United States has highest "effective" tax rate in the world !

U.S. Typical family of 4, income $75,000 (including benefits)

Direct taxes:

Social Security tax -- $4650
Local and state income tax - $6884 – (year 2005)
Federal income tax - $8850 Source:

online.wsj.com...

Property tax - $4000
Sales tax - $2000
Motor vehicle taxes (driver license,excise, tags, title) - $200
Tobacco taxes - $300
Alcohol taxes - $50
Toll tag fees - $100
Capital gains tax - $1000
Inheritance tax - $0
Professional License fee - $1000
Fuel tax - $300 (est 750 gallons/year)
Hotel tax - $50
Retirement early withdrawal tax - $0
State Park - $0

Subtotal: $24734 – 32.9%

Indirect taxes (Raise cost of goods or services):
Employer portion of social security - $4650
Inflation loss on savings - $10,000 (based on $100,000 savings in U.S. Dollars). Source:

www.shadowstats.com...

Cost health insurance - $10,000/year (paid by taxes in other industrialized countries)
College - $10,000/year (paid by taxes in some other industrialized countries)
Transportation (included due to lack of subsidized mass transit in U.S.) - $5000/year (includes yearly cost of maintaining car)

Subtotal $0 to $44650 = 0 to 59.5% indirect tax rate.

Total tax percentage (when tax benefits are compared to other industrialized countries): 32.9 to 92.4% effective rate.

When other household expenses are added, this “typical” family is actually going in debt at a rapid rate.

Income:75,000
Direct taxes: $24,734
Indirect taxes: $20,000 (estimated)
Food: $9000
Housing (not including taxes): $ 15,000
Clothing: $5000
Miscellaneous: $15000

Total expenses: $88734

The above information puts a new perspective on “low” U.S. Tax rates as compared to other countries:

en.wikipedia.org...

I'm sure I forgot to list a lot of different taxes in the above scenario. Maybe somebody can complete the list (or refute the items listed).

Originally posted by qver74
U.S. Typical family of 4, income $75,000 (including benefits)

Direct taxes:

Social Security tax -- $4650
Local and state income tax - $6884 – (year 2005)
Federal income tax - $8850 Source:

online.wsj.com...

Property tax - $4000
Sales tax - $2000
Motor vehicle taxes (driver license,excise, tags, title) - $200
Tobacco taxes - $300
Alcohol taxes - $50
Toll tag fees - $100
Capital gains tax - $1000
Inheritance tax - $0
Professional License fee - $1000
Fuel tax - $300 (est 750 gallons/year)
Hotel tax - $50
Retirement early withdrawal tax - $0
State Park - $0

Subtotal: $24734 – 32.9%

Indirect taxes (Raise cost of goods or services):
Employer portion of social security - $4650
Inflation loss on savings - $10,000 (based on $100,000 savings in U.S. Dollars). Source:

www.shadowstats.com...

Cost health insurance - $10,000/year (paid by taxes in other industrialized countries)
College - $10,000/year (paid by taxes in some other industrialized countries)
Transportation (included due to lack of subsidized mass transit in U.S.) - $5000/year (includes yearly cost of maintaining car)

Subtotal $0 to $44650 = 0 to 59.5% indirect tax rate.

Total tax percentage (when tax benefits are compared to other industrialized countries): 32.9 to 92.4% effective rate.

When other household expenses are added, this “typical” family is actually going in debt at a rapid rate.

Income:75,000
Direct taxes: $24,734
Indirect taxes: $20,000 (estimated)
Food: $9000
Housing (not including taxes): $ 15,000
Clothing: $5000
Miscellaneous: $15000

Total expenses: $88734

The above information puts a new perspective on “low” U.S. Tax rates as compared to other countries:

en.wikipedia.org...

I'm sure I forgot to list a lot of different taxes in the above scenario. Maybe somebody can complete the list (or refute the items listed).

I don't know about the highest tax rate in the world, but if you consider that the dollar is one of the top currencies, I'd agree that in the US, a lot of "wealth" is taken from people incomes and purchases, compared to other countries.

But a lot of those taxes don't affect a lot of people. Cigarette tax? Does the median household smoke that much? I'd have to look at the numbers, but $4,000 for property tax? That seems a bit off, especially with the housing downturn. Everyone I know has reevaluated their taxes, and are paying a lot lower. I did mine and they got cut in half.

I think you need to review your figures.

How do you get to "The highest effective tax rate in the world"?

None of your links substantiate that as a fact.

reply to post by qver74


on a tax oppression table there are other countries above the us... italy comes in at top followed by turkey, poland, mexico, germany, netherlands, belgium, hungary, france, greece, the uk and then the us...

so really if you are in the us i would not complain too much

Originally posted by purplemer
reply to post by qver74

 

on a tax oppression table there are other countries above the us... italy comes in at top followed by turkey, poland, mexico, germany, netherlands, belgium, hungary, france, greece, the uk and then the us...

so really if you are in the us i would not complain too much

All of the countries you listed have a national health insurance paid by their taxes. Most have a subsidized higher education system also, paid for by their taxes. It is true that their "official" tax rates are higher, but citizens in most of these countries receive much more in return for their taxes.