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8 Facts About Taxes

8 Facts About Taxes PhotoOnce tax had existed, it was never gone. A lot of people are making jokes out of it to minimize the pain it brings every time they look at their payslips. If you do not know our best friend named “tax” that much, here are some facts about him:

1. The Lucky Ones

Don’t you know that 61% of US companies paid no income tax from 1996 – 2000? Add up 71% of foreign corporations which did not pay any amount of federal income tax. This is what the General Accounting Office had found out when they conducted a study.

That must be a really huge amount of money! What turned out is that average tax payers and working families are paying more than these large companies. This ain’t a fair share indeed.

2.  Unusual tax laws

Here are some of the tax laws in the USA that have been passed and seemed to be a little weird:

  • Taxes on illegal drugs – There are 23 states that do this. Particularly in Tennessee, you have 48 hours to report the illegal drugs that you purchased and get a stamp for it.
  • In Alabama, a 10 cent tax is being charged for a deck of playing cards.
  • In Maine, there is a tax for blueberries. Either you purchase, sell, handle or process blueberries; you have to pay one penny and a half tax per round.
  • In Chicago, “Fountain soda drinks” are taxed at 9% and if your drinks are in a can or a bottle, you’ll be charged of additional 3% for tax.

3.  Too many to read

The US Federal tax code now has 3.8 million words. Since the contents of the tax code are too complex and are not translucent, it was suspected to have special provisions that will benefit a group of influential and powerful people.

4. Top earners

According to an IRS report, the top 400 income earners with an average income of $260 million only paid 17% of their income. This is down from the 30% of the year 1990. Some of these companies make much more gains which don’t count as a taxable income. This could be one of the facts that might piss you off.

5. Tax burden for the rich, middle class and the poor

It was found that the working poor and middle class families have heavier tax burdens than the rich guys. The usual property tax of a millionaire is only for 0.08% of his net-worth.  You will be surprised to know that a middle class family often pays 10% of their net-worth. Some may have found the answer on why the rich got richer and the poor got poorer.

6. Unique

The United States of America is the only country that tries to tax its citizens from their earnings in foreign countries. You may have escaped some worries but US tax will follow you everywhere.

7. Why some companies do business outside of the country?

At 35 percent, the USA has the highest tax rate in the world. This may have caused thousands of companies to move out of the United States and transfer their business to other countries.

8. How to hide tax?

This last fact could be  a very tasteful information. A lot of wealthy people in America are hiding enormous amount of money outside the country in order to escape tax.  As per IMF, a total of 18 trillion dollars are being hidden in offshore banks.