How much tax do we really pay?
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Printed Date: Dec 22 2024 at 9:52pm
Topic: How much tax do we really pay?
Posted By: Middletown News
Subject: How much tax do we really pay?
Date Posted: Jun 28 2012 at 3:16pm
Item | Rate | Notes |
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Federal personal income tax | 17% (2011 est. - 18.2%) | Top 25% rate. It ranges from a credit up to well over 40%. http://www.taxfoundation.org/publications/show/250.html - Source | State & local income taxes | 10.1% (2009 - 10.6%) | State taxes range from under 6% to over 12%. Local taxes run from zero to 2.75%. http://www.retirementliving.com/RLtaxburdens.html - Source , http://www.retirementliving.com/RLtaxes.html - source , http://www.taxfoundation.org/taxdata/topic/36.html - source , http://www.taxfoundation.org/publications/show/2181.html - 2009 source | Sales tax | 9.7% (2009 - 10.3%) | Figure is the average rate. State sales taxes range up to 8% and local taxes run from zero to over 5%. http://www.taxfoundation.org/taxdata/topic/36.html - source , http://thestc.com/STrates.stm - source , http://www.vertexinc.com/AboutVertex/NewsAndPress/022205_ratereport.asp - source , http://www.retirementliving.com/tax_burden_2008.pdf - 2008 source , http://www.taxfoundation.org/publications/show/2181.html - 2009 source | Social security & Medicaid | 7.65% | Total rate is actually 15.3% since half is paid by the employer, but we're ignoring that to be kind and to avoid being accused of being too political. http://www.cbo.gov/showdoc.cfm?index=3213&sequence=2 - Source, box 1 | Federal corporate income tax share | 3% | Based on corporate taxes being approximately 1/6 of personal taxes, and that they are paid by individuals in the final analysis. http://www.osjspm.org/101_taxes.htm#14 - Source | Property tax | 2.5% (2007 - 2.7%) | Yearly average actual costs range from under $200 in Alaska to almost $1900 in New Jersey. http://money.cnn.com/pf/features/lists/taxesbystate2005/index.html - Source | Fuel/gasoline tax | .5% (2009 est. - .6%) | Approximately 23% of the 2005 gasoline price is for federal & state taxes. The federal excise tax is 18.4 cents per gallon. Per the CPI, about 6% of the average budget is for transportation. Estimated. 2010 estimate, $.45 per gallon average. http://www.eia.doe.gov/pub/oil_gas/petroleum/analysis_publications/primer_on_gasoline_prices/html/petbro.html - Source | Other | 5% (2009 est. - 7%) | Includes estate tax, fees, licenses, inflation losses, inheritance, deficit allowance, gift, and others too numerous to mention. Estimated. |
Total tax percentage paid by the above average US citizen, 2005 - 54.4%Total tax percentage paid by the above average US citizen, 2009 est. - 57.7%
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Replies:
Posted By: Middletown News
Date Posted: Jun 28 2012 at 3:19pm
The http://www.washingtontimes.com/topics/supreme-court/ - high court ’s ruling leaves in place 21 tax increases in the health-care law costing more than $675 billion over the next 10 years, according to the House http://www.washingtontimes.com/topics/ways-and-means-committee/ - Ways and Means Committee . Of those, 12 tax hikes would affect families earning less than $250,000 per year, the panel said, including a “Cadillac tax” on high-cost insurance plans, a tax on insurance providers, and an excise tax on medical device manufacturers. “This is a clear violation of the president’s pledge to avoid tax hikes on low- and middle-income taxpayers,” said a statement from the panel, which is chaired by Rep. Dave Camp, Michigan Republican.
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Posted By: Middletown News
Date Posted: Jun 28 2012 at 3:21pm
You do realize they set the taxes in Obamacare to take effect AFTER the election, that was done on purpose so Obama wouldn't have to defend his bill against some very angry people, and when americans not paying attention start noticing these taxes next year, it will be too late. Also Bush tax cuts expire January 1st as well, So the lowest bracket would go from 10% of their income to 15% of their income. that is an income tax hike of 50% on the poor. January 1st is taxmageddon.
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Posted By: Bocephus
Date Posted: Jun 28 2012 at 4:38pm
Jonathan Haller wrote:
You do realize they set the taxes in Obamacare to take effect AFTER the election, that was done on purpose so Obama wouldn't have to defend his bill against some very angry people, and when americans not paying attention start noticing these taxes next year, it will be too late. Also Bush tax cuts expire January 1st as well, So the lowest bracket would go from 10% of their income to 15% of their income. that is an income tax hike of 50% on the poor. January 1st is taxmageddon.
| Thats the problem people dont pay attention most people dont have a clue what obama has done to this country in 3 and a half years.If he gets re elected he will have no restraints from turning us into a socialist mecca too bad no one seems to care.
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Posted By: VietVet
Date Posted: Jun 28 2012 at 6:32pm
Yep. I would imagine that if you stuck this information in front of the vast majority of working middle and lower class people, they would either not understand the ramifications of what has been presented or would ignore the severity of this taxation as it affects their standard of living. The ONLY thing that the working class people react to, is that bottom line bring home amount on the paycheck and whether they can meet their weekly bills, rent/house payment, truck payment and have enough left over to buy some beer that night....and make it until the next paycheck when they do it all over again. If the tax cuts end and Obamacare taxes more, there will be less in the old bring home. THEN, they will notice and react......maybe.
Most don't care what the politicians do, be it local, state or fed level UNLESS, what they do reduces that paycheck amount each week. And that's a big problem as it allows clowns who run things to remain in office, counting on societies indifference to do as they please with no resistance. Classic example of it happening here in this town. How do you get people mad enough to react in force to demand change or get thrown out of office?
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Posted By: squeemy
Date Posted: Jul 02 2012 at 12:02pm
Most folks just want everyone to pay their fair share. Romney tanked in SC primary when it was revealed he paid less that 14% on $21 million in income.
Employees bear a disproportionate share of the tax burden compared to corporations.
1. U.S. companies in total pay a smaller percentage of taxes than the lowest-income 20% of Americans.
Total corporate http://thinkprogress.org/economy/2012/01/05/398311/corporate-profits-rebound-tax-revenue/ - profits for 2011 were $1.97 trillion. Corporations paid $181 billion in http://www.taxpolicycenter.org/taxfacts/displayafact.cfm?Docid=203 - federal taxes (9%) and $40 billion in http://www.census.gov/govs/statetax/ - state taxes (2%), for a total tax burden of 11%. The poorest 20% of American citizens http://ctj.org/ctjreports/2012/04/who_pays_taxes_in_america.php - pay 17.4% in federal, state, and local taxes. 2. The high-profit, tax-avoiding tech industry was built on publicly-funded research.
The technology sector has been more dependent on government research
and development than any other industry. The U.S. government https://download.nap.edu/catalog.php?record_id=6323 - provided
about half of the funding for basic research in technology and
communications well into the 1980s. Even today, federal grants support
about 60 percent of http://www.aau.edu/WorkArea/DownloadAsset.aspx?id=11588 - research performed at universities.
IBM was founded in 1911, Hewlett-Packard in 1947, Intel in 1968,
Microsoft in 1975, Apple and Oracle in 1977, Cisco in 1984. All relied
on government and military innovations. The more recently incorporated
Google, which started in 1996, grew out of the Defense Department's
ARPANET system and the National Science Foundation's Digital Library
Initiative.
The combined 2011 federal tax payment for the eight companies was just 10.6%.
3. The sales tax on a quadrillion dollars of financial sales is ZERO.
The Bank for International Settlements http://jutiagroup.com/20080724-global-derivatives-market-now-valued-at-114-quadrillion/ - reported in 2008 that total annual derivatives trades were $1.14 quadrillion. The same year, the Chicago Mercantile Exchange http://www.wikinvest.com/stock/CME_Group_%28CME%29/Cme_Group_Inc_Reports_Strong_Full-year_Revenues_Net - reported a trading volume of $1.2 quadrillion.
A quadrillion dollars is the entire world economy, 12 times over.
It's enough to give 3 million dollars to every person in the United
States. But in a sense it's not real money. Most of it is high-volume
nanosecond computer trading, the type that almost crashed our economy.
So it's a good candidate for a tiny sales tax. But there is no sales
tax.
Go out and buy shoes or an iPhone and you pay up to a 10% sales tax.
But walk over to Wall Street and buy a million dollar high-risk credit
default swap and pay 0%.
4. Many Americans get just a penny on the dollar.
- For every dollar of http://arc.org/downloads/2009_race_recession_0909.pdf - NON-HOME wealth owned by white families, people of color have only one cent.
- For every dollar the richest .1% earned in 1980, they've added http://wweek.com/portland/article-17350-9_things_the_rich_dont_want_you_to_know_about_taxes.html - three more dollars . The poorest 90% have added one cent.
- For every dollar of http://www.levyinstitute.org/pubs/wp_589.pdf - financial securities (e.g., bonds) in the U.S., the bottom 90% of Americans have a penny and a half's worth.
- For every dollar of http://payupnow.org/rankings/index.htm - 2008-2010 profits from Boeing, DuPont, Wells Fargo, Verizon, General Electric, and Dow Chemicals, the American public got a penny in taxes.
5. Our society allows one man or one family to possess enough money to feed EVERY hungry person on earth.
The United Nations http://www.fao.org/newsroom/en/news/2008/1000853/index.html - estimates that $30 billion is needed to eradicate hunger. http://www.forbes.com/billionaires/ - Several individuals have more than this amount in personal wealth.
There are http://www.fao.org/docrep/013/i1683e/i1683e.pdf - 925 million people in the world with insufficient food. According to the http://www.un.org/Pubs/ourlives/wfp.htm - World Food Program , it takes about $100 a year to feed a human being. That's $92 billion, about equal to the fortune of the six http://www.vanityfair.com/politics/2012/05/joseph-stiglitz-the-price-on-inequality - Wal-Mart heirs .
One Final Outrage...
In 2007 a hedge fund manager ( http://books.google.com/books/about/Billionaires_Ball.html?id=I4_HY0QmTp0C - John Paulson )
conspired with a financial company (Goldman Sachs) to create packages
of risky subprime mortgages, so that in anticipation of a housing crash
he could use other people's money to bet against his personally designed
sure-to-fail financial instruments. His successful gamble paid him $3.7
billion. Three years later he made another $5 billion, which in the
real world would have been enough to pay the salaries of 100,000 health
care workers.
As an added insult to middle-class taxpayers, the tax rate on most of
Paulson's income was just 15%. As a double insult, he may have paid http://wweek.com/portland/article-17350-9_things_the_rich_dont_want_you_to_know_about_taxes.html - no tax
at all, since hedge fund profits can be deferred indefinitely. As a
triple insult, some of his payoff came from the middle-class taxpayers
themselves, who bailed out the company (AIG) that had to pay off his
bets.
And the people we elect to protect our interests are unable or unwilling to do anything about it.
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Posted By: Bocephus
Date Posted: Jul 02 2012 at 1:32pm
Tax and spend I guess thats the answer just ask Europe
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Posted By: squeemy
Date Posted: Jul 02 2012 at 1:46pm
OK - I just did. My co-worker from Switzerland is here in the US for the next month. The Swiss health care system is very similar to the Affordable Care Act - each citizen is required to buy insurance.
Switzerland seems to be doing very nicely. Low debt, high wages, great educational system and very little spent on warfare, weapons and prisons. He says thanks for asking.
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Posted By: Bill
Date Posted: Jul 02 2012 at 2:10pm
Bo, I'm not sure that Europe's problems are necessarily the taxing and spending. It may be for some like Spain, Italy and Greece. But we know a large problem for Greece is that they have a poor system of tax collection and enforcement. That may be problem #1 along with no major industries other than tourism. Not sure about the issues in Spain and Italy.
How would you explain the fairly strong economies of France, Switz., Germany, Denmark, Holland, and the Scandanavian countries? Most of them are "high tax" as well.
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Posted By: Chris Fiora
Date Posted: Jul 03 2012 at 11:05am
Actually you need to compare the standard of living in each country to make an apt comparison. One way to do this is to compare the GDP per capita. There are many sites on the web that show this comparison. What you will find is that, in general, the higher taxed countries with more social programs have a lower standard of living. For example, in 2011 the US had a per capita income of $48,387 while, France had $35,156, Switz had $43,370, Germany had $37,897, Denmark had $37,152. Spain and Italy were very low at $30,600. Greece is incredably low at $26,300. Not only is low taxes and high freedom the morally right thing to do, but it results in a higher standard of living for the country's citizens. The economist Milton Freedman figured this out years ago and published his arguments in a great book called "Free to Choose". In my opinion, Europe is not a place that we want to emulate unless we want to significantly lower our standard of living.
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Posted By: Bocephus
Date Posted: Jul 03 2012 at 11:53am
squeemy wrote:
OK - I just did. My co-worker from Switzerland is here in the US for the next month. The Swiss health care system is very similar to the Affordable Care Act - each citizen is required to buy insurance.
Switzerland seems to be doing very nicely. Low debt, high wages, great educational system and very little spent on warfare, weapons and prisons. He says thanks for asking.
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Yeap ok so Switzerland and a few other European Countries have it under control but do you think that The US going the socialist path at this point is gonna save us? I don't
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Posted By: John Beagle
Date Posted: Jul 03 2012 at 11:54am
Chris Fiora wrote:
Actually you need to compare the standard of living in each country to make an apt comparison. One way to do this is to compare the GDP per capita. There are many sites on the web that show this comparison. What you will find is that, in general, the higher taxed countries with more social programs have a lower standard of living. For example, in 2011 the US had a per capita income of $48,387 while, France had $35,156, Switz had $43,370, Germany had $37,897, Denmark had $37,152. Spain and Italy were very low at $30,600. Greece is incredably low at $26,300. Not only is low taxes and high freedom the morally right thing to do, but it results in a higher standard of living for the country's citizens. The economist Milton Freedman figured this out years ago and published his arguments in a great book called "Free to Choose". In my opinion, Europe is not a place that we want to emulate unless we want to significantly lower our standard of living. |
Good points. Thanks for sharing.
------------- http://www.johnbeagle.com/" rel="nofollow - John Beagle
Middletown USA
News of, for and by the people of Middletown, Ohio.
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Posted By: Chris Fiora
Date Posted: Jul 03 2012 at 12:57pm
Bocephus,I actually think just the opposite. The data show that the more we emulate Europe and move down the socialist path the worse our standard of living is going to be. I'd like to see our country go in the opposite direction toward lower taxes and more freedom. I'd like a better standard of living for all. Switzerland is doing well, at number 8 on the list of per capita GDP, but the US is doing much better (about 12% better). .
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Posted By: squeemy
Date Posted: Jul 03 2012 at 3:12pm
Per capita GDP is an aggregate measurement of an entire nations output per person, not an indication of individual household tax burden and offers no indication of how GDP is distributed.
If total production and wages is the new thread here then the 80% increase in productivity from 1979 to 2009 and the paltry 10% rise in household income over the same period (almost all of which occurred between 1996-2002) better indicates the real problem: wage earners are not participating in the GDP per capita increase - corporations are enjoying the increase in productivity while wages have remained flat - and to add insult to injury - corporate America has also successfully shifted their tax burden to wage earners.
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Posted By: Bill
Date Posted: Jul 03 2012 at 3:24pm
I've often wished I was born as a corporation not a person!
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Posted By: Bocephus
Date Posted: Jul 03 2012 at 8:18pm
squeemy wrote:
Per capita GDP is an aggregate measurement of an entire nations output per person, not an indication of individual household tax burden and offers no indication of how GDP is distributed.
If total production and wages is the new thread here then the 80% increase in productivity from 1979 to 2009 and the paltry 10% rise in household income over the same period (almost all of which occurred between 1996-2002) better indicates the real problem: wage earners are not participating in the GDP per capita increase - corporations are enjoying the increase in productivity while wages have remained flat - and to add insult to injury - corporate America has also successfully shifted their tax burden to wage earners.
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And the corrupt president and congress spends it faster then we peons can shovel it to them so whos fault is that the coporations,the government or us peons that keep voting these politicians into power that spend it like drunken sailors ? Can you say apathy ?
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