Everyone is taxed too much.
When we talk about taxes, most of us think about income taxes. It is the tax people love to grip about.
Truth be told, when you look at who pays income taxes, the average Joe pays the least. National Taxpayers Union:
For Tax Year 2006
|
Percentiles Ranked by AGI |
AGI Threshold on Percentiles |
Percentage of Federal Personal Income Tax Paid |
|
Top 1% |
$388,806 |
39.89 |
|
Top 5% |
$153,542 |
60.14 |
|
Top 10% |
$108,904 |
70.79 |
|
Top 25% |
$64,702 |
86.27 |
|
Top 50% |
$31,987 |
97.01 |
|
Bottom 50% |
<$31,987 |
2.99 |
|
Note: AGI is Adjusted Gross Income |
||
Those dollars from our paychecks hurt, even though the wealthier folks are paying more. It’s the other taxes, the sneakier ones, that really take a bite out of us.
Payroll taxes. You pay 7.65% of your wages to Social Security. Your employer does the same. What does that 15.3% of your wages get you? Nothing. Your social security payments are not based on what you pay in to the program. Your boss has to raise prices to cover the amount he kicks in. And, as we all know, despite our payments, the Social Security system will run out of money in the next couple of decades.
Sales taxes.
Here in Rochester, the sales tax is 8%. That is not the highest rate in New York State. The counties and municipalities, as well as the state of New York, rely on sales tax revenues. The kicker is that sales taxes cost you more and when you cut back buying, the governments lose revenues so they have to raise taxes in other places.
Real Estate and Personal Property Taxes
If you own things, if you have been able to afford to buy land, or a car or whatever, a government somewhere wants to tax you on it. If you rent, your rent is higher because of the landlord’s real estate taxes. If you buy anything, your cost is higher because of personal property taxes paid by businesses.
Corporate Taxes and Fees
Businesses of all sizes are subject to an astounding number of taxes, licenses and fess set on them by governments. You pay those. Don’t imagine you don’t. Every dollar a business pays in taxes, licenses and fees is passed on to its customers in higher prices.
Sin Taxes
The psychotic nature of government has resulted in a variety of “sin” taxes. The Federal Government supports tobacco farmers with a variety of programs, and then taxes cigarettes dollars a pack. The cost of your evening cocktail is about double what it would be if there were no government taxes on alcoholic beverages. And then the government turns around and funds program after program to get you to quit drinking or smoking.
Beginning to get the idea? Taxes raise prices for everyone. You pay taxes every day, whether you pay income tax or not.
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