According to a 2005 Runzheimer analysis, people working in the New York City area will experience the most significant tax burden. As an example, a family of four with an annual income of $75,000 can expect to forfeit an average of $19,099, or 25.5% of total income, annually toward taxes after all personal exemptions and allowable deductions have been considered (see Table).

Other high tax areas include Cleveland, OH, where the average suburban family pays $18,679 in taxes, or 24.9% of income; Bergen County, NJ with a tax burden of $19,082, or 25.4%; and Chicago, IL, at $19,094, or 25.5% of total income.

In contrast, areas that had the lowest tax burden include Honolulu, HI, with a tax liability of $10,546, or 14.1%; Casper, Wyoming, with $12,647, or 16.9%; and Anchorage, Alaska with $13,030, or 17.4%. The lack of state income tax for both Wyoming and Alaska contribute to the fact that these states remain less affected by tax burdens.

Comparing the same tax burdens from 2005 to 2006 using Runzheimer International data indicates that there may be hope on the horizon for those who prefer to keep their hard earned dollars in their pockets, as opposed to forwarding that money on to Uncle Sam. On average, the percentage of tax dollars has decreased by an average of $484, or 3% among the selected cities in this study between 2005 and 2006. The cities that were impacted the most in the last year were Bergen County, NJ with a decrease of $2,133, or 12.6%, and Kansas City, KS with a decreased tax burden of $699, or 4.1% in total income.

In the above table, tax liability has been determined for a homeowner. A 2,500 square foot home with approximately 4 bedrooms, 2.5 bathrooms, and 8 total rooms is used in all locations. Mortgage costs are based on a 20% down payment and 6.25% interest for 30 years. Areas researched are suburban communities surrounding each of the metropolitan areas where families earning $75,000 annual income reside.

Real Estate Tax: Each community’s real estate taxing formula, based on rate of assessment and percent of market value subject to assessment, has been applied to a 2,500 square foot, 4 bedroom, 2.5 bath home in the selected cities listed above.

Sales Tax: Based upon the same volume of identical goods and services purchased annually by a family of four with an annual income of $75,000. The cost of these goods and services will vary by location. Both state and local sales taxes have been calculated.

Federal Tax: Federal tax is based upon the most current tax formulas. A passive income and miscellaneous deduction amount are used in our calculation. Passive income is from savings interest, dividends, capital gains, etc. The total amount of passive income for our example is $4,409. The miscellaneous amount for deductions is for charitable contributions and financing expenses. The miscellaneous income amount used in this example is $1,749. Other deductions are for the mortgage interest, real estate taxes, state and local tax and ad valorem taxes allowed under current federal law. Taxes were calculated twice. First, using itemized deductions and second, using standard deductions. The results are the calculations with the most favorable liability to the taxpayer.

According to Jay Romano of the New York Times, psychologists say that relocation is the third most stressful event that a human being can endure, only surpassed by the death of a loved one and divorce. So imagine taking that third most stressful event and compounding it with the insecurities that relocation to a high-cost area can bring. Relocations to high-cost areas are receiving more attention these days due to employee reluctance to accept the move. In fact, eighty percent of companies surveyed are currently experiencing resistance from employees being asked to move to high-cost areas according to the Runzheimer Benchmarking Service, “Relocation to High-Cost Areas” survey. The top three reasons that employees are resistant to move to high-cost areas are their fear of reduced living standards, lack of funds for conventional down payment and their fear of not making ends meet. Runzheimer International has addressed a number of these concerns with services such as the Runzheimer Benchmarking Service and Relocation Advisor, a financial consulting service that can help remove transferee uncertainty about their financial situation in the post-move location.

The most frequently cited metropolitan areas that organizations consider high cost and, therefore, offer special benefits are: San Francisco, San Jose, New York, Los Angeles and San Diego. If your organization moves people to these high-cost areas or others, participating in the “Relocation to High-Cost Areas” survey may assist you in identifying ways to alter your organization's practices for these areas to address your employees’ needs and make the relocation a success.

In 2005, Phoenix, AZ experienced their hottest housing market ever. Homes were appreciating as much as 40% per year in some areas. It was a seller’s market and homes were selling fast. Based on the first three months of the year, however, the housing market of 2006 will be vastly different.

Phoenix’s housing market has flipped from a seller’s market to a buyer’s market. The market started leveling off in October of 2005 and the appreciation of homes has slowed to a current rate of 10-14% per year. Last July, homes were selling within days and for more than their list price. Now many homes are overpriced and therefore not selling. The market is flooded with homes for sale. According to one source, resale listings exceeded 30,000 in January. These sellers are still hoping to cash in on the hot market of last year. Unfortunately, they will have to settle for longer listing times (more than a month) and lower selling prices (fair market price).

Compared to what the market was like before 2005, the sellers are not truly settling. The market has not crashed and the bubble has not popped. It has simply reverted back to a more “normal” housing market. Prior to the 2005 boom, homes in Phoenix were appreciating 8-15% per year for most of 2004.

The healthy slowdown of the market is allowing sellers to maintain a decent profit while also allowing buyers more affordability. According to a recent article in the Arizona Republic written by Glen Creno and Jonathan Higuera, the Phoenix housing market has had a long-standing reputation for affordability; however, now the median price of homes is higher than the national median for both new and existing homes. So, although the boom of 2005 is over, it looks like the market of 2006 will be favorable for both sellers and buyers.

Rising childcare costs continue to affect families throughout the United States. Runzheimer International took a look at the expense of full-time daycare for a two-year-old child. The daycare rates are based on a monthly expenditure for a child who utilizes daycare 5 days per week, approximately 8 hours per day. Full-time daycare rates vary depending on location. The average rate for full-time daycare in the U.S. is $611.43. Cities that are on the highest end, exceeding $1,000 monthly, are Boston and New York City. Rates for these cities are $1006.94 and $1,088.33, respectively. San Juan, PR, San Antonio, TX, and Jackson, MS are among the most affordable locations with rates of $232.41, $356.67, and $375.56, respectively.

Runzheimer International also tracks the cost of hourly babysitting rates for many locations. Babysitting rates are based on an average hourly rate for the supervision of one four-year-old child in the pre-midnight evening hours. These rates presume that a teenager will be present in the home of the child during the babysitting timeframe. The average rate in the U.S. is $6.04 per hour. The most profitable locations for babysitters are Manchester, NH and New York City, making a generous $10.00 and $11.08 per hour, respectively. By contrast, the babysitters in Portland, OR and Casper, WY make a modest $2.90 and $3.08, respectively.

Comparing full-time daycare rates from 2004 to 2005, the percentage of increase is 5.61%. Similarly, the increase for hourly babysitting rates from 2004 to 2005 was 4.68%.

* Daycare and babysitting rates are based on Runzheimer International data from September, 2005.

Spring is here indeed, and what does that mean? Well, tulips aren’t the only things blooming, spring activities are in full bloom as well. In light of the warm weather, Runzheimer International took a look at the costs for activities that are typically associated with the warming climate.

If your New Year’s resolution didn’t get you in the gym, then maybe the thought of wearing a Speedo or a yellow polka dot bikini will! Now that summer is just around the corner, many people are running off to the gym to get that body they have always dreamed of. Costs related to health club memberships have a large range from $252 to $1,166 annually, depending on location. The best deals on a gym membership are in San Antonio, TX and Memphis, TN where you only have to spend $252 or $330, respectively, for an annual health club membership. The average price tag for an annual health club membership in the U.S. as of September, 2005, is $563, according to Runzheimer International goods and services data. This price includes the amount for annual dues and fees for existing members.

Another place that people are flocking to is the golf course! What better way to spend a beautiful spring day? As can be expected, costs for greens fees have a wide variance also. In fact, depending on where you are swinging the irons, the cost differential can be as significant as $113. You can find the most reasonable greens fees in Louisville, KY and Jackson, MS. Meanwhile, expect to pay more for 18 holes in cities such as San Juan, PR, San Francisco, CA, and San Diego, CA.

Perhaps spring cleaning isn’t your thing. That’s okay; just hire a housekeeper! In places such as San Juan and Jackson, MS, this may be a good idea. Corresponding costs for these areas are $13.06 and $14.00, respectively. However, if you live in Baltimore, Albuquerque, or Denver, you will probably want to consider cleaning your own castle. *Housekeeping costs associated with these areas are $31.53, $33.72, and $34.46, respectively.

*Housekeeping services include the following: bathroom(s): sanitize walls, floor, counter tops, bathtub, stool; kitchen: sanitize walls, counter tops, cabinets, appliances; living room/dining room: dust, polish furniture, and vacuum; bedrooms: polish furniture, vacuum.