No state tax, but some of the counties are high or maybe I’m just whiny. Soon we’ll be moving to Henry county with fewer taxes but high property taxes compared to Lincoln county.
Property Tax, Excise Tax, Sales Tax and use taxes are the most regressive forms of taxation. You pay them through recessions, joblessness and they tax the lower paid at much higher relative rates.
Total taxation in this country is approaching 50% when you count embedded taxes.... the ones you never see. Certain taxes are called fee... for example the FCC "auctions" off radio wavelengths they "regulate". First in a scientific world the FCC provides neither wavelengths nor the apparatus to control them... but that's for another thread... those billions of dollars are passed on to you in your phone bill... your cable bill... your internet bill... just about every business you interact with (they pass it through to you) and so on. Transportation taxes at the federal and state level.... you pay a tax for the truck with the watermelons coming from the field... again you pay for them to be moved from the sorting packaging facility to the regional warehouse... again you pay to move them from the warehouse to the local distribution center.... then again to the grocery store. Now, overlay that with everything you consume and how many times the base goods are transported by air, rail and truck. You pay for the fuel tax in each of those as well.
All totaled the total is about 49.5% on average for everyone. This isn't using the marginal rates on your taxes but the actual rates. For those who don't know the difference the marginal rages are complete BS. The are also known as "Brackets". 10%, 15%, 20% etc.... no one ever pays the marginal rates of your income. You pay taxes based on "taxable income". So while I'm in the a higher bracket based on my negotiated salary.... after deductions I'm in a lower one. So that 49.5% number is AFTER that's taken into account. So, all income tax at the Federal level for everyone paying is around 29.5% paid in.... for those under $1.5M in annual income it's about 16.7%. The rest is State, Local, Sales, embedded taxes, fees and excise taxes.
Here's the total "Revenue" (love that they take a term from commerce to describe taxation) for all government entities in the US.
Now, here just Income Tax.
Just for fun.... let's look at this same data going back to 1910
Total "Revenue"
Income Taxes.
Let's look at how well they manage spending with that massive change in taxation... umm... well here's the debt curve over that same time period.
So, not only are they taxing us at ever increasing rates they are also spending massively more than they tax.
But we're much better off because all of this money grows the economy.... right?
Well... here's how we tax in relation to growth.... we tax more and more of GDP
Here's the same % of GDP graph broken down by State (blue), Local (red), federal (green) and social insurance taxes (grey).
The GDP this graph is based on is flawed. If you calculate GDP as we did prior to 1980 we're at 52% or so of GDP based on those calculations.
Now ask yourself if you believe there is THIS much more good that government does?
They get you to play the envy game by blathering about marginal rates and who's getting away with what while they tax you out of existence with things you have no idea about and they will never talk about.