June Smith
The Government takes as much
of our money as possible. Now they are telling us how we spend what’s left
over.
The U.S. Department of
Labor, U.S. Bureau of Labor Statistics latest—2009, which seems about how long
it would take a U.S. Department of Anything to produce something— Consumer
Expenditure Survey details “U.S. Consumer Unit Expenditures” and “average
annual expenditures and percent totals.”
Here are the percentages by
category, fellow “Units”:
·
34.1%: Housing (shelter; utilities, fuels and public services; household
operations; furnishings; and housekeeping supplies
·
17.6%: Transportation (vehicle purchases; gas, oil, and maintenance; and
other transportation expenses)
·
12.4%: Food (at home and away from home)
·
10.8%: Insurance, Pensions, Life and other personal insurance
·
5.7%: Healthcare
·
5.4%: Entertainment
·
3.8%: Apparel and Services
·
3.7%: Cash contributions
·
1.9%: Education
·
1.6%: Miscellaneous
·
1.2%: Personal Care Products and Services
·
0.9%: Alcoholic Beverages
·
0.7%: Tobacco
·
0.2%: Reading
Added up, it totals 100%.
Missing from the big pie
chart is any mention of the percentage of income taxes paid by the average
“U.S. Consumer Unit”—“expenditures” also known as the mandatory payments
legally withheld from gross income by the Government, states and paid to local
municipalities.
What
a major victory it was for the Government when mandatory withholding was
established in 1943. If the average “Unit” had to calculate and make quarterly
tax payments, write a check payable to the U.S. Treasury, put a stamp on it and
mail it, there might be a another Tea Party like the one in Boston.
But
I digress…
We use net income, after tax
dollars (ATDs), what’s left over after Uncle Sam gets his piece of the pie
to pay for our “Unit Expenditures” and to pay for additional taxes on taxable
items, varying by state.
We’re not just paying at the gas pump. We’re paying for
other imposed taxes with ATDs, directly or indirectly. Here a tax, there a tax,
everywhere there’s a tax, tax, tax.
This
compilation
of taxable items from www.infotaxsquare.com is an eye-opener:
“GENERAL MERCHANDISE:
Automotive supplies, Ballpoint pens, Bath linens (towels,
washcloths, etc.), Bathroom Scales,
Batteries, Bed linens (sheets, pillowcases, etc.), Books
(except for serial comic books and crossword puzzle magazines), Calcium
fluoride (for melting ice), Candles, Carpet fresheners, Chalk, Charcoal, Christmas trees (live and artificial) and
Christmas tree ornaments, Cigarette lighters, Clock radios, Clocks, Clothing
(gloves, hats, socks, shoes, underwear, etc.), Coffee makers, Comic books
(non-serial), Compact discs, Computer discs, Cookbooks, Cookware, Correction
fluid (e.g., White-Out), Crayons, Cutlery, Date books, Diaries, Dish detergent,
Disposable cigarette lighters, Envelopes, Erasers, Flashlights, Flatware,
Flower pots. Flower seeds, Folders, Footwear (all types), Furniture (e.g.,
folding chairs), Furniture polish, wax, etc., Garden furniture, seed packets, tools and supplies, Gift
wrap, Glue, Greeting cards, Highlighters, Hosiery, Household cleaners and
deodorizers, Housewares, Ice (including ice cubes, ice chunks, ice blocks, and
chipped ice), Ink, Ink pens, Kitchen appliances and utensils, Lead pencils,
Lighter fluid, Loose-leaf binders and paper, Lunch boxes, Magic Markers, Manila
folders, Mechanical pencils, Memo pads, Microwave cookware, Notebooks, Paper
clips, Paper plates and cups, Pens and pencils, Photography equipment
(disposable cameras, instant cameras, still cameras, etc.), Photography supplies
(film, flash bulbs, flash cubes, etc.), Picnic Accessories (jugs, flatware,
cutlery, etc.) and baskets, Plants, Plastic ware, Playing cards, Radios,
Reading glasses (non-prescriptive), Rock salt, Room fresheners and deodorizers,
Scales (kitchen or bathroom) Sewing notions (needles, thread, thimbles, etc.),
Shoe laces, Shoes, Silverware, Snow shovels, Staplers and staples, Stationery,
Stereos, Sunglasses (non-prescription), Table linens, Tableware, Thermos
bottles, cups, jars, etc., Torch lights, Toys, Underwear, Video cassette
recorders and tapes, Watches, Wrapping paper, and Writing tablets.
“COSMETICS &
TOILETRIES
After shave creams, lotions, moisturizers and powders,
Almond meal and almond paste, Antiperspirants and deodorants, Astringents, Bath
crystals, milks, oils, powders, salts, tablets and bubble bath, Bay rum, Beauty
creams, Bleaching creams and lotions, Body powders, Bouquet liquids, Breath
fresheners and sweeteners, Brilliantine, Cleansing creams and lotions, Closet
deodorants, Cold creams, Colognes, Combs, Compact refills, Cosmetic stockings,
Cuticle removers and softeners, Dental floss and dental cleaners, Depilatories,
Dusting powders, Eau de cologne, Essences and extracts, Exfoliants, Eye shadow,
Eyebrow brushes, dyes, and pencils, Eyelash dye and mascara, Face cream and
lotions, Face packs, powder and facial oil, Finger wave lotions, Floral
essences, Foundation makeup, Freckle remover, Fuller’s earth, Hair bleach,
brushes, combs, dressing, dye, gel, lotion, and oils, Hair pomade, remover, and
restorative, Hair rinse, spray, straightener, tint, and tonic, Hand cream and
lotion, Henna, Lavender, Lip ice, pomade, lipstick, lipstick refills and liquid
lip color, Liquid face powder, liquid stockings, Manicure preparations,
Mascara, Mask preparations, Massage cream, Mittens containing toilet powder,
Moisturizers, Mousse, Mouthwash, Mustache wax, Nail bleach, brushes, enamel,
lacquer, polish, polish remover and whitener, Olive oil (if scent or color
added), Orris root, Pancake makeup, Perfume, perfume kits, and perfume
novelties, Permanent wave neutralizers, waving cream, waving kits, and waving
lotion, Peroxide (if for use in bleaching the hair or for other toiletry
purposes), Petroleum jelly (if scent or color added), Plucking cream, Pore cleanser,
Powder base, Pumice stones, Rock salt bath crystals, Rose water, Rouge, Sachets
(containing powder or other aromatic material), Shampoo (non-medicated),
Shaving cream and shaving preparations, Skin balm, Skin bleach, cream, lotion,
oil, tonic, and whitener, Stain removers, Talcum powder, Texture cream, Tissue
cream, Toilet ammonia, cream, lanolin, and water, Tooth powder, toothpaste and
toothbrushes, Vanishing cream, Water softener, Wave set, Witch hazel, and Wrinkle-concealing
preparations
“MEDICAL EQUIPMENT
& SUPPLIES
Air conditioners, purifiers and cleaners, Athletic supports,
Basins, Bathtub safety rails and safety seats, Bed baths, Blackhead removers,
Braille books and games, Cast cutters, Cotton (unsterile) and unsterile cotton
balls and swabs, Dehumidifiers, Dental Floss, dental cushions, and dental
liners, Ear plugs and stopples, Emesis basins, Exercise equipment, Fans,
Feminine hygiene syringes, Foot baths, Funnels, Garter belts, Gloves, Grab
bars, Heaters and humidifiers, I.D. bracelets (medical), Massage devices, Mattress
covers, Medical charts and diaries, Nose clips and shields, Nursers (baby
bottles) and nursing pads, Orthopedic mattresses, Over bed tables, Pads for
eyeglasses, Parallel bars, Plaster bandages and splints, Plastic sheets, Poison
records, Posture shorts and support chairs, Prep brushes (surgical), Pumice,
Rubber gloves and sheets, Sanitary napkins, Skin removers, Straws, Sun lamps
and sun lamp goggles, Sunglasses (non-prescriptive), Tongue blades and
depressors, Tweezers, Ultraviolet lamps, Veterinary equipment, instruments and
supplies, Vibrators, Wheelchair trays, Whirlpool baths, concentrate, and pumps.
“FOOD & BEVERAGES
Beer, Bottled water, Candied apples, Candy, confectionery
and candy bars, Candy jellies, Caramel, caramels, and caramel-coated popcorn,
Carbonated beverages and water, Chewing gum, Chocolate, chocolate candy,
chocolate-coated nuts, raisins, and pretzels, Coated candies and coated candy,
Cocktail mixes and Collins mixer, Cranberry juice cocktails, Cream candies,
Dietetic candy, carbonated beverages, and soft drinks, Fountain drinks (e.g.,
sodas, milkshakes, etc.), French burnt peanuts, Fruit drinks containing less
than 70% natural fruit juice, Fruit nectars and punch less than 70% fruit juice,
Fudge, Gatorade, Glazed fruit, Hard candy, Hi-C, Honey-roasted peanuts, Ice and
ice cubes, Ice cream cones and sodas, Jelly beans, Jordan almonds, Kool-Aid,
Licorice, Maple sugar candy, Mineral water, Nougats, Nuts (chocolate or candy
coated), Orange Crush, Pet food and supplies, Seltzer water, Soft drinks,
Sugar-coated nuts and raisins, Toffee, Vegetable plants and seeds used to grow,
Vichy water, Water, and Yoo Hoo (assorted flavors).”
Here is a sampling of a few other taxes and fees we pay with
ATDs:
Mobile phones: a Federal Universal Service Charge,
Regulatory Recovery Fee, State Gross Receipts Surcharges, the 911 Service Fee,
and a State Telecom Tax;
Energy: State tax surcharge;
Cable: Sales tax, FCC Regulatory Fee, Franchise Fee, and a
911 fee.
The Regulatory Recovery Fees paid on mobile phones, cable
service, etc., is not a tax or government-mandated charge; rather, it is
imposed by the service provider to defray regulatory costs such as state
universal services, relay services, and certain state and local utility fees.
Whether our
“U.S. Consumer Unit Expenditures” align with
the
Consumer
Expenditure Survey calculations and regardless of what income tax
bracket we are assigned, taxes in any form must be paid.
The first bite, taken from gross income, may be the worst,
but the bleeding continues from all the other taxes and fees we pay.
And it isn’t about to change. Chumming for our ATDs
continues. There are always more tax increases, universal service charges,
fees, etc., on the horizon.
By the way, there is no such thing as an average U.S. tax
bracket. Taxpayers pay the tax rate determined by gross income, minus the
allowable deductions.
Taxes are imposed
mandatorily for individuals and range from 0-35% federally and 0-11% by the
state.
If you don’t know there are penalties for not filing tax
returns, filing late returns, and that certain “intentional” failings are
subject to jail time, you’re either in big trouble or living in one of the
countries with no extradition treaties with the U.S.
According to the Internal Revenue Service’s official boowah,
bushwah, blah blah, “The failure-to-file penalty is calculated based on the
time from the deadline of your tax return (including extensions) to the date
you actually filed your tax return. The penalty is 5% for each month the tax
return is late, up to a total maximum penalty of 25%. The percentage is the tax
due as shown on the tax return. If your tax return is more than five months
late, simply multiply your balance due by 25% to calculate your failure to file
penalty.
“The failure-to-pay penalty is calculated based on the
amount of tax you owe. The penalty is 0.5% for each month the tax is not paid
in full. There is no maximum limit to the failure-to-pay penalty.
The penalty is calculated from the original
payment deadline (the original April 15
th filing deadline) until the
balance due is paid in full.
“Interest is calculated based on how much tax you owe.
Interest rates change every three months. Currently, the IRS interest rate for
underpayment of tax is 4% per year. The interest is calculated for each day
your balance due is not paid in full.
“IRS interest rates are variable and are set quarterly”
because “they” make the rules.
Taxing times and circumstances, indeed.
June Smith is the widow WBAL talk show
host and Sun columnist, Ron Smith, who posthumously received an Emmy® for his
lifetime achievement in television and radio at WBAL in Baltimore, MD. Smith
was a media titan in the central Maryland area and beyond for almost forty
years. Mrs. Smith’s tribute website honoring his legacy is www.FriendsofRonSmith.com. She is working diligently to raise one
million dollars for the Ron Smith Pancreatic Cancer Research Fund at Johns
Hopkins. Her email is june@friendsofronsmith.com.
More below the fold.