Tax?

[LarryUK]

What is 'sales tax' that I read about, plus 'local taxes'? In the UK we have VAT at 20% on luxury goods.

What is the US tax system? Is it localised or national? Both?

[kidblast]

What is 'sales tax' that I read about, plus 'local taxes'? In the UK we have VAT at 20% on luxury goods.

What is the US tax system? Is it localised or national? Both?

 

 

we have a federal income tax (aka: national), plus many states have s state income tax (aka local) not all states have this, but it's made up for in other areas, like higher property taxes.

 

Social security tax as well.

 

We have sales taxes on just about everything except for most foods and clothing.

 

Gas is taxed quite a bit, cigarettes and alcohol as well.

 

there's other annoying taxes like the Excise Tax which was supposed to be temporary during WWII, but once the war was over, yea,, the taxes increased.

It's used today for "supposedly" fundning infrastructure programs, (roads bridges..etc) taking a drive around my town, makes ya wonder what they are doing with that money too.

 

 

a lot of the internet purchases are not subject to sales taxes in my state (Mass.) but it's only a matter of time

[LarryUK]

What percentages are they? I'll happily swop the USA 'gas' tax for the UK one. We pay about $2 a litre, $9 a gallon and about $6 is tax. We then pay 'car tax' on every car. It's supposed to go for the roads (like yours), but clearly doesn't.

We've got a nice new tax this year. It's a tax on extensions, loft conversions or conservatories etc on your house. They must all have a dept to think them up!

[Guest Farnsbarns]

A rule of thumb here is that we keep about 2p in the pound of what we earn. After you pay income tax and national insurance you're at about 40%. Then nearly everything you buy has VAT at 20% but that doesn't end there, the price you pay includes the taxes the seller pays and his costs, much of which will be wages, more tax is paid on that. Then there are duties on fuel, including gas, oil and electricity, duties on sugar, duties on tobacco and alcohol, tea, coffee etc etc etc etc. Car tax (for new car purchases) which, don't kid yourself, has an effect on used car prices. Road fund license (what many call car tax), company car tax, tax on parking spaces owned by companies. It goes on and on. As I say, you actually get about 2p in the pound.

 

Here's a little thing. Parking meters are illegal because you pay VAT but get no VAT receipt. This applies to lots of things.Ever paid to use a toilet at a train station? RailTrack are charging you VAT but not offering a receipt, that's illegal too. Anything you pay for that includes VAT is illegal unless a VAT receipt is offered at the point of sale which makes almost any payment for an abstract item or service which is automated illegal.

 

Oh, and last time I looked, which was quite a while ago, most state's sales taxes were at about 6%.

[kidblast]

A rule of thumb here is that we keep about 2p in the pound of what we earn. After you pay income tax and national insurance you're at about 40%. Then nearly everything you buy has VAT at 20% but that doesn't end there, the price you pay includes the taxes the seller pays and his costs, much of which will be wages, more tax is paid on that. Then there are duties on fuel, including gas, oil and electricity, duties on sugar, duties on tobacco and alcohol, tea, coffee etc etc etc etc. Car tax (for new car purchases) which, don't kid yourself, has an effect on used car prices. Road fund license (what many call car tax), company car tax, tax on parking spaces owned by companies. It goes on and on. As I say, you actually get about 2p in the pound.

 

Here's a little thing. Parking meters are illegal because you pay VAT but get no VAT receipt. This applies to lots of things.Ever paid to use a toilet at a train station? RailTrack are charging you VAT but not offering a receipt, that's illegal too. Anything you pay for that includes VAT is illegal unless a VAT receipt is offered at the point of sale which makes almost any payment for an abstract item or service which is automated illegal.

 

Oh, and last time I looked, which was quite a while ago, most state's sales taxes were at about 6%.

 

 

that's still the case for state taxes here across the pond.

 

most people who are lucky enough to have a job, and maybe two incomes, pay around 35% of they're gross pay in taxes, and it's climbing yearly due to more social programs, namely gov. provided health care. So it's going to start to get a lot worse around here for people who are pulling the wagons.

[Twang Gang]

What is 'sales tax' that I read about, plus 'local taxes'? In the UK we have VAT at 20% on luxury goods.

What is the US tax system? Is it localised or national? Both?

 

Sales taxes are applied to anything you buy. But it depends on where you are in the US how much it might be. I am in Illinois, and there is a state sales tax which I believe is about 6%. So you buy a Les Paul for $2000 you pay $2,120. Then there may be a county tax which is added on, and even a city tax could be added. Any jurisdiction can levy a tax. These taxes are in addition to federal excise taxes. So yes there are both local and national taxes added to any purchase. Things people are addicted to (alcohol and tobacco) get taxed very heavily by everyone because they know people won't stop buying them so a good way to raise money. In the county where I live tobacco is up to about $10 tax per pound.

[RowdyMoon]

Tax is the huge percentage you give outa your paycheck to help fund government programs that they have to cut because they used up the money on supplying everyone in office with new boats and $200 dollar a day lunch budget.....whew..glad I got that off my chest lol

[milod]

Okay...

 

Forget various federal taxes on income, goods and services. And state income taxes. And state and/or local taxes on property. And state taxes on various goods for various reasons - tobacco because it's evil and gasoline to pay for state highways.

 

"Sales" taxes are levied at state and local levels. They're something of a low level of a VAT on goods and services.

 

Usually there's a state "sales tax" that is a given percentage of the price of an item. Then there is usually added to that one or more "local" sales taxes used in theory for local government revenue. Often sales of goods and services tending toward tourists are added to the mix.

 

For example, and this is just hypothetical, a $100 item has a 5 percent state sales tax and a 3 percent local sales tax, bringing the consumer's cost of that item to $108. But a $100 hotel room may have that 5 percent sales tax, 3 percent local sales tax, plus a 10 percent "hospitality" tax, taking the actual cost of renting that room up to $118.

 

In the U.S. many states have agreed to a common mode of city and state sales taxes in hopes that a national system of taxing "remote" sales, such as through the internet, might be enacted. Ain't happened yet. It does get more complex in that states where a given "mail order" company has "nexus," defined as a local business presence, almost certainly will have to charge that state's batch of sales taxes.

 

However, I think operations such as America's "Musicians Friend" is potentially crossing the line in that it offers to pay the sales tax of residents of California, where it has nexus, which functions as nearly a 10 percent discount to residents in that state compared to residents elsewhere.

 

It does get to be rather amusing. It's also a factor that the U.S. is a huge business and population base compared to the UK, Oz or Canada where national taxes are somewhat easier to push through a parliamentary system.

 

OTOH, I think we're all in the same boat of "denial" in most cases that we're working for pennies on the pound or dollar and "government" manages to keep its bureaucracies happy with their side of it.

 

Worse, nobody believes in Robin Hood any more, it tends to be the Sheriff of Nottingham who is the modern hero in our media culture.

 

And that makes kinda an interesting commentary, I think.

 

m

[T Bone]

Sales taxes in the USA are generally State imposed, but sometimes also locally (County or City). There is no Federal Sales Tax (yet...).

 

My home State of Michigan has a 6% Sales tax (plus income tax around 5.5% I think). Here in Florida where I am currently working, Sales tax is 7% Sales tax (with ZERO income tax). Of course both have property taxes on owned real estate. A vehicle purchase in either is subject to the sales tax mentioned above (so if you pay $20K for a vehicle, prepare to cough up an additional $1200 to $1500 when initially registering it, in addition to registration fees).

 

WRT guitars, etc. I buy a lot mail order. If I buy from Guitar Center, they charge Sales Tax for an item shipped to any State in which they have a retail facility. If I buy from their other arm (Musician's Friend), they do not collect Sales Tax in most places, as they essentially do not have a retail facility (I've heard of one or two I think). Guess which one I give preference to? Let's say I buy a $1000 guitar. I can either pay an additional $60-$70 for Sales Tax, or not, depending on where I buy.

 

Note: Just because they don't collect it, doesn't mean you are not supposed to pay Sales tax for mail order purchases. At least some States say you are, and are supposed to voluntarily send them the money. Thing is, they have no record of the sale, and there are no assets of the retailer in the Sate for them to seize, so essentially no one pays it. This is a "problem" in the view of the Government bodies that feel they are being cheated, and there are various efforts afoot to combat it. Short of the Feds stepping in (which would most likely require a percentage for them as well, and an agency to administer it of course), there is not a huge chance for success. Score one for "the little guy", we can still save some bucks when making purchases.

 

Example, I just bought a 2012 Fender American Standard Stratocaster from Hello Music for $849 (less $5 for my first time purchase, a fantastic deal!) and had I been charged the Florida tax rate, would have paid an additional $59.43. Stoked to get such a great deal! Looking forward to it being shipped (any day now...).

[Californiaman]

What is 'sales tax' that I read about, plus 'local taxes'? In the UK we have VAT at 20% on luxury goods.

What is the US tax system? Is it localised or national? Both?

 

Here in the states we also have many hidden taxes that most people don't even realize are taxes.

The registration on my car is $300.00 per year.

We also have property taxes. Utility taxesTaxes on gas. Tobacco and alcohol.

To renew my teaching certificate is $75.00 every five years. It's the same for a nursing license, but I think it's more expensive and every two years.

There are hidden taxes every where. Buy a new set of tires for the car—old tire disposal fee. Same with a car battery, you're taxed on that too.

[milod]

Yeah...

 

I'm not sure I'd say it's the equivalent of three pence to the pound, but I doubt that those not on various government programs - the storied American middle class - gets to really keep 10 percent of the top number on their paycheck. And that doesn't include the lesser paycheck thanks to what their employer pays in such as unemployment taxes and a share of "Social Insecurity" tax. Their employer, that is, excluding government employees.

 

m

[zigzag]

Government = bad.

Private Enterprise = good.

[milod]

Ziggy...

 

Although in theory I'm in agreement, I'd add one:

 

Bureaucrats in large institutions, public or private = frightening

 

m

[heymisterk]

Government = bad.

Private Enterprise = good.

 

I knew it would go there.

 

I think you could absolutely make the argument that there is just as much validity to zigzagging your designations.

[heymisterk]

Here in the states we also have many hidden taxes that most people don't even realize are taxes.

The registration on my car is $300.00 per year.

We also have property taxes. Utility taxesTaxes on gas. Tobacco and alcohol.

To renew my teaching certificate is $75.00 every five years. It's the same for a nursing license, but I think it's more expensive and every two years.

There are hidden taxes every where. Buy a new set of tires for the car—old tire disposal fee. Same with a car battery, you're taxed on that too.

 

Sheesh ...here in OH it is $200 to renew my teaching license for that amount of time. Under our state legislature, the theme seems to be that anything that can make a teacher's life more difficult is good public policy.

[zigzag]

I knew it would go there.

 

I think you could absolutely make the argument that there is just as much validity to zigzagging your designations.

 

It was already there. You should have had your sarcasm filter on. m got it right, and his filter wasn't turned on, either. I think it is interesting that as we grow as a nation, the desired model is for the days when mom and pop stores were the norm, smaller communities thrived, people looked out for each other, and the government was less in your business. The world has gotten smaller, cities are bigger, and more and more people are swallowed up and spit out of the mega-system... death and taxes... Lord have mercy.

[milod]

Oh, I got the sarcasm but what I work with every day kinda takes the steam outa it.

 

I'm in one of the more sparsely populated places in the US and a combination of federal interference and even local expectations from government and increasing mega-corporation gamesmanship with the local economy make me pretty much glad I ain't gonna be here in another 15-20 years max.

 

Me that 'ave followed my trade

In the place where the Lightnin's are made;

"Twixt the Rains and the Sun and the Moon -

 

Any of you school teachers read much Kipling?

 

m

[retrosurfer1959]

Were taxed in manu of the same ways in the USA and you are in England

my taxes this year were

 

35% goes to federal

4.54% goes to state

Property tax if $4200 a year on primary home 1900 a year on secondary home

 

That's right off the top before I see any money

 

then

 

Sales tax in my area is 8.4% so 1 pay that on everything you buy just like a VAT

also I pay those same taxes on any interest income I make on investments, even though i already paid taxes on the money at least once.

my homeowners association is $135 a month and $20 a month in common property tax for common areas.

 

I have to pay a business license fee (tax) in any city I sell my work in and since Phoenix is a metro there is 9 cities i have to have a license and a sales tax ID number for any thing that I sell in those cities. and I have to report and pay those taxes quarterly.

 

I also pay personal property taxes on a trailer we use for camping and hunting.

 

i also have to pay a use tax for anything I buy on-line or otherwise that i bought outside of where I live at so if I buy something on the internetLike a guitar I have to pay local use taxes because I am going to use it where I live supposedly.

 

Luxury items like Gas, Cigarettes, Liquor, all are taxed at a much higher rate

 

We also pay additional taxes for Business Development if you rent a hotel room or rent a car the tax on those is about 15% up to 22% depending on what your doing.

 

If you guys in England still feel like we are getting off light? I pay $1600 a month for health insurance for me and my wife pay $35 to see a doctor or PA (assistant) $55 for a specialist and the first $500 out of pocket on hospital stays and expensive test like MRI or any surgical procedure. Plus since I am considered 100% disabled under the new health rules established this year I get medicare which since my income is high I have to pay $350 a month for the privilege of having medicare but since I have my own insurance coverage for myself and my wife medicare is secondary and medicare doesn't pay for secondary insurance so I an't use medicare basically even though I have to pay $350 a month to have it. and with all that medical coverage I called my doctor yesterday to make and appointment for a non emergency visit and he can see me in only NINE weeks because I'm one of his original favorite patients so I get to see him pretty quickly. and the **** cherry on top of this mess is that in nine weeks when I see him The appointment is supposed to last no more than 11 minutes or insurance needs extra documentation.

 

Bottom line is tough all over when it comes to taxes and government and it's not getting any better!!!.

 

And the roadways and bridges in our area are mostly funded by the state Lottery and PowerBall which is basically taxes for the people who are bad at math and can understand the odds of winning about the same as the odds of getting struck by lightning seven times!!! Hence the roads are in worse shape tan they have been in 40 years in most of the United States. And bridges well those were built right after WW2 so travel fast and throw in a Hail Mary before your cross it.

 

But still that's at least 100 times better than 90% of the other poor saps that live on this planet, so all in all life is pretty damn good and I'm glad I can make enough money to pay for the whole mess with my taxes because only about half of the people in the USA pay taxes anyway.

[daveinspain]

Taxes are a legal way for the rich to collect money from the poor, no matter where you are...

[zigzag]

Dang, retro. I'd hate to be your accountant! You need to find a better accountant and a good investment counselor because you're paying way too much in taxes.

 

And just so there is no misunderstanding, everyone is subject to pay sales tax and those hidden taxes that Caliman referred to. What retro meant to say is that 50% don't pay income taxes (and that data is skewed). People who pay income tax

 

There are lots of loopholes in the tax system which can really lower the rates for many individuals and businesses. The tax code is extremely complicated and needs to be simplified. The knife cuts both ways for people and businesses who pay no (or very low) income taxes. Capitol gains taxes (taxes on income from investments) have been taxed at 15% (though I believe that rate is going up).

 

Remember, too, that 75.3% of all statistics are made up.

[LarryUK]

http://www.labourleft.co.uk/bedroom-tax-will-hammer-singlegrandfoster-parents-disabled-forces-bereaved/

I bet you haven't got a tax like this in America. Read and weep!

[milod]

Lash...

 

Actually you guys, IMHO, are the canary in the coal mine.

 

The rationale in your society for even seriously considering such things is for the greater good of the majority. That's the rationale of far too many "programs" that add cost directly or indirectly to folks who work, and more bureaucracy to wade through even for those on some sort of government assistance.

 

Nowadays that seems increasingly the rationale for increasing bureaucracy and government control. Bureaucrats, in government or the private sector, have their own survival and increasing their position's security rather than whatever the "business" of that agency might be. And "we" reap the crop they sow as it's filtered through increasing expense and lessening benefit.

 

m

[retrosurfer1959]

http://www.labourleft.co.uk/bedroom-tax-will-hammer-singlegrandfoster-parents-disabled-forces-bereaved/

I bet you haven't got a tax like this in America. Read and weep!

 

 

Nope no tax like that probably because there no such thing as Council or City owned housing in most of the United States so you can live in just as big of a place as you can afford. And there's not really a shortage of homes in American older cities especially not in the big cities for an example Detroit has over 10,000 vacant homes in that city right now most are vacant and damaged by fire to the point they are a blight. You can buy a fairly decent home in Detroit for 40k or less, a damaged or bad neighborhood you can buy a house for 100 and up. If you qualify as low income or don't care about your home being in a war zone they will give you a house or even pay you to take it f you'll fix it up and live in it. Although that is very rare example on average homes here can be purchased depending on your area for anywhere from the 120,000 on up the average price is probably in the 225,000 dollar range last time I cared enough to look it up. But council owned homes and the like are not here there not even available. But that looks like it might soon be the case in England also I watched a story on the news last night talking about the new initiatives for the Councils to sell off all the expensive homes the own and rent control and use the money to build low income property or slums as the opponents were calling them.

 

to compare our housing issues with your is useless though really the limited housing you have and the age and condition of the homes were not anywhere near those condition the size of the United States compared to England or most other european or asian cities.

[Tman]

I used to live in Vancouver, Washington on the Washington side of the Columbia river across from Portland, Oregon. There is no state income tax in Washington and no sales tax in Oregon so many people would live in Washington and buy in Oregon. I bought my LP at Apple music in Portland (along with a lot of things).

 

We are taxed like crazy here in California.