Family: Where Does Your Money Go? Taxes

Where Does Your Money Go? Taxes

Written by Terry J. Rigg

Trying to stay within repparttar

theme of Budget Stretcher, I thought a series of articles on knowing where your money is going may help some of you understand just how much you pay on certain expenses.

I've decided to start this series of articles with information about repparttar 110345 amount and type of taxes you pay. I won't be able to cover all of repparttar 110346 types of taxes that are paid by Americans because that would turn this article into a book. I'm just going to list a few of repparttar 110347 most common taxes that most of us have to pay.

How much do you pay in taxes every year? I can bet many of you don't have any idea. You may think you can just look at your tax forms for last year and have repparttar 110348 answer. I guarantee that would be just repparttar 110349 beginning.

Just take a look at repparttar 110350 below list of various taxes and do repparttar 110351 math yourself:

Federal Income Taxes - Uncle Sam is currently taking between 15% and 39% of our Adjusted Gross Income to pay for what ever it is that they spend money on in Washington. The main point I want to make here is that many people feel that because they received a refund, they didn't pay any taxes. For some people, this is true. However, repparttar 110352 vast majority of people that receive a refund are just getting back repparttar 110353 money they already paid in through withholding, minus repparttar 110354 taxes they owed. HOW MUCH DID YOU PAY LAST YEAR?

Income Tax Preparation - Yes, I consider repparttar 110355 cost of having our taxes prepared by a professional as a tax. If repparttar 110356 federal tax code was published in english, maybe more of us could prepare our own taxes.

Social Security - 15.3% of your income goes directly to repparttar 110357 federal government for social security and medicare and is conveniently deducted from your paycheck. The myth about your employer paying half is just that. If you weren't required to pay social security, that is another 7.65% that your employer could pay you.

Sales Taxes - Unless you live in a state that doesn't have a state sales tax, this costs you around 6% to 7% of every penny you spend. Wouldn't it be nice to buy something for $99.95, hand repparttar 110358 clerk a $100 bill and get a nickle back.

Property Taxes and Real Estate Taxes - These taxes can run into repparttar 110359 thousands of dollars a year. I know, there are some places you aren't required to pay these taxes either, however, you can bet they get this money in other ways. Before you renters start smiling, remember that your landlord has to pay these taxes. Want to guess where he gets repparttar 110360 money?

A 23% Federal Sales Tax!! But Wait!

Written by Terry J. Rigg

We are so used to having our federal income tax, social security and medicare taxes withheld from our paycheck, most of us don't realize there are efforts to change this dramatically. There is a group going around saying that we should pay 23 cents on every dollar we spend in a federal sales tax. They must be crazy!

Wait a minute. If we are going to pay a sales tax to cover our income and social security tax, we won't have anything except our state and local taxes coming out of our pay. Even that doesn't add up to 23%. What are they talking about?

What if they told you that, not only would you not have federal and social security taxes withheld from your paycheck, you would see repparttar following things happen:

~Elimination of repparttar 110344 Internal Revenue Service, saving an estimated $420 billion annually ~April 15th would be just another day ~You would not have tax records to keep BECAUSE YOU WOULD NOT HAVE TO FILE INCOME TAXES ~And, no forms, no deadlines, no prepayments, no penalties, no audits, and never again an abusive IRS that can claim your assets without due process! ~Even illegal income would be taxed when it is spent ~Only new items will be taxed ~No American will pay taxes on necessities ~Cost of goods and service are estimated to decrease by 20% to 30% because manufactures and other companies will not be required to pay taxes (TAXES WILL ONLY BE PAID ON NEW MERCHANDISE AT THE RETAIL LEVEL) ~No tax on ANY investments ~Each taxpayer will receive a rebate equal to repparttar 110345 taxes paid on necessities such as groceries and medicine, in advance of those purchases ~Seniors and low income families would be protected

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