Hidden Taxes: A True Burden on America

Posted by Paul Briggs

When we have a deficit or economic imbalance at the Local, State or Federal level, Liberals are always quick to point at the Revenue side of the equation. Over time, these policies have led to so many hidden taxes on society, that even I forget just how many there really are.  The photo to the left reminded me just how many times we are duped when purchasing something in our economy. Arguably, I wonder if the leftists even realize how this works, since they all appear to be economically challenged.  Where are all these magical revenue sources that we don't think about in our daily lives?

First there is, obviously, the gas taxes.  State gas taxes range from $0.08 (Alaska) to $0.50 per gallon (New York) and everywhere in between. At the Federal level, there is an additional $0.184 per gallon tax.  Meanwhile, those evil oil companies are raking in.....are you ready... a whopping $0.07 per gallon in profit.  Yet, the left chooses to demonize the oil companies because of their record profits.  Never mind that the world is using more fuel.  Yet, they complain about the prices of gas, when, in reality, gas prices could be dropped significantly with a few actions.  As of 2011, State and Local taxes totalled $41,227,355,000!!  If you add the Federal Tax, this grows even larger!  So, who's really gouging us?  Remember, oil company profits include all sales around the world, not just the US.  The taxes are only collected in the US.

Corporate taxes also impact consumers in our country.  At a 35% clip, our Federal corporate taxes are some of the highest in the world.  Assuming the net tax is 35%, consumers get hit with this cost, as it is passed through to the purchaser of the good or service.  Obviously, this varies based upon the favors granted by Congress through the tax code.  But, just imagine if everything worked out to a 35% increase due to taxes alone.  This is before accounting for State and Local taxes.  Yet, again, Liberals continually slam corporate profits for "being high".  Those profits are taxed, spent, reinvested or otherwise used in our economy, allowing them to be taxed again.  Yet, how many companies do you know that charge a 35% profit margin on their product or service?

"With the help of Sageworks, a Raleigh, N.C.-based accounting consultancy and private-company data provider, Forbes assembled a list of the 20 most profitable types of businesses, on a pretax basis. At No. 1: offices of Certified Public Accountants, with an average pretax margin of 16.5%. Offices of physicians (except mental health specialists), which clock an average 10.4% margin, brought up the rear."

Notice that the above is pretax, not even including the 35% Federal tax yet.  Again, the government makes enormous amounts of us in the products or services we purchase. Should our leaders determine that lowering the Corporate tax rate is a smart move (which it is), we will see a slight decline in prices in inflation adjusted dollars.

A quick Google search will yield over a million links to State Fee Schedules.  All these Fees are paid in numerous ways, sometimes hidden, from consumers.  Sure, we all know what we pay for filing fees, document fees, etc.  However, have you ever thought about all the fees that your local business pays and passes the cost on to the consumer?

Hidden taxes are so numerous that it would be hard to account for all of them.  The following link has an impressive list, however, even I see some missing: http://godfatherpolitics.com/942/47-different-taxes-we-pay/

1. Ad Valorem Tax
2. Building Permit Tax
3. Commercial Driver’s License Tax
4. Cigarette Tax
5. Corporate Income Tax
6. Dog License Tax
7. Excise Taxes
8. Federal Income Tax
9. Federal Unemployment Tax (FUTA)
10. Fishing License Tax
11. Food License Tax
12. Fuel Permit Tax
13. Gasoline Tax (42 cents per gallon)
14. Gross Receipts Tax
15. Hotel/Motel Tax

16. Hunting License Tax

17. Inheritance Tax
18. Inventory Tax
19.  Liquor Tax
20. Luxury Taxes
21. Marriage License Tax
22. Medicare Tax
23. Personal Property Tax
24. Property Tax
25. Real Estate Tax

26. Rental Car Tax
27. Service Charge Tax
28. Social Security Tax
29. Road Usage Tax
30. Sales Tax
31. Recreational Vehicle Tax
32. School Tax
33. State Income Tax
34. State Unemployment Tax (SUTA)
35. Telephone Federal Excise Tax
36. Telephone Federal Universal Service Fee Tax
37. Telephone Federal, State and Local Surcharge Taxes
38. Telephone Minimum Usage Surcharge Tax
39. Telephone Recurring and Non-recurring Charges Tax
40. Telephone State and Local Tax
41. Telephone Usage Charge Tax
42. Utility Taxes
43. Vehicle License Registration Tax
44. Vehicle Sales Tax
45. Watercraft Registration Tax
46. Well Permit Tax
47. Workers Compensation Tax

Yet, Liberals claim that our taxes are at the lowest point in 50 years.  Now, I cannot find a study that calculates all of these taxes into our daily lives, and, in reality, they don't come through as taxes. But, whether the tax is direct or indirect, it is still a tax on society.  An article, aptly titled Government Hidden Taxes Cost Every Family $14,768 a Year says it all in the title.  Furthermore, the article explains:

As of 2012, Crews estimated that the cost of all federal regulations exceeded $1.8 trillion, which breaks down to a stunning $14,768 for each U.S. household.

To put that in perspective, consider that most American families pay about half that in federal income tax.

For an example of the typical Liberal argument, just look at this USA Today article from 2010, which makes this claim.

Furthermore, in an attempt to write this, it just reiterates the need for transparency in taxation.  Even the Washington Post understands this:

American taxpayers spend 7.6 billion hours and roughly $140 billion a year to comply with the bewildering thicket of requirements in the federal tax code, according to a report released Friday by a White House advisory board whose members urged Congress to adopt their ideas for simplifying people's lives at tax time.

Personally, I like and dislike different aspects of the proposed Flat Tax and Fair Tax. However, I would be happier with either compared to the mess we deal with right now.  I am very watchful of my family's finances, but it is hard to fathom just where all the waste goes.  Well, of course, we all know that a lot of waste goes to Government!  And, that is my point!  I don't like my hard earned money being wasted, whether by my own family or my government.  So, why do we continue to allow this blind stealing from us?

Don't be mislead by the Left on this issue.  While the evidence is commonsense, the actual studies are lacking and probably nearly impossible to actually compile due to the complexity of our current tax code.  However, this again, would be a strong argument for tax reform that would be strongly supported by the Right through the Center-Left.  As usual, the Liberals would cry foul.  After all, a tax reform of this nature would probably cause more of the 47% to pay more direct taxes.   

Re blogged from Rightist Writings