Comments on: Five Things I Learned About Taxes Today http://thebudgetingbabe.com/2012/01/24/fiv-things-i-learned-about-taxes-today/ A personal finance blog for career minded women with small budgets and big dreams. Sun, 05 Aug 2012 15:47:43 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Allison http://thebudgetingbabe.com/2012/01/24/fiv-things-i-learned-about-taxes-today/#comment-19470 Allison Thu, 26 Jan 2012 14:46:05 +0000 http://thebudgetingbabe.com/?p=1252#comment-19470 Thanks for this! I know nothing about taxes, yet I do ours every single year. Hmmm. This helps, thanks! Thanks for this! I know nothing about taxes, yet I do ours every single year. Hmmm. This helps, thanks!

]]> By: Missie http://thebudgetingbabe.com/2012/01/24/fiv-things-i-learned-about-taxes-today/#comment-19467 Missie Thu, 26 Jan 2012 01:45:10 +0000 http://thebudgetingbabe.com/?p=1252#comment-19467 I think that what so many people seem to forget in all the frenzy about taxes is what you pointed out, Nicole -- taxes pay for things we, as a peaceful society, expect and demand, such as law enforcement...and more emphasis should be placed on health care and education, too, IMO. One way or another -- be it through local taxes (e.g., property, sales, or state income) or federal taxes -- these services have to be funded and paid for. I live in Texas, and we don't have a state sales tax, BUT as a result, sales tax and property taxes often tend to be relatively higher (property tax is established at the county level -- or, at least, it used to be, I think it still is -- and so property taxes are all over the map). In other words, one way or another, the funds have to be raised to pay for these services...and as you pointed out, it's the EFFECTIVE tax rate that is most relevant. For example, being self-employed, we do not pay income tax on our gross business earnings, but on the net earnings determined after our business expenses. Business owners who carry an inventory have taxes involved with their inventory, but it's still based on the same kind of principal. I think that what so many people seem to forget in all the frenzy about taxes is what you pointed out, Nicole — taxes pay for things we, as a peaceful society, expect and demand, such as law enforcement…and more emphasis should be placed on health care and education, too, IMO.

One way or another — be it through local taxes (e.g., property, sales, or state income) or federal taxes — these services have to be funded and paid for.

I live in Texas, and we don’t have a state sales tax, BUT as a result, sales tax and property taxes often tend to be relatively higher (property tax is established at the county level — or, at least, it used to be, I think it still is — and so property taxes are all over the map).

In other words, one way or another, the funds have to be raised to pay for these services…and as you pointed out, it’s the EFFECTIVE tax rate that is most relevant.

For example, being self-employed, we do not pay income tax on our gross business earnings, but on the net earnings determined after our business expenses.

Business owners who carry an inventory have taxes involved with their inventory, but it’s still based on the same kind of principal.

]]> By: The Budgeting Babe http://thebudgetingbabe.com/2012/01/24/fiv-things-i-learned-about-taxes-today/#comment-19464 The Budgeting Babe Wed, 25 Jan 2012 14:11:13 +0000 http://thebudgetingbabe.com/?p=1252#comment-19464 I've given this more thought and should probably make clear that point #5 was more about the overall philosophy of taxes vs. the current state of affairs. I'm well aware that our entitlement programs are too big for our national budget to handle. I'm also aware that some of the taxes I mentioned in point 5 were local vs. federal taxes. I think there needs to be much greater efficiency and planning in how are federal taxes are used. My point was just that I am not opposed to the concept of taxes as some people are. I’ve given this more thought and should probably make clear that point #5 was more about the overall philosophy of taxes vs. the current state of affairs. I’m well aware that our entitlement programs are too big for our national budget to handle. I’m also aware that some of the taxes I mentioned in point 5 were local vs. federal taxes. I think there needs to be much greater efficiency and planning in how are federal taxes are used. My point was just that I am not opposed to the concept of taxes as some people are.

]]> By: Tanja http://thebudgetingbabe.com/2012/01/24/fiv-things-i-learned-about-taxes-today/#comment-19463 Tanja Wed, 25 Jan 2012 13:19:23 +0000 http://thebudgetingbabe.com/?p=1252#comment-19463 As a person who lived in Europe most of my life I’m not opposed to hire tax rates as long as that money is used efficiently. In my former country my parents were taxed at 50% rate but we did have free healthcare and education. Ok maybe our healthcare was not as advanced as US but we did live healthier life with more walking, great food and amazing work-life balance and our education was way better than most US states. According to my parents everyone was taxed at the pretty much the same rate. Don’t get me wrong I love USA, I’m just saying that higher tax sometimes does not have to be EVIL. :) As a person who lived in Europe most of my life I’m not opposed to hire tax rates as long as that money is used efficiently. In my former country my parents were taxed at 50% rate but we did have free healthcare and education. Ok maybe our healthcare was not as advanced as US but we did live healthier life with more walking, great food and amazing work-life balance and our education was way better than most US states. According to my parents everyone was taxed at the pretty much the same rate.
Don’t get me wrong I love USA, I’m just saying that higher tax sometimes does not have to be EVIL.
:)

]]>