Tuesday, May 01, 2018

The Incredibly High Cost Of Hidden Taxes

JOHN STOSSEL

The cable bill was the last straw, says Kristin Tate. "That's the one that really made me mad." Comcast included $36 in charges for mysterious things like "utility tax" and "government access fee." That motivated her to research obscure taxes and put what she learned in a new book, "How Do I Tax Thee? A Field Guide to the Great American Rip-Off." Rip-off? Even limited government needs some taxes to fund basic functions. "Yes," says Tate. "But politicians are cowards. Instead of creating a tax, they magically create these little fees (so) they don't have to tell their voters they raised taxes." Voters don't often notice the sneaky taxes. Yesterday was "Tax Day." It was April 17 this year because April 15 fell on Sunday and Monday was Emancipation Day. But by calling April 17 "Tax Day," the media miss the big picture. Income taxes make up less than half the tax most of us pay. We also must pay payroll tax, corporate tax, gift tax, gambling tax, federal unemployment tax, gas tax, cable and telecom taxes, plane ticket tax, FCC subscriber line charges, car documentation fees, liquor and cigarette taxes, etc. People can't keep track. For my latest YouTube video, Tate asked people, "What's your tax rate?" Tourists in Times Square said that they thought they paid about 20%. But they left off the hotel taxes, airline taxes, etc., that push Americans' total tax load to almost 50%. When you pay those hidden taxes, you may assume they go toward useful things, but Tate knows her taxes pay for government waste. Politicians suggest their extra taxes go, not to fund those big salaries and "pensions to-die-for," but to pay for the specific services for which the taxes are named. Tate says that's rarely true. "Cable bills and cellphone bills both have an 'Enhanced 911 Fee.' Consumers were told 911 fees were necessary to make upgrades to emergency communication needs. (But) after it was updated, instead of taking away the tax, it just stayed there."...MORE

No comments: