A Taxing Existence

A Taxing Existence

A few taxes we may be subject to paying in the US:

Types of Taxes by Level:

• Federal Taxes:

  • Individual Income Tax: A progressive tax on wages, salaries, and other income.

  • Payroll Tax (FICA): Funds Social Security (6.2% for employee/employer) and Medicare (1.45% for employee/employer).

  • Capital Gains Tax: Tax on profits from the sale of assets (investments).

  • Estate Tax: A tax on the transfer of property upon death.

  • Excise Tax: Taxes on specific goods like gasoline, tobacco, and alcohol.

• State and Local Taxes:

  • State Income Tax: Levied by most states on personal income, though rates vary.

  • Sales Tax: A percentage added to retail goods and some services, varying by locality.

  • Property Tax: Primarily funds local services like schools and police based on the value of land and buildings.

  • Inheritance Tax: Levied by a few states on inherited assets.

  • Local Income/Payroll Taxes: Some cities or counties impose additional income taxes.

• Other Taxes:

  • Self-Employment Tax: Covers both employer and employee portions of FICA for contractors.

  • Gift Tax: Tax on transfers of money or property to others.

  • Sin/Luxury Taxes: Specialized excise taxes on specific goods.

I could go on. But my point is that it is not the amount of taxes that burdens us all, it is their cause: Out-of-control government spending which leads to both debt servicing and a desperate need to fund the bureaucracy and the boondoggles. This includes government largesse. There's a nonprofit nearby and its cause is estimable; caring for the homeless (“unhoused” is another worthless euphemism. However, their top four officers receive at total of $500,000 annually. The California high speed rail project was originally estimated at $33 billion, is now at $128+ billion, and has been moved from a projected 2020 completion to 2030-33.

Until we demand spending be reduced, taxes and debt will inevitably increase. This is not a partisan issue. Everyone is “guilty.”