Where Is Your Paycheck Going?
While many of the nation’s high net-worth individuals make much of their income through capital gains, those who still collect a paycheck are doling out of cash to the IRS every time they get paid. The same is true for all taxpayers no matter what income level they fall in. In fact, according to a recent report, American taxpayers will spend more on taxes in 2016 than some of the most basic monthly expenditures combined.
The Tax Foundation recently reported that the nation’s taxpayers would pay $3.3 trillion in federal taxes and an additional $1.6 trillion in state and local taxes this year. That is almost $5 trillion in total taxes paid, which represents 31 percent of the country’s income. To put that into perspective, Americans will pay more in taxes this year than they will for housing, clothing and food combined.
So, next time you wonder where your paycheck is going just look to the federal government, because they own about a third of it. The percentage is even higher for high net-worth individuals. Meantime, the Tax Foundation also reported that Tax Freedom Day fell on April 24 this year, one day earlier than last year. Tax Freedom Day represents how long the country, as a whole, has to work to pay off its tax debt for the entire year. So in a sense, up until this point in the year, the nation’s entire workforce has been working for free.
What Happened to California’s Tax Revenue in May?
Where has all of California’s money gone? Ok, so the state isn’t bankrupt or anything like that, but according to recent reports, the state’s tax revenues fell short by 5.5 percent in the month of May. That marks the first time in six months that California’s revenues have not reached expectations. In fact, that 5.5…
Beware the Pump: Another Gas Tax Is on the Way
If you’ve had enough with California’s high gas prices, then you might not want to keep reading, because just when you thought things couldn’t get any worse, they are about to. That’s because when 2015 rolls around California residents are going to have to pay another new gas tax. In fact it’s a double-digit hike…
Try These Five Tips For Tax Savings in 2014
Everyone loves to save on their taxes, especially since it seems like the government never runs out of ways to add to American’s tax bill. So let’s discuss some helpful tips to reduce your tax bill. Although it might be too late to implement these ideas for last year’s return – unless you file an…
As Property Values Soar In California, So Do the Tax Bills
As Property Values Soar In California, So Do the Tax Bills When it comes to taxes, sometimes it seems like if it’s not one thing, then it’s another. During the recession, when the housing market was taking a hit due to dropping property values, county tax assessors across the state actually dropped property tax bills…