7 months ago
(E)
After you earn a dollar for your hard work, how much do you really make after taxes?
We will look at both income and sales tax.
First, you earn a dollar, then you pay a tax percentage based on your total net income. In this case, we will use the average $11,000 and $44,725 yearly income.
Based on the average income, your dollar already owes 12% in tax.
After you pay the 12% of income tax, now your $1 is no longer a dollar and becomes 88 cents.
Once you decide to go shopping with your 88 cents, you will be subject to sales tax. Depending on the state you reside in, you can expect to pay anywhere from 4%-9%.
Let's take the lowest sales tax percentage 4% as an example.
After you pay the sales tax of the minimum 4%, your 88 cents now becomes 84 cents.
If you were living in states that have a sales tax with the combined local tax of 9+%, such as Louisiana then your 88 cents would only be 79 cents.
So how much is your hard-earned $1 dollar worth?
88–79 cents!
This is because your $1 dollar is getting taxed twice!
Sources
https://www.policygenius.c...
https://www.rocketmoney.co...
#economy #inflation #finance #truth #taxes #reality
We will look at both income and sales tax.
First, you earn a dollar, then you pay a tax percentage based on your total net income. In this case, we will use the average $11,000 and $44,725 yearly income.
Based on the average income, your dollar already owes 12% in tax.
After you pay the 12% of income tax, now your $1 is no longer a dollar and becomes 88 cents.
Once you decide to go shopping with your 88 cents, you will be subject to sales tax. Depending on the state you reside in, you can expect to pay anywhere from 4%-9%.
Let's take the lowest sales tax percentage 4% as an example.
After you pay the sales tax of the minimum 4%, your 88 cents now becomes 84 cents.
If you were living in states that have a sales tax with the combined local tax of 9+%, such as Louisiana then your 88 cents would only be 79 cents.
So how much is your hard-earned $1 dollar worth?
88–79 cents!
This is because your $1 dollar is getting taxed twice!
Sources
https://www.policygenius.c...
https://www.rocketmoney.co...
#economy #inflation #finance #truth #taxes #reality
