Saturday, April 22, 2006

Taxes Never Whisper

Last weekend, we sent out our federal income tax stuff. We had to pay extra this year.

A lot extra.

So I decided to sit down and figure out how much of our gross income we ended up paying in taxes in 2005. Here is the result: Federal/Other witholding [including Social Security, Medicare] + Property Tax + Estimated Sales Tax as a percentage of Gross 2005 Income = 33.7%

That's right. Over one-third of our income goes to taxes. After I calculated that percentage, I realized that I hadn't included motor fuel taxes [Texas + Fed = 38.4 cents/gallon]. There's probably a whole host of other taxes and fees I haven't considered. And that's fine. I'd rather not know.

The Texas Legislature has reconvened for the third time since the regular legislative session of 2005 to revamp our tax system for public school finance. Right now, local property taxes pick up the brunt of that burden, and middle-income homeowners like me are paying out the nose. State sales taxes [6.25%] mostly cover the rest. For the most part it's individuals, not businesses, that are paying the tab.

Our legislative heroes have been promising us property tax relief for the last 4 years. I'm hoping this time the political pressure is really on to get something done.

BTW - I'm back online after a week of no internet service at home.

4 Comments:

At 3:49 PM, April 22, 2006, Anonymous Anonymous said...

Ugh with sooo much taxes. I remembered the first time I found out about gas tax. Its a shame the stations aren't required by law to post tax info at the pump. -sleepypie

 
At 12:38 PM, April 24, 2006, Blogger Hayden Childs said...

What gets me is not the rate we pay in taxes, but how very little we buy with our investment. Our tax burden is similar to every other industrialized nation, but most other offer so much more for their dollar. Of course, they aren't busy buying unending war in the Middle East or ensuring that the dollar will have less value than the peso in 20 years.

Oh, and kudos for the clever Pavement pun in the title.

 
At 12:38 PM, April 24, 2006, Blogger -tommy said...

I just filled up my tank, yesterday, and noticed that the pay-at-the-pump receipt does not itemize the amount you paid in taxes like you see for sales tax on most other receipts. I can't recall if the tax amount is posted at the pump.

 
At 1:10 PM, April 24, 2006, Blogger -tommy said...

Hayden-

My alternate title was "Taxes is the Reason" which is equally rock-geek, if not slightly more obscure.

As for bang for the tax buck... I guess it's all about priorities. Other countries spend their war chest on social security obligations they can't afford. They got nothin' left in the kitty for kickin' ass. [cue Lee Greenwood/Toby Keith]

 

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