by D.P. "Bracken" Bracken
Do you actually, really, truly, positively know how much you pay in taxes every year? What if that amount was much greater than you presently believe? Read on to find out a simple way to calculate a more realistic estimate of your annual federal tax burden.
First, we must address a common misconception held by the vast majority of individuals in this country. The misconception is that businesses or corporations pay a large portion of tax.
Nothing could be further from the truth! Businesses only collect taxes from us, the consumers, by way of higher prices.
Study after study has shown that federal taxes today increase the cost of all products and services by between 20-35 percent - the so-called "hidden tax". State and local government taxes further raise that share to between 38-48 percent.
Keep in mind, these taxes are paid by all consumers and are in addition to the almost 35 percent tax rate most families pay in income and payroll taxes already.
Now, get some paper and something to write with and do this simple exercise:
- Write down your last year's before tax income.
- Subtract how much you paid in taxes.
- Next, subtract your total savings (410k, savings, etc.) The remainder should be what you spent last year.
- Now, multiply that amount by 25% (the approximate hidden tax in everything).
- Last, add that figure to the amount you thought was the total you paid in taxes from #2 above.
Example:
- Joe A. Citizen made $50,000 last year.
- He paid $5,000 in taxes.
- Joe saved $5,000 in his 401k.
- Twenty-five percent of the remaining $40,000 that he spent is $10,000 (the hidden tax)
- Added to the visible tax paid, Joe now sees his federal tax paid is $15,000, not $5,000, as he previously believed.
But remember, this does not even take into consideration state and local taxes, fees, property taxes, etc. Figure in those taxes and it's enough to make anyone ill!
Being sick will not accomplish anything, though. It's time to get MAD! When we become outraged enough over this injustice we will insist something be done about it.
Only when people learn the true cost of a bloated and inefficient government and how they have been fooled into paying invisible taxes on every purchase, will they become angry enough to demand a change.
Consider it our duty - you and I - to educate the public, and those who represent us in government, regarding how much we really pay in taxes!!
Now, what does all of this have to do with the proposed national retail sales tax (NRST)? Plenty! Under a NRST businesses are not taxed. This eliminates the necessity of passing those costs along to the consumer.
But, will prices go down? In answer to that we ask, "Are businesses competitive?" Think about it. At the very least with a national retail sales tax you will be able to see how much you are truly paying in taxes with every purchase made.
Don't you think it's time to change to a tax system that reflects the true cost of government? A tax system that is simple, fair, and most of all...visible to all. So do we!
Find out
more by contacting Citizens for an Alternative Tax
System (CATS) at 1-800-767-7577 or visit their web site at www.cats.org or call the CATS Las
Vegas Chapter at (702) 454-5736.
CATS is a national
grassroots, non-profit organization committed to
bringing about the end of the income tax and the IRS
by replacing both with a national retail sales tax
(NRST).
Become a member of a group of like-minded
citizens who are tired of this insane tax system and
demand real change from our elected representatives
in Washington, D.C. Join CATS now!!
© 2001 by D.P. "Bracken" Bracken
(Permission to copy in all or part and distribute freely as long as credit is given to author and Citizens for an Alternative Tax System.)
