Friday, March 20, 2009

Tax Questions

Which president gave the biggest tax cuts for the rich -- Reagan or Bush?

If there's an imposition of a property tax on your land, who pays the tax?

Which worker receives the higher pay: a worker on a road construction project moving dirt with a shovel or a worker moving dirt atop a giant earthmover?

These are some of the questions Walter Williams ask in in column this week. Walter Williams is a professor at Gorge Mason University and his syndicated column is one that I read weekly and definitely one of my favorite. I seem to learn so much by reading his column every week. He goes on to answer those questions at the top and has this to say about America's Prosperity.

"It's not rocket science to conclude that whatever lowers the cost of capital formation enables workers to have more capital to work with and enjoy higher wages. Policies that raise the cost of capital formation such as capital gains taxes, low depreciation allowances and high corporate income taxes, and thereby reducing capital formation, serves neither the interests of workers, investors nor consumers."

He also gives an example:

Taxes also reduce transactions. I need my computer repaired. You and I agree that the job is worth $200. Suppose there's the imposition of a 30 percent income tax on you. That means you would net only $140 and might refuse the job. You might suggest that if I were willing to pay you $285 you would do the job because at that price your after-tax earnings will be $200 -- what doing the job is worth to you. There's a problem. The repair job was worth $200 to me, not $285. So it's my turn to say the heck with it, or would we and society be better off if you and I agreed to the repair job but did not tell anybody? I'd say yes, but we'd be criminals.

Taxes are out of hand and the more we get taxed the harder it is for anyone to gain wealth. Here is list of some of the taxes we American's pay.

Accounts Receivable Tax
Building Permit Tax
Capital Gains Tax
CDL license Tax
Cigarette Tax
Corporate Income Tax
Court Fines (indirect taxes)
Deficit spending
Dog License Tax
Federal Income Tax
Federal Unemployment Tax (FUTA)
Fishing License Tax
Food License Tax
Fuel permit tax
Gasoline Tax
Hunting License Tax
Inheritance Tax Interest expense (tax on the money)
Inventory tax IRS Interest Charges (tax on top of tax)
IRS Penalties (tax on top of tax)
Liquor Tax
Local Income Tax
Luxury Taxes
Marriage License Tax
Medicare Tax
Property Tax
Real Estate Tax
Septic Permit Tax
Service Charge Taxes
Social Security Tax
Road Usage Taxes (Truckers)
Sales Taxes
Recreational Vehicle Tax
Road Toll Booth Taxes
School Tax
State Income Tax
State Unemployment Tax (SUTA)
Telephone federal excise tax
Telephone federal universal service fee tax
Telephone federal, state and local surcharge taxes
Telephone minimum usage surcharge tax
Telephone recurring and non-recurring charges tax
Telephone state and local tax
Telephone usage charge tax
Toll Bridge Taxes
Toll Tunnel Taxes
Traffic Fines (indirect taxation)
Trailer Registration Tax
Utility Taxes
Vehicle License Registration Tax
Vehicle Sales Tax
Watercraft Registration Tax
Well Permit Tax
Workers Compensation Tax

Total tax percentage paid by the average US citizen in 2005 is estimated at about 54% when you figure in all the miscellaneous taxes and fees.

I understand that we have to have taxes and I pay mine every year but we need to have more accountability in Washington for the turkeys who are spending our hard earned money and making everyone of us poorer as individuals and as a country. And we need to each have accountability for our own money and not depend on the government so much. Have a great weekend!

1 comment:

  1. I disagree about the traffic fines, IRS Penalties and Deficit spending being a part of our taxes.

    It did bring up a question in my mind though, when doing my taxes the software asked me if I wanted to estimate my sales tax paid, to use that instead of the Std Deduction. So it seems you can't just add all these taxes to your income tax rate and get a total %.

    Other than that the article you link to is very interesting to read. Its written in plain language and the examples make it easy to understand.