24 Outrageous Facts About Taxes In The United States That Will Blow Your Mind – The Economic Collapse
The U.S. tax code is a complete and utter abomination and it needs to be thrown out entirely. Nobody in their right mind would ever read the whole thing – it is over 3 million words long. Each year, Americans spend billions of hours and hundreds of billions of dollars trying to comply with federal tax requirements. Sadly, it is the honest, hard working Americans in the middle class that always get hit the hardest. The tax code is absolutely riddled with loopholes that big corporations and the ultra-wealthy use to minimize their tax burdens as much as possible. Many poor people do not pay any income taxes at all. The dishonest are rewarded for cheating on their taxes (if they can get away with it) and the ultra-wealthy have moved trillions of dollars to offshore tax havens where they can avoid U.S. taxation altogether. Our system is incredibly unfair to the millions of hard working people in the middle class and upper middle class that drag themselves out of bed and go to work each day and try to do the right thing. In addition, the current U.S. tax system is incredibly inefficient, it diverts a tremendous amount of resources away from more valuable economic activities, and it has chased thousands of businesses and trillions of dollars out of the United States. The U.S. tax code is such a complete and utter mess at this point that it can never be “fixed”. The only rational thing to do is to abolish it completely, and any politician that tells you otherwise is lying to you.
The following are 24 outrageous facts about taxes in the United States that will blow your mind….
1 – The U.S. tax code is now 3.8 million words long. If you took all of William Shakespeare’s works and collected them together, the entire collection would only be about 900,000 words long.
2 – According to the National Taxpayers Union, U.S. taxpayers spend more than 7.6 billion hours complying with federal tax requirements. Imagine what our society would look like if all that time was spent on more economically profitable activities.
3 – 75 years ago, the instructions for Form 1040 were two pages long. Today, they are 189 pages long.
4 – There have been 4,428 changes to the tax code over the last decade. It is incredibly costly to change tax software, tax manuals and tax instruction booklets for all of those changes.
5 – According to the National Taxpayers Union, the IRS currently has 1,999 different publications, forms, and instruction sheets that you can download from the IRS website.
6 – Our tax system has become so complicated that it is almost impossible to file your taxes correctly. For example, back in 1998 Money Magazine had 46 different tax professionals complete a tax return for a hypothetical household. All 46 of them came up with a different result.
7 – In 2009, PC World had five of the most popular tax preparation software websites prepare a tax return for a hypothetical household. All five of them came up with a different result.
8 – The IRS spends $2.45 for every $100 that it collects in taxes.
9 – According to The Tax Foundation, the average American has to work until April 17th just to pay federal, state, and local taxes. Back in 1900, “Tax Freedom Day” came on January 22nd.
10 – When the U.S. government first implemented a personal income tax back in 1913, the vast majority of the population paid a rate of just 1 percent, and the highest marginal tax rate was just 7 percent.
11 – Residents of New Jersey pay $1.64 in taxes for every $1.00 of federal spending that they get back.
12 – The United States is the only nation on the planet that tries to tax citizens on what they earn in foreign countries.
13 – According to Forbes, the 400 highest earning Americans pay an average federal income tax rate of just 18 percent.
14 – Warren Buffett had an effective tax rate of just 17.4 percent for 2010.
15 – The top 20 percent of all income earners in the United States pay approximately 86 percent of all federal income taxes.
16 – Sadly, as Bill Whittle has shown, you could take every single penny that every American earns above $250,000 and it would only fund about 38 percent of the federal budget.
17 – The United States has the highest corporate tax rate in the world (35 percent). In Ireland, the corporate tax rate is only 12.5 percent. This is causing thousands of corporations to move operations out of the United States and into other countries.
18 – Some tax havens are doing a booming business in setting up sham headquarters for U.S. corporations. For example, the city of Zug, Switzerland only has a population of 26,000 people but it is the headquarters for 30,000 companies.
19 – In 1950, corporate taxes accounted for about 30 percent of all federal revenue. In 2012, corporate taxes will account for less than 7 percent of all federal revenue.
20 – In a previous article, I discussed how many of our largest corporations make huge profits and yet pay less than nothing in taxes….
21 – Many wealthy Americans hide enormous amounts of money outside the country in order to avoid paying taxes. According to the IMF, a total of 18 trillion dollars is currently being hidden in offshore banks.
24 – Most of the tax debate is focused on income taxes, but the truth is that Americans pay dozens of other taxes every single year. The following are just a few of the taxes that many Americans pay….
#1 Building Permit Taxes
#2 Capital Gains Taxes
#3 Cigarette Taxes
#4 Court Fines (indirect taxes)
#5 Dog License Taxes
#6 Federal Unemployment Taxes
#7 Fishing License Taxes
#8 Food License Taxes
#9 Gasoline Taxes
#10 Gift Taxes
#11 Hunting License Taxes
#12 Inheritance Taxes
#13 Inventory Taxes
#14 IRS Interest Charges (tax on top of tax)
#17 Luxury Taxes
#18 Marriage License Taxes
#19 Medicare Taxes
#20 Property Taxes
#21 Recreational Vehicle Taxes
#22 Toll Booth Taxes
#23 Sales Taxes
#24 Self-Employment Taxes
#25 School Taxes
#26 Septic Permit Taxes
#27 Service Charge Taxes
#28 Social Security Taxes
#29 State Unemployment Taxes (SUTA)
#30 Telephone Federal Excise Taxes
#31 Telephone Federal Universal Service Fee Taxes
#32 Telephone Minimum Usage Surcharge Taxes
#33 Telephone State And Local Taxes
#34 Tire Taxes
#35 Toll Bridge Taxes
#36 Toll Tunnel Taxes
#37 Traffic Fines (indirect taxation)
#38 Utility Taxes
#39 Vehicle License Registration Taxes
#40 Vehicle Sales Taxes
#41 Workers Compensation Taxes
When you account for all forms of taxation on the federal, state and local levels there are many Americans that pay out more than half of their incomes in taxes.
We are being taxed into oblivion, and yet most Americans do not even realize that it is happening.
It is kind of like being killed by thousands of tiny cuts.
So what do all of these taxes buy us?
They buy us a massively bloated government that wastes money on some of the craziest things imaginable.
Millions of Americans work for the federal government, and yet most of them produce very little of real economic value. The following comes from a recent National Review article….
By 2005, the federal government employed 14.6 million people: 1.9 million civil servants, 770,000 postal workers, 1.44 million uniformed service personnel, 7.6 million contractors, and 2.9 million grantees. This amounted to a ratio of five and a half “shadow” government employees for every civil servant on the federal payroll. Since 1999, the government had grown by over 4.5 million employees.
According to that same article, when you add in state and local government workers the numbers are even more dramatic….
According to the U.S. Census Bureau, there are 3.8 million full-time and 1.5 million part-time employees on state payrolls. Local governments add a further 11 million full-time and 3.2 million part-time personnel. This means that state and local governments combined employ 19.5 million Americans.
Yes, we do need some government. For example, without any law enforcement at all our society would descend into complete chaos, and without any military at all we would be completely open to foreign conquest.
In order to have a stable, secure society we do need some government.
However, we definitely do not need the massively bloated government that we have today.
The truth is that most government employees are a drain on the system. Most of them just push paper around. I used to work in Washington D.C. so I know what pushing paper around is all about.
And as I wrote about yesterday, there are millions of other Americans that enjoy a comfortable existence at the expense of the federal government without doing any work whatsoever.
Of course the biggest welfare recipients of all are the big corporations. All forms of corporate welfare should be eliminated immediately.
When are U.S. taxpayers going to get sick and tired of paying for all of this?
Every single year, the federal government, state governments and local governments drain massive amounts of desperately needed money from hard working middle class families.
Then they take that money and spend it on incredibly foolish things.
When are American voters going to stand up and boldly declare that they have been taxed enough already and they aren’t going to take it anymore?
The current tax code is completely and utterly broken and it is beyond repair.
Unfortunately, neither the Republicans or the Democrats are proposing that we should get rid of it.
So we are just going to continue to get more of the same year after year, and it is the middle class that will feel the pain.
THE SIMPLE TRUTH ABOUT TAXES
CHARLIE REESE’S FINAL COLUMN,
A GREAT READ
Charley Reese’s final column for the Orlando Sentinel…
He has been a journalist for 49 years.
He is retiring and this is HIS LAST COLUMN.
Be sure to read the Tax List at the end.
This is about as clear and easy to understand as it can be. The article below is completely neutral, neither anti-Republican or Democrat. Charlie Reese, a retired reporter for the Orlando Sentinel, has hit the nail directly on the head, defining clearly who it is that in the final analysis must assume responsibility for the judgments made that impact each one of us every day. It’s a short but good read. Worth the time. Worth remembering!
545 vs. 300,000,000 People
-By Charlie Reese
Politicians are the only people in the world who create problems and
then campaign against them.
Have you ever wondered, if both the Democrats and the Republicans are against
deficits, WHY do we have deficits?
Have you ever wondered, if all the politicians are against inflation and high taxes,
WHY do we have inflation and high taxes?
You and I don’t propose a federal budget. The President does.
You and I don’t have the Constitutional authority to vote on appropriations.
The House of Representatives does.
You and I don’t write the tax code, Congress does.
You and I don’t set fiscal policy, Congress does.
You and I don’t control monetary policy, the Federal Reserve Bank does.
One hundred senators, 435 congressmen, one President, and nine Supreme Court justices equates to 545 human beings out of the 300 million are directly, legally, morally, and individually responsible for the domestic problems that plague this country.
I excluded the members of the Federal Reserve Board because that problem was created by the Congress. In 1913, Congress delegated its Constitutional duty to provide a sound currency to a federally chartered, but private, central bank.
I excluded all the special interests and lobbyists for a sound reason. They have no legal authority. They have no ability to coerce a senator, a congressman, or a President to do one cotton-picking thing. I don’t care if they offer a politician $1 million dollars in cash. The politician has the power to accept or reject it. No matter what the lobbyist promises, it is the legislator’s responsibility to determine how he votes.
Those 545 human beings spend much of their energy convincing you that what they did is not their fault. They cooperate in this common con regardless of party.
What separates a politician from a normal human being is an excessive amount of gall. No normal human being would have the gall of a Speaker, who stood up and criticized the President for creating deficits. The President can only propose a budget. He cannot force the Congress to accept it.
The Constitution, which is the supreme law of the land, gives sole responsibility to the House of Representatives for originating and approving appropriations and taxes. Who is the speaker of the House? John Boehner. He is the leader of the majority party. He and fellow House members, not the President, can approve any budget they want. If the President vetoes it, they can pass it over his veto if they agree to.
It seems inconceivable to me that a nation of 300 million cannot replace 545 people who stand convicted — by present facts — of incompetence and irresponsibility. I can’t think of a single domestic problem that is not traceable directly to those 545 people. When you fully grasp the plain truth that 545 people exercise the power of the federal government, then it must follow that what exists is what they want to exist.
If the tax code is unfair, it’s because they want it unfair.
If the budget is in the red, it’s because they want it in the red.
If the Army & Marines are in Iraq and Afghanistan it’s because they wantthem in Iraq and Afghanistan …
If they do not receive social security but are on an elite retirement plan not available to the people, it’s because they want it that way.
There are no insoluble government problems.
Do not let these 545 people shift the blame to bureaucrats, whom they hire and whose jobs they can abolish; to lobbyists, whose gifts and advice they can reject; to regulators, to whom they give the power to regulate and from whom they can take this power. Above all, do not let them con you into the belief that there exists disembodied mystical forces like “the economy,” “inflation,” or “politics” that prevent them from doing what they take an oath to do.
Those 545 people, and they alone, are responsible.
They, and they alone, have the power.
They, and they alone, should be held accountable by the people who are their bosses.
Provided the voters have the gumption to manage their own employees…
We should vote all of them out of office and clean up their mess!
Charlie Reese is a former columnist of the Orlando Sentinel Newspaper.
What you do with this article now that you have read it… is up to you.
This might be funny if it weren’t so true.
Be sure to read all the way to the end:
Tax his land,
Tax his bed,
Tax the table,
At which he’s fed.
Tax his tractor,
Tax his mule,
Teach him taxes
Are the rule.
Tax his work,
Tax his pay,
He works for
Tax his cow,
Tax his goat,
Tax his pants,
Tax his coat.
Tax his ties,
Tax his shirt,
Tax his work,
Tax his dirt.
Tax his tobacco,
Tax his drink,
Tax him if he
Tries to think.
Tax his cigars,
Tax his beers,
If he cries
Tax his tears.
Tax his car,
Tax his gas,
Find other ways
To tax his ass.
Tax all he has
Then let him know
That you won’t be done
Till he has no dough.
When he screams and hollers;
Then tax him some more,
Tax him till
He’s good and sore.
Then tax his coffin,
Tax his grave,
Tax the sod in
Which he’s laid…
Put these words
Upon his tomb,
‘Taxes drove me
to my doom…’
When he’s gone,
Do not relax,
Its time to apply
The inheritance tax.
Accounts Receivable Tax
Building Permit Tax
CDL license Tax
Corporate Income Tax
Dog License Tax
Federal Income Tax
Federal Unemployment Tax (FUTA)
Fishing License Tax
Food License Tax
Fuel Permit Tax
Gasoline Tax (currently 44.75 cents per gallon)
Gross Receipts Tax
Hunting License Tax
IRS Interest Charges IRS Penalties (tax on top of tax)
Marriage License Tax
Personal Property Tax
Real Estate Tax
Service Charge Tax
Social Security Tax
Road Usage Tax
Recreational Vehicle Tax
State Income Tax
State Unemployment Tax (SUTA)
Telephone Federal Excise Tax
Telephone Federal Universal Service Fee Tax
Telephone Federal, State and Local Surcharge Taxes
Telephone Minimum Usage Surcharge Tax
Telephone Recurring and Nonrecurring Charges Tax
Telephone State and Local Tax
Telephone Usage Charge Tax
Vehicle License Registration Tax
Vehicle Sales Tax
Watercraft Registration Tax
Well Permit Tax
Workers Compensation Tax
STILL THINK THIS IS FUNNY?
Not one of these taxes existed 100 years ago, & our nation was the most prosperous in the world.
We had absolutely no national debt, had the largest middle class in the world, and Mom stayed home to raise the kids.
What in the heck happened? ……can you spell ‘politicians?’
I hope this goes around THE USA at least 545 times! YOU can help it get there!
GO AHEAD. . . BE AN AMERICAN!
The TRUE DEMOCRACY PARTY: POSITION ON TAXES – TOTAL RESET (TWO TAX PARADIGM)
TAX ONE: FLAT RATE .05% Percent Per U.S. Citizen or Other Individual Income Tax
TAX TWO: FLAT RATE .10% Percent Of Profit Based Business Tax
NO OTHER TAXES PERIOD!
Anything else starts to complicate matters and digs “to deep” into our pockets to the point of “SCAM” in many cases.
“There are multiple other ways for the ‘Government’ to get the Money/Funding it needs to operate.
It could start by just creating the New Debt-Free Money itself, as is the Constitutional Right and Mandate of the U.S. Congress, instead of BORROWING the Debt-Based Money with INTEREST from a PRIVATE BANK, the Federal Reserve, which uses a massively fraudulent monetary system (Fractional Reserve Banking), which allows it to create new money out of thin air at a 9:1 Ratio.
It allows these Bankers to buy up Countries and all it’s Politicians, all the Media, all the resources, all of Hollywood, Radio, Cable, and that allows Rampant Pollution of our Natural Resource Waters, Land and Air.
It’s an Absolutely Horrid System THAT MUST BE ENDED!”
Fractional Reserve Banking
Money As Debt – Full Length Documentary
Fiscal Cliff Explained
“If you don’t give the Bankers all your money, they’ll drive your economy off a cliff!”
Published on Tuesday, April 17, 2012 by Common Dreams
‘Buffet Rule’ Failure Supports Notion that US Tax Code Serves Wealthiest First
Vote in US Senate helps validate widely held belief that wealthiest benefit most from skewed tax code
– Common Dreams staff
More than two-thirds of Americans believe the revenue system benefits the wealthy while being unfair to average workers, according to a new CNN/ORC poll.
There is a distinct political divide in how Americans view the tax system. (Reuters)
Released today, the morning after a vote in the US Senate failed to attract enough support to pass a rule that would guarantee millionaires and billionaires pay at least as much in taxes as those in the middle class — the so-called “Buffett Rule” — the poll revealed that “68% of respondents said the current tax system benefits the rich and is unfair to ordinary workers, compared with 29% who disagreed with that view.”
* * *
CNN/ORC poll: Most Americans say tax system favors wealthy
In the CNN/ORC survey, 68% of respondents said the current tax system benefits the rich and is unfair to ordinary workers, compared with 29% who disagreed with that view. Overall, 50% said the federal income taxes they paid were about right, with 45% saying their taxes were too high and 3% answering their taxes were too low.
Throughout the 1990s, more than six in 10 Americans generally said their taxes were too high, but after the tax cuts proposed by President George W. Bush went into effect, that number dropped to the high 40s and has stayed in that range since.
Political and generational divisions exist in how Americans view their taxes. Some 53% of Republicans say their income taxes are too high, compared with 41% of Democrats. Among Americans who identify as independents, 44% say they’re paying too much in income tax.
Age also matters – the youngest and oldest Americans don’t think their taxes are too high, but Americans between 35 and 65 think that way. Among 18-34 year olds, 41% say their taxes are too high, compared with 51% for Americans aged 35-49 and 51% for those aged 50-64.
* * *
Reuters: “Buffett Rule” fails Senate vote in tax fight
Senate Republicans on Monday blocked President Barack Obama’s “Buffett Rule” legislation, which would have put a 30-percent minimum tax on millionaires, in a debate that is likely to resonate through the November general election.
Democrats, as expected, failed to garner the 60 votes needed in the 100-member Senate to move to a full debate and vote on the bill aimed at getting more tax revenues out of the wealthy.
Obama and congressional Republicans are squaring off this week over the tax hikes for millionaires and a Republican plan to give new tax cuts for businesses.
“Tonight, Senate Republicans voted to block the Buffett Rule, choosing once again to protect tax breaks for the wealthiest few Americans at the expense of the middle class,” Obama said in a statement.
Though scant changes to tax policy are expected ahead of the November 6 election, the skirmishes are giving voters a preview of debates they will hear over the next seven months.
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