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Originally Posted by kutulu
You can't be serious. Take a look at your paycheck. Medicare, SS, Fed, and State add up to 13% for me and I'm probably in the top 25% for household income. Add in my property taxes and I'm at 14%. Local sales tax about 8% for non-food and something like 1-2% for food. After all of that I'm nowhere near 20%.
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Wow.
The combined rate for SS and Medicare is 7.65% for you. Your employer is forced to match that amount, or if you are self-employed, your self-employment tax is 15.3%. If you can find a way around those taxes, you will be an instant multimillionaire as a financial advisor.
Using California as an example, you will also pay a state disability tax of .6%.
Throw in state income tax of around 9%, and a rough estimate of 25% for federal (brackets run from 10% to 35%), and you're up to around 50%. Then there are property taxes, which are roughly 1% of the value of the house.
As you said there is the old 7.75% (CA) sales tax. Along with that goes:
Accounts Receivable Tax
Building Permit Tax
Capital Gains Tax
CDL license Tax
Cigarette Tax
Corporate Income Tax
Court Fines (indirect taxes)
Dog License Tax
Federal Unemployment Tax (FUTA)
Fishing License Tax
Food License Tax
Fuel permit tax
Gasoline Tax (42 cents per gallon)
Hunting License Tax
Inheritance Tax Interest expense (tax on the money)
Inventory tax IRS Interest Charges (tax on top of tax)
IRS Penalties (tax on top of tax)
Liquor Tax
Local Income Tax
Luxury Taxes
Marriage License Tax
Real Estate Tax
Septic Permit Tax
Service Charge Taxes
Road Usage Taxes (Truckers)
Recreational Vehicle Tax
Road Toll Booth Taxes
School Tax
State Unemployment Tax (SUTA)
Telephone federal excise tax
Telephone federal universal service fee tax
Telephone federal, state and local surcharge taxes
Telephone minimum usage surcharge tax
Telephone recurring and non-recurring charges tax
Telephone State and local tax
Telephone usage charge tax
Toll Bridge Taxes
Toll Tunnel Taxes
Traffic Fines (indirect taxation)
Trailer registration tax
Utility Taxes
Vehicle License Registration Tax
Vehicle Sales Tax
Watercraft registration Tax
Well Permit Tax
Workers Compensation Tax
There are also those pesky "fees" that crop up frequently. Don't forget about bond issues, either.
If you are paying a total of 20% in taxes, by any name, a great many people including myself would be very interested in hearing how you do it.
I forgot to define socialism!
Socialism:
A system of government in which everyone attempts to live at the expense of everyone else.