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Pasadena is an Anti-Inflation Haven
22 Jul 2022
Inflation is impacting everything from gasoline and groceries to manufacturing parts and housing. Businesses are seeing their cost of goods soar and consumers are paying for it at the checkout stand and in their monthly bills, raising the question for many about how they can save money. Moving a business or residence to Pasadena could be the answer!
Reports indicated inflation was 9.1% in June, a staggering rate not seen since the 1980s. According to the U.S. Bureau of Labor, real average hourly earnings for all employees decreased by 1% and the Consumer Price Index for All Urban Consumers increased by 1.3%. More alarming is the decrease in real average earnings year over year. From June 2021 to June 2022, they decreased by 3.6%.
Pasadena offers anti-inflation advantages.
Several economic factors favor relocating a business or residence to Pasadena:
#1 Lower your personal taxes by moving to Pasadena.
Being in Texas, Pasadena residents do not pay individual income taxes. As a result, Texas residents have the country’s sixth-lowest state and local tax burden! As a result, a family makes more each paycheck, even if their salary doesn’t go up. The best part of this strategy is that it continues to yield dividends year after year. Even when inflation calms down, people in Texas will still benefit from having lower taxes.
#2 Reduce corporate taxes by bringing your businesses to Pasadena
CNBC recently ranked Texas as the #5 state for business in 2022, citing significant reasons as an attractive workforce, access to capital, technology, and innovation. Texas offers many tax advantages for businesses, beginning with no corporate income. Texas’s combined state and average local sales tax rate is 8.2%. As a result, the Tax Foundation ranked Texas as the 14th-best state in its 2022 State Business Tax Climate Index.
#3 Lower your cost of living in Pasadena.
Residents enjoy a lower cost of living in Pasadena compared to much of the country, meaning families can afford more when they live in Pasadena. In the first quarter of 2022, Pasadena’s overall cost of living was nearly 10% lower than the national average, according to Salary.com. By comparison, residing in Dallas would result in a 6% increase while Austin, TX, would be nearly an 11% increase! Pasadena’s housing costs are 14% less than the national average, while energy is 13% less, transportation is 12% less and food is 9% less!
#4 Pasadena offers incentives for new business and business expansion.
When businesses move to or expand in Pasadena, they can qualify for various state and local financial incentives to help either finance the project or help to reduce the cost through grants and tax credits. For example, Texas incentives include the Texas Enterprise Fund, Skills Development Fund and Manufacturing Sales Tax Exemption. Locally, incentives like the Business Enhancement Program is a matching grant initiative of the Pasadena Economic Development Corporation (PEDC) to help businesses complete enhancement and improvement projects.
#5 Sites and buildings are very affordable in Pasadena
Commercial, industrial and residential real estate is affordable compared to other regional communities. Interested individuals can search for buildings and properties here, while area real estate agencies can be found on the PEDC website.
Don’t miss the opportunity to save money and combat inflation by moving to Pasadena.
As inflation makes its presence felt more than it has in 40 years, there are ways to save money by moving a business or residence to Pasadena. While moving does take time and energy, the long-term financial benefits are worth the investment. Contact the PEDC Marketing Manager Julianne Echavarria to learn more about the benefits of locating to Pasadena and for help with relocation.