American taxes... "simplified"...
warning- even though this is "BRIEF" as far as our taxes go, it's a nightmare... And is why I prefer the "PAYE" Irish tax...
Personal Property Tax...
Houses, Cars, Tractors, Sheds, Boats, Land and even horses, chickens and pigs... all taxed...
Annually, A convertible is taxed heavier than a hard top "Based on intrinsic value, not engine displacement...." or in my words, "a fun car is taxed harder..."
Purchase price or established value of a car new or used is taxed... EACH time it changes hands... And fees do factor in "Taxable Horsepower" rather than displacement.
I'm well aware of the taxes everyone pays here, they're fairly steep! But OMG, you should see the taxes we pay in America on property. Some states dont have it, while other states do. Missouri has a property tax that is fairly hefty, in the city where I had my property. An small $70,000 house would run about $600/year in taxes... Our road tax is figured in fuel, but on top of that, you have to pay in one or two year increments for license plates. If you let it expire, its cheaper to get new plates than pay the late fee...
Winnings tax... and Income Tax
And one thing I've noticed you guys have here is a lack of winnings-tax. In the greater portion of America that has LEGAL gambling *some states outlaw it all together* it's almost half of what you win.. goes straight to the governments...
First off, it falls into two groups.. Above or Below $1,200 in Missouri. If its below, you can elect to pay when you file taxes at the end of the year- this means you'll owe the state and federal taxes, must be paid prior to April 15th. If it is above you are required to pay AT the Casino before leaving. If you win $10,000.00, you'll probably be walking out with $5,200.00 or so. AND then at the end of the year, if you earned 29,000.00.... it effectively becomes $39,000 and that allows them to tax your normal income of 29,000 at a few percent higher- as you'll likely be in a higher "tax-bracket." So instead of taking home 82% of your income, you are only allowed to take home 80%... Having to pay the state and federal treasuries "back" the 2% difference.
Income tax is progressive
To avoid this, in case I received any untaxed income throughout the year, I would have my employer "with hold" an extra $25 to $50 in state and federal taxes. I once made the mistake of only sending my extra to the Federal taxes rather than split it... It came back to me the following year and I was taxed on it by the state... Federal income-tax is not taxable by the state, they measure their percentage from the "after federal taxed" income... So then didn't see the couple hundred $$ I overpaid until the following year...
And then there's the subject that boils my blood... (This is in an area where a family income of $40,000 is very comfortable)
Unmarried "single parents with 4 dependents"... With a combined gross income of $52,000 and refusing to accept a raise *as it would place him into a taxable bracket... By filing as individuals, with separate legal addresses despite living in the same house, a couple with children can get back 100%+ of all taxes paid into the state/federal government...
I know of several people doing this and somehow its legal... They have government subsidy income $18,000 a year in "food stamps" and the female receives child-support from the father *which isn't taxed* as he earns it and her job is cash income, so he ON PAPER earns $24,000 after child support, and would have to pay in just $5k if single, but with four children, he gets tax "credit" so not only does he get the $5k back, but he receives an ADDITIONAL annual check from the state and federal government between $12,000 and $16,000!!!!
It is like America is paying people just to reproduce! I believe that a person should be entitled to help if they need it or up to 100% full refund of taxes if they don't earn above poverty level, but exceeding 100% is just plain sickening!
