Tax Facts

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Taxes have become so much a part of our lives we often fail to recognize them when we see them.  Government agencies at all levels have an insatiable thirst for additional funds and government finds unique ways to generate those funds - out of our pockets.  Consequently, the size of government has become tremendous.  Now, to be fair, we taxpayers are at fault for three reasons:

(1) We do not pay attention to how much taxes are being collected

(2) We do not pay attention to how our tax revenues are spent and

(3) We continue to demand more and more services from an inherently inefficient government.

This web page was developed to show how pervasive taxation is in this country ... a country that was founded because of its citizens outrage over taxation by England.

Let's examine a few FACTS!

FACT: The Federal Government's expected income for 2006 (the latest data available) is $2,177,600,000 -
That's $2.2 TRILLION DOLLARS!!!   Let's look at what just ONE trillion dollars look like.

Question:

If you were to spend $1,000,000 a day, every day of the year, how long would it take you to spend a Million dollars?   A Billion Dollars?   A Trillion Dollars?

Answer:

  •    1day at $1,000,000 per DAY = ONE Million Dollars

  •    2 years, 9 months at $1,000,000 per DAY = ONE Billion Dollars

  •    2,739 years at $1,000,000 per DAY = ONE Trillion Dollars

    •           How much was that budget again?


    Question:

    If you were to stack ONE HUNDRED DOLLAR BILLS in one stack totalling just ONE Trillion Dollars, how high would that stack be?

    Answer:

  •    More than 552 MILES high.
              Note: Assumes a bill thickness of .0035"



    • Question:

    If you were to lay ONE HUNDRED DOLLAR BILLS end to end totalling just ONE Trillion Dollars, how far would that ribbon of bills reach?

    Answer:

  •    More than 39 times around the earth at the equator.
              Note: The length of a bill is 6"



    • FACT:  Government will get the bulk of it's revenues in FY 2006 from five sources:
                   Source: U.S. Office of Management and Budget, Historical Tables, annual.



  •    Individual income taxes
    		• $ 966,900,000,000
  •    Social Security and Medicare taxes
    		• $ 818,800,000,000
  •    Excise taxes (Gasoline, alcohol, tobacco)
    		• $   75,600,000,000
  •    Corporation income taxes
    		• $ 220,300,000,000
  •    Other taxes
    		• $ 96,000,000,000

  •     TOTAL
    		• $2,177,600,000,000


    Note:   As you can see, the revenues collected comes from individuals - that's YOU!  Even the taxes paid by corporations are passed on to YOU in the prices they charge for their products.



    FACT: Taxes can be found everywhere. Let's take a look at some other taxes we pay.  They may be called "fees" but they are taxes none-the-less.  Take a look at your Phone Bill, your Cable TV Bill, your Utility Bills and you'll begin to see how the dollars add up in addition to the taxes you paid above.  Here are a few representative samples.  Note: Some local and state fees may not be applicable to your location ... others that you do pay may not be shown here.


  •   Telephone Bill:
    •   Federal Tax
      State Tax
      Local Tax
      Special 911 Tax
      Federal Universal Service Fee
      State Universal Service Fee

  •   Long Distance Carrier Bill:
    •   Federal Tax
      Telecommunications Tax
      County Sales Tax
      Universal Connectivity Fee
      State Universal Service Fee

  •   Cellular Phone Bill
    		•
      Federal Excise Tax
      State Excise Tax
      County Sales Tax
      Federal Universal Service Fee
      State Universal Service Fee

  •   Cable TV Bill
    		•
      Franchise Fee
      Sales Tax
      FCC Fee

  •   Water Bill
    		•
      Sales Tax
      Franchise Fee
      Water Protection Fee




    Want to talk about SALES TAXES on virtually everything you purchase?
          (Between 4 and 7.5% depending on your state, PLUS whatever the local tax rate is)

    Or maybe GASOLINE TAXES?
         (18.4 cents per gallon federal tax PLUS state taxes ranging from 7.5 to 29 cents per gallon)  That adds $4 - $8 to the average fillup.

    How about STATE INCOME TAXES?
         (Between 1.5% and 11% depending on which state.  Citizens in 43 states pay a state income tax - those in AK, FL, NV, SD, TX, WA and WY do not).

    Then there is the LUXURY TAX on vehicles and the EXCISE TAX on TIRES, SPORT FISHING EQUIPMENT, BOWS AND ARROWS, and dozens of other products.

    And don't forget PROPERTY TAXES, ESTATE TAXES and CAPITAL GAINS TAXES.


    The single largest expense you will pay in your lifetime is Taxes.  Taxes represent more expense to you than your home, automobile and food bill combined.  This chart shows that you work 123 days to pay for the taxes you owe compared to how many days you work for other expenditures you make each year.



    Thanks to the Tax Foundation for use of this chart.

    Makes you want to start paying attention doesn't it?


    Data Updated with latest available info on August 10, 2005