Taxes
From Free Talk Live
The only thing that is certain is death and taxes. - Mark Twain
Contents |
Examples
A tax is a method of funding for a government. Examples of taxes include
- income tax - you pay a certain amount of the money you earn
- property tax - you pay a certain amount depending on the land property you own
- fair tax - a proposed tax that will include taxes in the cost of every item or service you pay for and give everyone in America a welfare check
Ill-defined
Libertarians are of the opinion that taxes are comparable with being mugged. One or more of the various state capitals (Yes, NY taxes NJ residents!) possibly multiple counties and local municipalities, or any mob of politicians that can figure out an entity to further impose taxes inevitably tries to do so. Common items that are taxed include:
- Income (the definition of which seems to change regularly)
- Sales (goods and physical products, though legislation is pending in some states and passed in others to include digital items)
- Services
- Fees (Most libertarians agree that "user fees" regardless of how absurd, are a tax unless it can be avoided and it is unarguably dedicated)
- DMV
- Hunting and Fishing Licenses
- Gun Licenses (which violate the 2nd Amendment
Hidden Taxes
Some taxes are "hidden" from view by being included into purchase prices or renamed to appear more accepting.
- Mislabeled "insurance" -- social security, unemployment, disability, etc. are taxes.
- Inflation is a hidden tax on assets. If you put $100 in your wallet in 1970 and left it there til today, it's purchasing power declined 95%. You have paid a 95$ tax. It has the interesting effect that it escalates other taxes. You pay high real estate taxes on inflated property values. You pay higher estate taxes on the inflated assets in your portfolio when you die.
- Regulation is a hidden tax. Every business makes you pay more to cover the added costs. It can also mean certain goods and services are unavailable at any price.
- Estate taxes are hidden. You get stuck after your dead. And, everyone talks about inheritances coming to the beneficiary "tax free". The estate must pay a fortune in taxes and "fees".
- Cost of compliance is a hidden tax.
- The opportunity cost of all this is a hidden tax.
- Some even refer to lotteries as an "Idiot Tax"
Only individuals pay taxes
A common misconception is that companies pay the lions share of the US tax burden. Sadly this misconception is entirely false.
Companies merely markup their prices to cover the cost of taxes that the company pays. So, the price in the market place is the true economic cost and a large lump of accumulated taxes. The problems is that we can not differentiate the dividing line. So, if anyone says, including the hosts of FTL, that they pay X per cent, then you should quibble because no one can know exactly how much they pay as it's nearly impossible to calculate though conservative estimates place the figure at 45-55% of the average Americans income.
