SALES TAX RANT

[k0ua]

Try Nova Scotia, 15% even on used vehicles....Mike

OK, now that IS bad!

 

[dave1949]

Washington state used to have that excise tax on vehicles to license annually. Very, very expensive until the taxpayers raised up on their hindfeet and passed an initiative limiting license fees to $30/year. That was back in the 70s or perhaps late 60s. Still $30/yr but they have found ways to tack on extra fees to it. Still under $100/yr though on a car or light truck.

Harry K

Money for roads has to come from somewhere. Fuel taxes are about the fairest way of raising that money since they are tied to those who get the most benefit from the roads. Tolls on roads also work that way. Even with fuel taxes and tolls there are drawbacks.

Federal and State fuel taxes are open to being spent for the wrong things or in the wrong places. Fuel taxes at the local level aren't very efficient to administer and lacking a gas station, I don't know how my town would collect them. Even if perfectly used there is still the distribution overhead of deciding who gets what and the administrative overhead of handling the revenue. Toll roads often generate more revenue than is needed and the excess goes into a state's general fund. Private toll roads operated for-profit are another can of worms.

100% of vehicle excise taxes are used for road upkeep in my location and it is used as decided very locally with minimal overhead. Those taxes have nothing to do with how much a person uses the roads though and that is a drawback. Road upkeep revenue from property or income taxes also lacks fairness.

I don't know of any perfect method of getting revenue for road upkeep. It seems like most places get a little here, a little there, and that sort of evens out any inherent unfairness from one person to another.

 

[JKR]

Death and taxes... I guess I should be happy it's taxes...

See tax's are so bad...

 

[dfkrug]

Fuel taxes are about the fairest way of raising that money since they are tied to those
who get the most benefit from the roads. Tolls on roads also work that way. Even with fuel taxes and tolls there are
drawbacks.

Yeah, there are definitely drawbacks. Oregon is the first state, I believe, that has tried to pass a new law that will
tax drivers based on miles driven. This is in response to the sales of electric cars, which pay no gas tax, and
plug-in hybrids, which pay very little. If I recall, the tax would apply to those getting over 55MPG-equivalent.

How ironic: after massive federal and state subsidies of electric cars, they turn around and tax folks for the cars that
were promoted, due to the lost revenue.

I have not heard how they would monitor miles driven, or even if the law passed. Anyone from OR?

 

[SPIKER]

Yeah, there are definitely drawbacks. Oregon is the first state, I believe, that has tried to pass a new law that will
tax drivers based on miles driven. This is in response to the sales of electric cars, which pay no gas tax, and
plug-in hybrids, which pay very little. If I recall, the tax would apply to those getting over 55MPG-equivalent.

How ironic: after massive federal and state subsidies of electric cars, they turn around and tax folks for the cars that
were promoted, due to the lost revenue.

I have not heard how they would monitor miles driven, or even if the law passed. Anyone from OR?

Hope so, just cause they bought a TESLA (100K buck car) then they can afford to pay for the road they are using!

 

[turnkey4099]

Me too. Worse yet in Maine I'd be writing another $2xxx check a year later for annual excise tax on a $60K new vehicle.

Yep. That was Washington until we taxpayers passed an initiative doing away with that annual excise tax. I never did understand what their annual was based. Somehow age of vehicle came into it but I know driving a beater 65 for example would be the same as a good condition 65 of same make.

Harry K

 

[turnkey4099]

Money for roads has to come from somewhere. Fuel taxes are about the fairest way of raising that money since they are tied to those who get the most benefit from the roads. Tolls on roads also work that way. Even with fuel taxes and tolls there are drawbacks.

Federal and State fuel taxes are open to being spent for the wrong things or in the wrong places. Fuel taxes at the local level aren't very efficient to administer and lacking a gas station, I don't know how my town would collect them. Even if perfectly used there is still the distribution overhead of deciding who gets what and the administrative overhead of handling the revenue. Toll roads often generate more revenue than is needed and the excess goes into a state's general fund. Private toll roads operated for-profit are another can of worms.

100% of vehicle excise taxes are used for road upkeep in my location and it is used as decided very locally with minimal overhead. Those taxes have nothing to do with how much a person uses the roads though and that is a drawback. Road upkeep revenue from property or income taxes also lacks fairness.

I don't know of any perfect method of getting revenue for road upkeep. It seems like most places get a little here, a little there, and that sort of evens out any inherent unfairness from one person to another.

True for that old excise tax but while it was in effect, and still today, Washington has one of the highest gas taxes in the nation...and they are talkingabout adding another $1.00/gal to it. They'll never get that passed though but will probably reacha "compromise" at around .50.

Harry K

 

[mjarrels]

Wish it was just sales tax, local city just passed a pavement tax, paved driveway is going to cost you. Storm water runoff control is the reason. County usually follows suit about two years later. Sad part, city is trying to figure out how to spend 2.6 million surplus. Between taxes and insurance, I can barely affort to live in this counrty. My days of being middle class are slipping away fast. I think there is a reason why state capitals are surrended by lobbyist.

mark

 

[Buppies]

Wish it was just sales tax, local city just passed a pavement tax, paved driveway is going to cost you. Storm water runoff control is the reason. County usually follows suit about two years later. Sad part, city is trying to figure out how to spend 2.6 million surplus. Between taxes and insurance, I can barely affort to live in this counrty. My days of being middle class are slipping away fast. I think there is a reason why state capitals are surrended by lobbyist.

mark

This tax is something different has more to do with environmental people in Washington than local. Will show up nationwide soon

 

[jix]

We in Canada pay 13 to 15% sales tax on a new truck...and everything else...but we get free medical care.

On the whole, I think its a wash..US medical costs the earth, ditto medical insurance. You do have to go to the doctor/hospital if you are sick, you do not have to buy a new truck unless you want one.

PS Canadian cars and trucks cost a lot more at retail than in the USA. Count your blessings, Tex

 

[Steppenwolfe]

Taxation without representation. We should all go free and make the lobbyists pay an access fee.

 

[murphy1244]

This tax is something different has more to do with environmental people in Washington than local. Will show up nationwide soon

They took this to court in Cleveland and the Sewer dept. lost and now has to repay the taxpayers back.

 

[SPIKER]

:Lets see do quick ballpark figuring:

Fed Income taxes, somewhere around 33% that I pay, then SS is ~8% my State Income tax ~4%, County School income Taxes 1.75%, City I work in 1.5% (total INCOME taxes 48.25% of my INCOME is taxes)

the Property Taxes (rate per 1000 value)
State Property tax rate $74.50/1000
County rate $9.40/1000
Township rate $6.10/1000
Fire Dept rate $5.50/1000
Local School rate $49.40/1000
JVS School rate $4.10/1000
Other tax rates $55.70/1000
and Ohio River Flood abatement taxes ~12.50/10 acres of land in CAUV

Those Property Taxes hit me for ~2100/year on my place ~ 4.25% of my income (so around 52.5% of my income ate by taxes.)

Then County Sales taxes 7.25%, (on everything but Food) so figure I spend 10K on expenses that would mean ~ 725.00 or 0.7% of my income. (overall taxes now up to ~53.2% of my income ate by taxes)

Now for Car plates I spend ~$210/year, & spend maybe 2K in Gasoline between the cars & farm which 28cents/gal is taxes
Insurance and Medical probably additional 4500/year

SO overall I'm paying probably at least 55% of my income out in taxes at bare minimum as I am sure I have forgotten some somewhere & if ya add in the Insurance/Medical insurance (mandated by Gov.) It would easily push that to 60% of my income lost to Government MANDATES Taxes and the like.

Mark

 

[Loren49]

:Lets see do quick ballpark figuring:

Fed Income taxes, somewhere around 33% that I pay, then SS is ~8% my State Income tax ~4%, County School income Taxes 1.75%, City I work in 1.5% (total INCOME taxes 48.25% of my INCOME is taxes)

the Property Taxes (rate per 1000 value)
State Property tax rate $74.50/1000
County rate $9.40/1000
Township rate $6.10/1000
Fire Dept rate $5.50/1000
Local School rate $49.40/1000
JVS School rate $4.10/1000
Other tax rates $55.70/1000
and Ohio River Flood abatement taxes ~12.50/10 acres of land in CAUV

Those Property Taxes hit me for ~2100/year on my place ~ 4.25% of my income (so around 52.5% of my income ate by taxes.)

Then County Sales taxes 7.25%, (on everything but Food) so figure I spend 10K on expenses that would mean ~ 725.00 or 0.7% of my income. (overall taxes now up to ~53.2% of my income ate by taxes)

Now for Car plates I spend ~$210/year, & spend maybe 2K in Gasoline between the cars & farm which 28cents/gal is taxes
Insurance and Medical probably additional 4500/year

SO overall I'm paying probably at least 55% of my income out in taxes at bare minimum as I am sure I have forgotten some somewhere & if ya add in the Insurance/Medical insurance (mandated by Gov.) It would easily push that to 60% of my income lost to Government MANDATES Taxes and the like.

Mark

According to your numbers you provided you would pay about $20,470 per 100,000 of assessed value? Is this correct?

Loren

 

[PILOON]

Just wait guys, now that gas prices are falling, gov't will need a new source of revenue as that tax is a huge % of their income.

 

[smstonypoint]

:Lets see do quick ballpark figuring:

Fed Income taxes, somewhere around 33% that I pay, then SS is ~8% my State Income tax ~4%, County School income Taxes 1.75%, City I work in 1.5% (total INCOME taxes 48.25% of my INCOME is taxes)

Mark

To pick nits, is the 33% your marginal tax rate? For 2014, the 33% marginal tax rate applies to incomes of $226,851 to $405,100 for married couples filing jointly. Your average rate would be less than 33% due to the lower tax rates on lower income brackets. You are making really big bucks if your average rate is 33%. Also, there is a limit on your income that is subject to SS taxes -- $117,000 in 2014.

On the other hand, you didn't mention capital gains taxes. If you are in the 33% marginal rate bracket, the capital gains tax rate is 15% in 2014.

Taxes on Income and Capital Gains for 2014

Steve

 

[Steppenwolfe]

Let's face it. There is a place setting at your table for the Government. They eat first, and always get seconds. Heck, I think they even take the leftovers...