“Flabbergasted” About Taxes (Not What You Think)
Since you’re reading this, we assume death hasn’t visited you. But taxes have. A reader writes:
“I am flabbergasted every time I read about Americans complaining about taxes. It’s ridiculous. Americans don’t like paying taxes and in that sense they are no different from any other population.
“Why don’t you check out ‘Tax Freedom Day’ for all the industrialized countries? I bet you will discover that Americans have one of the earliest tax freedom days.
“The fact is that compared to the amount the federal government spends, the taxes collected will never be enough to cover its expenditures. It [will] never change until citizens get a more realistic understanding of the role of government.
“If you want Cadillac services… be prepared to pay for a Cadillac. As it stands now, people want Cadillac services but they only want to pay for the cheapest Ford.”
More on Tax Freedom below.
In the meantime — in light of Tax Day today — what was your experience filing 2018 taxes? Think the new tax code made much difference in your tax liability, for better or worse?
Your Rundown for Monday, April 15, 2019:
The Cost of Being Human
The reader above asked about America’s “Tax Freedom Day”.
According to the nonpartisan Tax Foundation: “Tax Freedom Day is a significant date for taxpayers and lawmakers because it represents how long Americans as a whole have to work in order to pay the nation’s tax burden.” Tax Freedom Day accounts for federal, state and local taxes.
This year, Tax Freedom Day falls tomorrow, Apr. 16 — three days earlier than it did last year. (Keep in mind, this doesn’t include how many days Americans would need to work in order to cover federal budget deficits for the year; in that case, real tax freedom would land on May 8 this year.)
As for how the U.S. stacks up to other industrialized countries in terms of its tax burden, in 2015 the Tax Policy Center reported the U.S is ranked thirtieth among a basket of 35 industrialized countries. In first place? Denmark. Ranked below the U.S. are Korea, Turkey, Ireland, Chile and Mexico.
But that’s not the complete picture…
Americans paid more in taxes than they did for food, shelter and clothing combined. So more in taxes than the cost of simply covering basic living expenses.
Market Rundown for Mon. April 15, 2019
S&P 500 futures are at 2,912.75.
Oil’s down 43 cents to $63.46 for a barrel of WTI.
Gold’s lost $9.40 to $1,285.80 per ounce.
Bitcoin is down $14 to $5,151.60.
Have a good day. We’ll circle back tomorrow.
For the Rundown,