Taxes

SkimDaddy

hi lads what kind of tax do you pay how much do they take from your wages? in the USA?does it change from state to state?also how much will i be looking at paying for health insurance?.thanks any advice will help

thom

We pay when we earn it:

Federal withholding (income) tax
FICA tax (Social Security)
FUTA tax (Medicare)
State withholding (income) tax
Some cities have a withholding (income) tax

We pay when we spend it:

State and local sales taxes
exise taxes

We pay on what we own:

Property Taxes

We pay when we die:

Inheritance tax

If that's not enough, employers must match FICA and FUTA taxes, pay federal unemployment, state unemployment, property taxes and income taxes. In order to cover these taxes they must include them in the cost of the goods we purchase.

So, the way it works is, you work, make some $, they might let you keep a little. Some of what you pay is for valuable things. Some is for the National Endowment for the Arts (your tax dollars buy things like a crucifix suspended in a jar of urine) Welfare (you tax dollars provide food, transportation, shelter, medical care, and cash for those who don't care to work), Cowgirl museums (and a host of other museums), Bridges that will rarely be used, Roads that might never be used, blatant cronyism, the list never ends.

Now, if you are a productive member of society and work hard to better your lot in life, you must be evil. Good people are those who demand your money be spent on others (or themselves).

Guys who make $40million per picture will tell you you, making $40,000 per year need to pay more in taxes. You will get the same message from Opra, who makes $100 million annually plus. Now I think that they need to give away every penny above the top 10% line before they tell the rest of us that we should pay more, but to those libbies hypocracy is a badge of honor.

go do it

well said thom

mdshunk

The preacher at my church is a recent UK import, and claims the taxes here in the US are less burdensome than in the UK. Take that for what it's worth.

go do it

yea but they have free health care i think. right?

i wonder what % we pay in the end

45% ?

dougchips

45% is really close when you add everything up.

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oldrivers

last year i paid just under 25% for state, federal. and self employment taxes= social security. im not sure what it all adds up at in the end with sales tax. gas tax etc way to much is all i know.

AtlanticWBConst

Incorporate your business and you will eliminate paying self employment tax...

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thom

Self employment tax is the offset of employers match on FICA. You will eliminate the SE Tax but it will be fully replaced so you won't save any money.

maverick17

If you are actively involved in the business, it is illegal to take all the income as passive distributions.

The way I understand it, you need to pay yourself a wage that would be comparable to what you would need to pay someone else to do that work. If there happens to be more money at the end of the year because you charge more than you would have had to otherwise pay out, then you can take the income as a distribution.

BTW: I think you pay FICA on the first $100k or so of income. So if you would have to pay someone $124k to do your job, all you are saving is the medicare (which is still a couple %)

SkimDaddy

lol ok im still a bit confused.so say i earn $1000 one week how much of that goes to the tax man?