According to the latest U.S. census figures, the 2009 median household income in California is significantly higher than Texas…
CA — $58,931
TX — $48,259
But, ADJUSTED FOR THE COST OF LIVING, the Texas median household income is significantly higher than California…
TX — $53,009
CA — $44,456
http://en.wikipedia.org/wiki/Household_income_in_the_United_States#Median_income


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The original headline on this cogent posting was confusing because I had it backwards. But the text and figures were all correct.
Fixed the headline. Mission accomplished.
I wonder what costs are factored into the cost of living adjustment. I’ll bet I could find a few more that make the metric even more lopsided in favor of Texas. Of course the same can be said for most states that are actively seeking to increase things like employment and living standard for people other than government employees and labor unions: TX, SC, GA, LA, MS, AR, OK, ND, et al
I’m sure the biggest SINGLE cost is the housing cost. CA is exceptionally high, in large part because of restrictive land use couple with massive regulatory and “fee” costs which drive up the price of housing.
It takes YEARS to get clearance to build a subdivision in CA. It takes months in Texas, and only weeks in some other states such as Missouri.
Payroll taxes, state income taxes, environmental compliance’s, workman’s comp, licensing and permit fees of all shapes and sizes, gas prices endured for shipping are but a few things that gets passed on to the consumers and simultaneously gets taken out of workers pay checks.