Apr 26
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TAXES impact us from every direction

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 we are subjected to 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 - Uhh, it 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
  • 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

4 Responses to this incendiary article.

  1. pood51 Said on April 26th, 2008 at 1:05 am

    I can’t remember the privileges either, but I’m certain that the next group of elected representives do and will be most happy to add to them

    [Reply to this?]

  2. John 2000 Said on April 26th, 2008 at 4:06 am

    sigh…and I had been having a good day. You are always sniffing around at the facts of the matter. Don’t you know that we are supposed to be fully engaged in running around in the dense fog of a crisis-driven election year? Don’t you realize that this is a great historical (or, hysterical) opportunity to put a minority or female into the Oval Office? to CHANGE America, or whatever?

    How can you dare waste the ‘American Peoples’ time by trying to open up a dialog on the facts of taxation? “No Taxation without Representation” There is no shortage of representatives representing.

    Ron Paul has it essentially correct, but he is a pup easy to ignore. FDR, who really got this unconstitutional and never ratified income tax monster going, going, gone as well as the Social Security joke has been praised by politicians of almost all stripes.

    sigh, why do I feel so hopeless?

    John McCain, running as a ‘conservative’ in support of tax cuts knows that even if elected there will be little he can do to stop the Bush tax cuts from lapsing, interestingly timed for the post-election pre-inaugural period this Winter. Will he eventually be charged with the sin of almost presiding over the biggest tax increase in American history, if elected?

    As the list of things you cite in this blog is quite robust, I am not going to spend time looking for omissions, rather I would suggest another category such as ‘totally hidden taxes’, things like:

    money value depreciation
    massive debt servicing
    litigation servicing
    institutionalized inflation
    massive institutionalized waste
    etc

    For your reading pleasure, I highly recommend a recent book entitled Liberal Fascism (nice smiley face)

    later. love your blogs.

    [Reply to this?]

  3. Bull_67 Said on April 26th, 2008 at 8:09 am

    Great blog, well documented facts & sources, no nonsense, fun to read, keep up the good work, people are listening.

    [Reply to this?]

  4. Bud Parker Said on April 27th, 2008 at 1:15 am

    Remarkable commentary!

    Imagine how much less we would pay for nearly everything we consume if the oppressive trickle-down taxes were not imposed on the entire system of manufacturing of goods: Growers, raw materials producers, manufacturers, importers, shippers, retailers, etc. We pay lots of taxes on the taxes we pay. It is called Sales Tax.

    And The Tax Beast never gets enough. Our Federal National Debt is $9.4 Trillion. The single highest item on the Congressional Budget is interest payments on this debt. Who holds this debt? What is the interest rate? Is this intentional? More payola to SIG (special Interest Groups)?

    Two last thoughts… How does our 2008 tax burden compare to 1908? How much of the typical citizen’s income goes toward taxes?

    [Reply to this?]

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