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Name: King David Caul
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TAXES impact us from every direction (Why we can't save any money pt. 2)

You're taxed when you earn your money. You're taxed when you enjoy your earnings. You're taxed when you invest your earnings. You're taxed when you own or attempt to own property. You're taxed when you purchase mandatory licenses. You're taxed when you pay for necessary utilities. You're taxed when you die.

And our Tax codes are FUN, aren't they? To be prosecuted or fined for not following tax laws that are too complex for common men to comprehend is fascinating. Send me to jail for breaking laws that are effectively designed for me not to be able to understand?

I don't think it's uncommon; many of us make a decent wage, and we live a modest lifestyle, but we fall into debt sooner than we rise into wealth. So what's the problem? Perhaps we suffer a delusion concerning what we make and what our dollars can purchase. Well, we're supposed to. Many of our taxes are well hidden. Many are truly supposed to be. After a genuine evaluation of our tax burdens, our purchases simply do not cost what we think they cost - and we don't earn what we think we earn.

I invite and request responses which correct or support any examples I assert, or otherwise set me straight!

Let's begin with some painfully obvious taxes:

  • Federal income tax (lots of variables, maybe zero, probably about 15%, maybe 28%+)
  • Social Security/payroll tax. (For most 7.65% on earnings. Self-employed pay 14.1 %. Employers match the individual rate; with decreased wages likely compensating)
  • State income tax (range from zero in 9 states to above 8% in 7 states)
  • Local income taxes (there are a few, from zero to 2.75%)
  • Corporate tax (Qualified personal services corporations at flat rate of 35%)

Then, there are some more unavoidable taxes:

  • Utilities. (water, gas, electricity, and ESPECIALLY telecommunications have significant taxation attached. Telephone federal excise tax, universal service fee tax, surcharge taxes. Telephone minimum usage surcharge tax, recurring and non-recurring charges tax, usage charge tax. Telephone state and local tax , and surcharge taxes - Can really add up)
  • Transportation (Auto sales tax, locality permits, Vehicle License Registration Tax, hidden excise taxes, Road Toll Booth Taxes , Toll Bridge Taxes , Toll Tunnel Taxes, public transportation surcharges)
  • Petrol - Gasoline Tax (Washington has the highest gas tax 36 cents / gallon. Federal gas tax was 18.4 cents per gallon)
  • Groceries. (state sales taxes, some pay little, some not so little)
  • Living in a home (property taxes; And they don't go away - They don't stop)
  • Death tax (The last laugh!)

And the routine and unrelenting SALES TAX (with a wide range; generally 4-8%, 5 states relieving citizens of the burden. Up to 10.25% in Cook Co, IL, 11.5% in Nevada). Gets us everyday in minor or major ways:

  • clothes
  • computers
  • Liquor Tax
  • cigarettes
  • indulgences
  • day-to-day needs, etc

Documentation/Permission taxes - licenses & permits taxes:

  • building permit
  • Dog License
  • Fishing License
  • hunting License
  • Trailer Registration
  • Watercraft Registration
  • Marriage License
  • Food License
  • Septic Permit
  • Well Permit
  • CDL license
  • Fuel permit
  • Corporation License
  • Amusements License
  • Alcoholic beverages manufacturer/sale License

Yet MORE additional taxes that might not come up, but we may well encounter them;

  • Hotel stay (up to 17%!)
  • Car Rental Taxes (average 8.24%)
  • Airline Ticket Taxes (8+% with additional flat fees per domestic segment and often a significant per person passenger facility charge )
  • Gift tax (begins at 18% and rise to 50%)
  • windfall gains ( lottery etc)
  • personal property tax (targeting cars, boats, aircraft, artwork, etc)
  • Recreational Vehicle Tax
  • sports
  • entertainment
  • mortgage
  • investments
  • Capital Gains / dividend
  • social security income ( if above total income thresholds of $25000 single or $32000 joint filing)
  • Inheritance
  • Federal excise taxes (motor fuels, tires, telephone usage, tobacco products, and alcoholic beverages, firearms, shells & cartridges)
  • Insurance Premium Taxes
  • IRS Penalties (tax on top of tax)
  • Luxury Taxes
  • Service Charge Taxes
  • School Tax
  • Vaccination Taxes

Some INDIRECT and/or HIDDEN taxes:

  • Lost interest on mandatory preemptive seizure of projected income tax obligation (if you pay income taxes, this likely includes you)
  • Shipping of the goods we use and buy.
  • property taxes on factory and warehousing
  • Workers Compensation Tax
  • Federal Unemployment Tax (FUTA)
  • Road Usage Taxes (Truckers)
  • yield taxes on timber cutting, etc
  • Severance Taxes on natural resources (from oil and gas to turpentine and timber)
  • import taxes (from garments to bicycles to strawberries)
  • Accounts Receivable Tax
  • State Unemployment Tax (SUTA)
  • Inventory tax IRS Interest Charges

It would be awfully hard to put a total amount or percentage to our taxation relative to our income. It is of course dependent on in which state you live, and the types of choices you make, the size of your household, etc... But it is safe to say, an enormous portion of our reward for hard work goes to taxation. Perhaps this would be satisfactory if we felt that we received excellent services in return; this would be rather debatable I suspect.

Help me out, I need assistance discovering and uncovering (or remembering) the taxes we enjoy. Point out the privileges I'm forgetting, please.

 

©2008 king david caul

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The Two REAL Reasons Small-town America is SO Bitter!

1. They are perceived and considered to be unimaginative, rather dumb, easily manipulated, and unsophisticated in the resistance to political trickery.

2. They are being taxed into the ground wherever they turn.

Solutions:

to #1: stop TELLING small-town America what they want, and who they are, and promise to LISTEN to them!

For example, if small-town Pennsylvania residents want to... say... undo the chaos of massive and ever-growing illegal immigration -- don't tell them WHY they are being erroneous, but instead RESPECT their desire for REPRESENTATION, by taking actions against illegal immigration!

to #2: Don't promise programs and sweeping federal agencies and the like; Promise instead to repeal as many crushing taxation disincentives as possible. Give us back the rights to our money!

.

©2008 king david caul

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