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With tax time upon us, a question about kinds of taxes we pay? |
After searching the net this morning and not finding what I'm looking for, decided to venture over here, see if there is someone who can give me a bonafide answer, not some trivial whoop-de-do answer. That's a tough one. Those "incidental" taxes actually depend on where you live. I think, though, that what you're asking about is a "Sales and Use Tax." Items taxed can vary from state to state. For example, NH doesn't have a sales tax. It does, however, have a Meals & Rental tax of 8%. In MA, clothing and food are not taxed, but there's also a Meal tax of 5%. Some items of clothing aren't considered clothing for tax purposes. Your employer pays a payroll tax on your earnings, which is subtracted from your earnings. Taxes are everywhere and taxes are assessed on the federal, state and local level. One thing people don't notice is gasoline taxes. Almost half of the cost of a gallon of gasoline is federal taxes. Of course there's sales tax on almost everything you buy, anywhere. And there's property/school/hospital district/municipal utility/etc. taxes that you must pay if you own a home. One of the most insidious is travel taxes - in most cities you will pay a tax of almost 20% when you stay in a hotel or rent a car. One tax which burns my a&& is Franchise Taxes on your utility or cable bills. This goes to your city or burg and entitles them to a portion of what you pay each month. |
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