YOUR VIEW: How well do you know your taxes?

Published on Wednesday, 27 January 2021 20:53
Written by

By RICHARD BARANOWSKI

To the Editor:

Federal and state Democrats will be meeting soon to raise your taxes.

Do you really understand how much money in taxes you are currently paying? Let me help with a little math.

Start with 6.2% in Social Security Tax and 1.45% in Medicare Tax. Add Federal Income Tax that varies by individual, but let’s use 15% as an average. You can pay up to 6+% in CT Income Tax. Add the new Family Leave Tax at .5%. Local property tax for house and cars can easily be 10%, or more, of your income. Renters may not know it, but renters pay the landlord’s property tax via their monthly rent payments, which is loaded for property taxes. When you shop, you pay 6.35% in CT Sales Tax. Then there are “special” taxes, like for liquor, etc. And when you gas up your cars you pay both a Federal and CT state tax at the pump. Then there are the hidden taxes, which the government calls “fees”, that go to the government, like car registration, fishing and hunting licenses, camping fees, home improvement permits, gun permits, just to name a few. And don’t forget the government adds on charges (really taxes) for cable TV, phones, Internet, water, gas, electric bills, etc.

I have tried to name only a few hidden “tax” items. I’m certain you could name more. You can easily see that up to 50% of you income goes to the government in one shape or another. No one thinks of this, but all businesses, to survive, must practice cost accounting for their products.

What does that mean? It means the more the Federal, states, and local governments tax them, the higher their products will be priced.

So whether you know it or not, whenever you buy at the grocery store, buy a new car, or whatever and everything you buy, you are paying all the products’ businesses taxes at the register. Remember, businesses do not pay taxes, businesses pass their taxes on to you as consumers. Their taxes are packed into their products, in their cost accounting.

You never see the “tax” amount because it is buried deep into the cost of the product pricing. You pay their taxes, whenever you buy their products. So add that to the 50% you pay directly in some form of “tax.” Now put it all together. Can you see that you may be paying in excess of 50% of your income in some form of “tax”?

Years ago you made less, but kept more. Now you make more, but keep less. Where will this all end? How high will taxes go? Only the Democrats know. Are you ready for the next round of 2021 tax increases? Will it be a toll tax, increases in gas tax, sales tax, income tax or fees? Or a combination of all of them? Watch your disposable income shrink. Year 2021 will be expensive.

Richard Baranowski

Newington



Posted in New Britain Herald, Editorials, Letters on Wednesday, 27 January 2021 20:53. Updated: Wednesday, 27 January 2021 20:56.