IP 5 Essay Example | Topics and Well Written Essays - 750 words

IP 5 - Essay Example 2. The second position is in Maryland, earning $65,000 per year. You found a starter duplex that you can purchase with an assessed value of $135,000. Property taxes average 2.4% of the assessed value. The state sales tax rate is 1% higher than in Pennsylvania, and it also applies to food and clothing. Marylands state income tax rate is 1.5% higher than Pennsylvanias. With the data above, complete the following table, with all values rounded to the nearest cent. Note that the Difference column is the difference between Pennsylvania’s and Maryland’s values. (Hint: Property tax only applies to housing; state sales tax only applies to purchases and food and clothing, when applicable; and income tax only applies to the salary.) The difference in cost of living between the two locations (Maryland and Pennsylvania) based on the differences in sales tax, income tax, and property tax is $3,033.75. In other words, I have to pay an additional $3,033.75 in taxes in Maryland as compared to Pennsylvania. This does not much influence which job to choose, as the difference in taxes (sales tax, income tax, and property tax) of $3,033.75 is much less as compared to the difference in salary $15,000 between the two