Monday, April 18, 2016

tax day 2016

for Tax Day, I give you an AEI study that looks like an impressive effort to compile survey data on public perception of taxes...

The three most misunderstood and important things about taxes:
1.) Although you probably pay little attention to them, you probably lose a lot more of your income to FICA taxes. If you earn less than $118,500, round your income down to the nearest $10K and multiply by 15% to give you an idea what you lose from that nasty tax. 
2.) Remember that "April 15th" only represents an *adjustment* to your "federal income taxes". You've been paying too little or too much throughout the year-- and they don't know what you should pay. The 1040 helps you/them figure it out.
3.) The current income tax code is also a tax on your time, since it's done so inefficiently. Americans spend billions of hours and dollars to fill out needlessly-complex tax forms. Crony capitalism and all sorts of regressive subsidies (some of which you probably enjoy) are responsible. A flat income tax; the "Fair Tax"; or simply the elimination of loopholes would be a great improvement in this regard.


At June 22, 2016 at 12:22 AM , Blogger Wanda Hanson said...

I agree with you. Generally, I leave the tax situation to my husband. I find the new tax laws baffling. Hubby likes to leave the taxes to the experts. Over the years, we've found this is the best solution for us. Before, we'd spend sleepless nights trying to determine ways to save on our taxes.

Wanda Hanson @ Tax Tiger


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