Mississippi or even Texas. Spurred on by our Cash-strapped Consumer investing theme, this suggests the population migration we’ve seen is likely to continue as part of our Aging of the Population investing theme.
The Tax Foundation released a map showing the relative value of $100 in every state compared with the national average using the data from the Bureau of Economic Analysis.
“Regional price differences are strikingly large; real purchasing power is 36 percent greater in Mississippi than it is in the District of Columbia,” the Tax Foundation wrote.
“In other words, by this measure, if you have $50,000 in after-tax income in Mississippi, you would have to have after-tax earnings of $68,000 in the District of Columbia just to afford the same overall standard of living.”
Source: This map shows what $100 is really worth in your state
