Thursday, March 22, 2018

Hidden taxes

Many articles point out that half of the working people pay no income tax and that is true but they do pay social security and Medicare tax and a plethora of hidden taxes. Some of these hidden taxes include tax on utilities (water, electric and heating), tax on cell phones, sales tax on non-food purchased, cable TV tax, gasoline tax, tobacco tax, liquor tax and these are all regressive taxes meaning they hurt the poor. A person who earns $200,000 per year is not concerned if their electric bill is $300 instead of $100 but somebody who earns $50,000 is. Even things like toll roads and tipping are regressive and the mandate penalty under Obamacare hurt the low income people. The reason these taxes are popular with politicians is that they raise a lot of money. Another area of concern to low income people are fees and fines. Things like traffic tickets and the cost of car license and drivers license are more of burden on the poor. Most people would be amazed if they could see how much they pay ech year in these not so obvious areas.

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