So You Think You’ve Paid Your Tax Bill

Thursday, April 18, is Tax Freedom Day this year.  That is the day when the nation as a whole as earned enough to pay its local, state and federal taxes.  It’s five days later than it was last year, primarily due to the fiscal cliff deal that raised federal taxes on individual income and payroll. Additionally, Obamacare’s investment tax and excise tax went into effect.

That means that the average taxpayer will work 29.4 percent of the year, just to pay his or her tax bill.  But not so fast, the Tax Foundation which runs these numbers does not include the amount of annual federal borrowing, which represents future taxes owned.  

So you see,  celebrating Tax Freedom Day would be like paying your family’s bills that come due each month while ignoring the amount you run up on those credit cards in order to meet all of your obligations.  

This year, the federal government plans to borrow another $833 billion, but remember, that is best case.  The year isn’t over yet.  

If we add in the cost of all this borrowed money, Tax Freedom day will not come until May 9, which is well over a third of the year.  Under the old feudal system which was practiced in medial Europe, the lords, who owned all the property, taxed the serfs 1/3 of what they produced and we called them slaves!

It gets worse:  In order to calculate Tax Freedom Day, the Tax Foundation divides all the taxes paid by our total national income.  Bear in mind, that roughly 47 percent of Americans pay no income tax at all, so the entire tax burden is bore by 54 percent of hard working Americans.  The rest get a free ride.

It’s worse still:  Americans for Tax Reform Foundation adds in the cost of all those pesky regulations with which we are compelled to comply in order to come up with the number of days the average American must work to pay for the total cost of our behemoth government.  Last year, it was a full 197 days, which pushed Cost of Government Day to July 15.  That is over half the year! 

An Important note:  This was the fourth straight year that Cost of Government Day fell in July.  Prior to the Obama Administration, the COGD had never fallen later than the month of June.  

It is true, many of those regulations are borne by businesses and they don’t effect you directly — but they all effect you indirectly and drive up the cost of everything you use or consume.  Ka-ching, Ka-ching!   And so it goes.  You work hard.  You may make a decent salary but at the end of the year you have little or nothing to show for it.  Where did all that money go?

We have been poor stewards of a government that was won for us by the blood of our forefathers, one based on equality and personal responsibility.  

Your local, state and federal tax bills are just the beginning.  Here are some examples of the personal consumer taxes most of us pay each an every day, month and year without thinking:

  • Gas and electric bill fees & taxes
  • Water and sewer fees & taxes
  • Federal, state and local gasoline tax
  • TV cable/satellite fees & taxes
  • Federal telephone surtax, excise tax and universal surcharge
  • State telephone excise tax and surcharge
  • Telephone minimum usage and recurring/nonrecurring charge tax
  • Waste management tax
  • Oil and gas assessment tax
  • Air travel: $3.80 per segment plus a security fee and Passenger Facility Charges
  • Hotel tax
  • Car rental tax
  • Road and bridge tolls
  • Alcohol and cigarette tax
  • Driver’s license renewal fee
  • Passport fee
  • Nature trail permit
  • Watercraft registration & license
  • State and national park permits and entrance fees
  • New car surcharge
  • Luxury & gas-guzzler car tax
  • Recreational vehicle tax
  • Jewelry taxes & surcharges
  • Yacht and luxury boat taxes
  • Hunting license
  • Fishing license
  • Bike license fee
  • Dog permit/license
  • Sports stadium tax

This is just a sample of the hidden taxes we pay and doesn’t include the countless taxes imposed on businesses large and small.  The dirty little secret is that businesses don’t pay taxes.  They are passed along to consumers in the form of higher prices.

So take a long, hard look at the real cost of your government.  And bear in mind, when you lose the ability to control a fair portion of what you earn, freedom is just an illusion.  

The dreaded April 15 has come and gone, but if you think you have finished paying your taxes, you are sadly mistaken.  

6 thoughts on “So You Think You’ve Paid Your Tax Bill

  1. Jane I agree we pay to much in taxes but how do you think we’re supposed to pay for all these troops in 130 foreign countries? You’re for war with Iran, North Korea, Syria, etc. we still have over 4,000 contractors in Iraq. You’re a fan of the war on drugs aren’t you Jane? We have to pay for it some how. Maybe Jane your domestic and foreign policy should be more in line with your tax policy.

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  2. I have to agree with both Jane and the previous poster, we need a complete overhaul of the Federal Government to align it with our Constitution and its Federal mandates. We should remove our military from most, if not all, foreign locations. Let the dizzy dummies fight among themselves, killing each other as they solve their domestic problems. Expenditures should be directed toward making our nation the Shining City on the Hill and that will be accomplished with personal earnings left in the hands of those who earn it. We should be the example that other nations seek to emulate. We can do that by amputating most of the Federal departments and bureaucrats, returning to sound fiscal policies.

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  3. Yep….

    God gave people the gift of life….

    Government is making it to expensive to have this gift for millions of people…

    They will have to give it back to God…

    they can’t afford the gift….

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  4. Jane, thanks for that list of hidden taxes. I have long thought that they are the refuge of cowardly politicians who don’t want to be caught visibly raising our taxes and who are only too happy to keep approving new “fees.” The little rascals.

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  5. Ms. Chastain is absolutely right about all the hidden taxes and fees we pay. If you are a typical home owner you were taxed on your income and then taxed again on the interest on the money you saved for a down payment, and now you pay property taxes, meaning that you are, in effect, renting your house from the government, despite the fact that you paid for it. If you fall behind on your rent, they will evict you.
    If you buy groceries (or, indeed, any product) you are paying the property taxes and corporate income taxes of the supermarket chain, the trucking and rail companies that delivered the food, the food processing companies, and the farmers and ranchers…it’s all hidden, embedded in the price.
    And then there is the cost of the fiat money, based on nothing whatever, printed by the Federal Reserve, that ultimate example of crony capitalism bequeathed to us by “liberal” politicians. This consortium of private banks is empowered by the government to, in effect, counterfeit legally, creating a permanent inflation…which we pay for.

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  6. Excellent analysis… particularly regarding the “hidden” aspects of the tax burden. My own personal thought is that everyone should pay something… anything. No one, no matter what the income, should ever pay nothing.
    When we pastored the church, we always made provision for scholarships to those who may not be able to afford attending a conference etc. That said, no one ever got a free ride. One can not foster respect and self-esteem with the “free ride” principle. Everyone paid something. We asked them what they could pay (on the honor system) and then we made the decision as to whether we would make up the rest. It was done through relationship and encouraging people in what God could do for and through them. Would to God our government would get behind those making an investment in themselves and encourage responsibility.
    My daughter helped to start a food program through a church in Margaretville, NY… a small town in the Catskills. This church allows low income people to come and shop in their store where the items are priced very low. It is a self-sustaining program that relies on food donations and the people paying for what they need. Additionally, they feed Seniors in need every Wednesday. This is a win for everyone!
    During the devastating floods in the Catskills a couple years ago, they became a stronghold to feed and care for the volunteers, first responders, displaced families etc. They gave out well over one hundred thousand dollars of food! All because of practically implementing the basic principle of self-esteem and self-respect.
    My philosophy has always been, “If you are not willing to make an investment in yourself why should I?” Making an investment in oneself is a basic measure of self- esteem and self-respect. It should be the first requirement in discipling others. Making an investment for the purposes of a greater whole begins with investing in ones self in order to bring health, security and strength… without which, one is not whole enough to make an ongoing real contribution to the purposes of a greater whole.
    Strong, whole individuals can build strong marriages, strong families, strong churches and a strong government. I believe our Founding Fathers understood this only too well.
    When we talk about cost, the lack of promoting this basic principle is costing America far more than money. As we know, building a strong self-esteem begins with knowing Christ so that we may know ourselves and how we have been created and bent. We in the church must own up to where we are and get serious about discipling the church instead of enabling her.

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