Where Does Your Money Go? Taxes

Written by Terry J. Rigg


Continued from page 1

The Other Guys Taxes - What do you mean "The Other Guys Taxes"? He can pay his own. For each item you buy,repparttar manufacturers and distributors have expenses likerepparttar 110345 cost of production, packaging, shipping, etc. They also have to pay taxes. Who do you think actually winds up paying these expenses? If you buy it, you do. I have seen estimates that between 20% and 25% of repparttar 110346 cost of most items is for taxes that they have to pay. To make a profit, all companies must pass all expenses they have along torepparttar 110347 consumer.

Gas Tax - With federal gasoline taxes over 18 cents per gallon and state gasoline taxes as high as 35 cents per gallon it isn't hard to see that, withrepparttar 110348 price of gas currently under a dollar in most places, over half ofrepparttar 110349 cost of your gas could be going for taxes.

Self Employment Taxes - This is simplyrepparttar 110350 way a self employed person pays their Social Security and Medicare. They are required to pay 15.3% of their gross income to cover these expenses. These arerepparttar 110351 people that really know how much taxes they pay. This is because they are required to write a check for them four times a year and, if they underpaid throughoutrepparttar 110352 year, they may have to write another check on April 15th.

When you look at your budget and wonder where all of your money is going, you may want to consider what you are paying in taxes. There are taxpayers in this country that are paying over 50% of their income in one tax or another.

Here are links to a couple of other articles I've written on taxes:

I Love That Big Tax Refund http://www.homemoneyhelp.com/taxrefund.html A 23% Federal Sales Tax!! But Wait! http://www.homemoneyhelp.com/fedsalestax.html

I'm not trying to make a political statement here. I just believe that everybody should be aware of where their money goes. If you take a few minutes to think about it, I think you will realize that a good percentage goes torepparttar 110353 federal, state and local governments.



Terry Rigg is the author of Living Within Your Means - The Easy Way http://www.homemoneyhelp.com/ebookadpage.html and editor of The FREE Budget Stretcher Newsletter and Budget Stretcher web site http://www.homemoneyhelp.com. He has 25 years of experience counseling individuals and families concerning their personal finances.


A 23% Federal Sales Tax!! But Wait!

Written by Terry J. Rigg


Continued from page 1

This list could go on and on aboutrepparttar advantages of a National Sales Tax. The truth is that our current system of taxation is totally out of control. The 10s of thousands of pages of tax laws have evenrepparttar 110344 best tax minds confused.

Yes, 23% does seem like a lot of sales tax to pay in addition to any state sales tax you might have. You could wind up paying 30% on a car purchase of $20,000. Lets look at some ofrepparttar 110345 possible savings with a sales tax.

Sales tax on car purchase - $6000 Final Cost of Car - $26000 Cost of car might be reduced 20% becauserepparttar 110346 manufacturer doesn't pay any taxes under this plan. What isrepparttar 110347 cost of repparttar 110348 car? $16000 Sales tax on car purchase - $4800 Final cost of Car - $20, 800 But Wait Again! You will be buying this car using your entire paycheck. NO DEDUCTIONS. That's hard to calculate. I can almost guarantee it will be belowrepparttar 110349 initial $20000 price tag. Besides, $20,800 is only 4% aboverepparttar 110350 price ofrepparttar 110351 car, far less than most state's sales tax.

If you don't think companies will reduce their prices even though they aren't paying taxes, just imagine an entire nation knowing they are manufacturing their goods 20% to 30% cheaper and not passing that savings on to them. In addition, sooner or later one of their competitors will reduce their price, and repparttar 110352 war is on.

To find out more aboutrepparttar 110353 National Sales Tax just visit Americans for Fair Taxation at http://fairtax.org/ Take your time to browserepparttar 110354 site. You will find answer to almost every question you might have.

Terry Rigg is the author of Living Within Your Means - The Easy Way http://www.homemoneyhelp.com/ebookadpage.html and editor of The FREE Budget Stretcher Newsletter and Budget Stretcher web site http://www.homemoneyhelp.com. He has 25 years of experience counseling individuals and families concerning their personal finances.


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