Quote:
Originally Posted by Bikemike
Another CSA-pair I always notice is Denver-San Diego. Similar populations, similar per-capita and household earnings, but for some reason Denver scores much higher here.
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It doesn't "score" higher, it just pays more in federal taxes, and this reveals the flaw in this methodology. Higher cost of living areas will have lower tax liability due to homeowner friendly tax policy. Things like mortgage interest deduction and property tax deduction can add up. The IE and Phoenix also have similar demographics and income but Phoenix ends up paying more in federal income tax.