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How Much Tax Do You Pay?
Posted by Andrew Riley on Feb 25th, 2008 • 847 views Clicks

It’s that time of year – it’s tax time! At least that’s what the evening news tells me. Actually, paying taxes is a pretty constant event in this country. People most often think of paying taxes as the money the government takes out of your paycheck. While that is certainly the single biggest collective lump for most of us, it doesn’t even begin to cover all taxes that you pay throughout a typical year. Here’s a partial list showing just some of the ways the government takes money from us.

  • Cigarette Tax
  • Corporate Income Tax (passed on to the consumer)
  • Dog License Tax
  • Federal Unemployment Tax (FUTA)
  • Fishing License Tax
  • Food License Tax
  • Gasoline Tax
  • Hunting License Tax
  • Inheritance Tax Interest expense (tax on the money)
  • Inventory tax IRS Interest Charges (tax on top of tax)
  • Liquor Tax
  • Local Income Tax
  • Marriage License Tax
  • Property Tax
  • Retail Sales Taxes
  • Recreational Vehicle Tax
  • Road Toll Booth Taxes
  • State Income Tax
  • Telephone federal excise tax, universal service fee, local and state surcharges, minimum usage surcharge, usage charge tax.
  • Toll Roads, Bridges, and Tunnels
  • Traffic Fines (indirect taxation)
  • Utility Taxes
  • Vehicle License Registration
  • Vehicle Sales Tax
  • Well Permit Tax

Yes, you read that last one right. You have to pay the government to dig a hole on your own land. And you’d better have a permit for that septic tank as well. Remember, every time you make a doody, the government has it’s finger in it.

Tolls, Permits, Licenses, Fines, Surcharges… these are all little taxes that we all pay every day. I call them tollgate taxes because you have to pay them to make it through life. When you add it all up, you might be surprised at just how much of your money the government takes from you.

Item Rate Notes
Federal personal income tax 17% Top 25% rate. It ranges from a credit up to well over 40%. Source
State & local income taxes 10.1% State taxes range from under 6% to over 12%. Local taxes run from zero to 2.75%. Source,  source,  source
Sales tax 8.6% Figure is the average rate. State sales taxes range up to 7% and local taxes run from zero to over 5%. Source,  source,  source
Social security & Medicaid 7.65% Total rate is actually 15.3% since half is paid by the employer, but we’re ignoring that to be kind. Source, box 1
Federal corporate income tax share 3% Based on corporate taxes being approximately 1/6 of personal taxes, and that they are paid by individuals in the final analysis. Source
Property tax 2.5% Yearly average actual costs range from under $200 in Alaska to almost $1900 in New Jersey. Source
Fuel/gasoline tax .5% Approximately 23% of the 2005 gasoline price is for federal & state taxes. The federal excise tax is 18.4 cents per gallon. Per the CPI, about 6% of the average budget is for transportation. Estimated. Source
Other 5% Includes estate tax, fees, licenses, inflation losses, inheritance, deficit allowance, gift, and others too numerous to mention. Estimated.
Drug Tax Stamp
The Government Even Has
A Tax For Illegal Drugs

Total tax percentage paid by the above average US citizen in 2005 is estimated at about 54% when you figure in all the miscellaneous taxes and fees.

Almost all the money that Americans pay in Income Tax goes to pay interest on the money that government borrows from the Federal Reserve. The Federal Reserve isn’t part of the government either. Think of it as the worlds largest credit card company and the United States is the worlds stupidest teenager with no credit limit running wild in a shopping mall.

Doesn’t it make you feel all warm inside just thinking about the four months of the year the average taxpayer works just to keep Uncle Sam from pointing a gun at you. I know it fills me with a few emotions.

Now get back to work you wage slaves! Congress needs another pay raise.
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Andrew Riley is an idealist, a dreamer, and occasionally a real son-of-a-bitch. He spends his days webmastering this blog, writing for this blog, and more importantly filling his four year old son's head with silly nonsense. He is an Army veteran, a conservative Libertarian, and gets bored with most people pretty quickly. 4 out of 5 dentists agree that he is way cooler than you.
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