In today’s news was a story that 47% of the people in the country don’t pay income taxes. This makes it sound like they are getting a free ride. In reality they aren’t.
Whenever talking about taxes the statist loving relic media and the political class speak about the income tax only. The fact is that the income tax is only a small part of the taxes levied on all Americans by governments at all levels.
In addition to income taxes, there are all sorts of fees, surcharges, and fines. State income taxes, county and city taxes. There is Medicare, FICA, Medicaid, unemployment insurance. Most of these taxes are taken out of our pay checks and are visible. But that is only the beginning.
There are dozens of non-paycheck taxes such as inheritance, property, excise, gas, tobacco and other sin taxes, license plate fees, fishing and hunting licenses, there are at least 6 taxes and surcharges on my phone bill and 3 or 4 on my electric bill. There is a fee when I take trash to the dump, dial 911 or call the fire department. Taxes and landing fees are tacked on to on plane tickets. There are fees when you buy or sell real estate or a car
There are sales taxes every time we buy something. If you drive to fast, too slow, or not straight enough there are fines paid to the government. If I go to court there are court costs. Make a late payment to the IRS and you are fined at least 25%, unless you are Charlie Rangel.
Now that the health care bill has passed, everyone can look forward to even more taxes. There is a n increase of 4.6% in federal taxes from 35% to 39.6% (expiration of Bush tax cuts), an increase in capital gains taxes from 15% to 20% (expiration of Bush tax cuts), a new tax of 3.85% on investment income, dividends, rents, royalties mandated in the new health care bill, and an increase in the Medicare payroll tax to 2.35% as mandated in the new health care bill. And this is in addition to the health insurance or fine imposed on everyone in the bill.
So with all of these taxes, fees, and fines, even the noble poor are paying huge amounts of money to the government. They are not getting a free ride. The only ones getting a free ride are governments at all levels.