I read an article this weekend that says Hawaii's new state tax tops out at 11%. That is breathtaking all by itself. To qualify for that bracket you must make 400,000 dollars or more. Couple that with a 35% Federal rate and you get a breathtaking 46% tax loss.
Throw in another 10% in social security and medicare/medicaid taxes and you are staring at 56%.
Wow. More than 1/2 of your income taken away. We're not even talking about all of the other taxes, property, gas taxes, or Hawaii's tax on businesses. It's hard to quantify capital gains taxes, short term gains, inheritance taxes, things like that. So let's take a look at some things I can quantify.
I use 2000 gallons of gasoline per year. That costs me 900 bucks in state and federal gas taxes. At 5000.00 a year in groceries, I pay 300 bucks in sales tax. I pay another 600 bucks a year for smokeless tobacco. Idaho has a 40% ad valorem tax on the wholesale price plus the standard 6% sales tax.
So that is a nifty little 1800 tax loss. That is about one months salary, net after taxes. Now that's a drop in the bucket compared to our big wage earner, but unfortunately for the vast majority of Americans, 1800 bucks is 5 or 6% of our income.
Now if you are losing 60% of your income on taxes like our 400,000 wage earner, I have two simple questions.
If you are giving 3/5ths of your income to the government, are you not in fact a defacto "government employee?"
And my next question is, "why the hell are you doing it?"
The answer is simple. You still have 160,000 to play with when you get done ponying up. I on the other hand, only have about 24,000 dollars left. (my rate at 40%)
That is precisely why middle income Americans are mad as hell at our net 40% rates and why 400,000 dollar wage earners aren't as much- they have wiggle room. I have to figure out how to pay for a house, health care, a car, and all that wasteful insurance on 24 grand. Some dude making 400,000 can certainly slide by on his net 160,000 without too much bellyaching. But it gets gooder.
We got a 65 trillion dollar debt coming due and you can't divide that note + interest with all of the 38,000 dollar wage earners in...North America. And don't forget to figure in the annual costs of running government in addition to that debt. Let's see, that figure looks like this. 65,000,000,000,000.00. So bear down big wage earner.
Government is coming to steal your wiggle room. The big Marxist is after your money. They absolutely have to, you understand. And when they steal enough of your scrill, you'll join us anti-government conservatives. Because if they steal enough of your dough, maybe 70 or 75% altogether, your bellyache will begin and we'll greet you with open arms. And maybe you'll finally figure out that you do in fact, work for the government. We all do. Eventually our government, perhaps ye by your fearful silence, will help create the perfect communist state. Private employees making 38k and paying the six figure salaries for rich government workers to perform this admirable job they perform- only because they got the power to steal your dough from you and you ain't got the power or the balls to steal it back.