Taxes

[Pete]

I often wonder if the average person really knows how much taxes they pay. When you mention taxes most people immediatly think of income tax, but that is actually only part. I am amazed at the little hidden taxes many do not even see. How many people see the sticker on gas pumps that show that about .46 cents a gallon is taxes? 46 cents of $1.80 is a pretty hefty rate. Think of just how many gallons of gas are pumped everyday in SOMD alone.

Taxes I notice both federal and state:

Phone bill has numerous taxes added on.

Cable TV

Hotel rooms when on travel have anywhere form $7-15 tacked on in taxes.

Electric bill has a ton of little taxes added on.

A buck a pack on smokes.

What other taxes do you see? Lets start a list to see just how deep the government is in our pockets besides income and property taxes.

 

[FromTexas]

Property (real estate and otherwise)

Toll Road

Licensing (of any sort)

Permits

Registration

Sales (5% MD - was 8.25% in TX)

FICA

Social Security

Medicare

Airport

Stock transfer

franchise


And don't forget that taxes aren't just the tax cost but the preparation cost. This is especially true with income taxes.

 

[Pete]

Another thing that I see that is BS is how they calculate the sales tax on vehicles when there is a trade-in involved.

In every other state I have been in when you buy a vehicle they take the allowance on your trade and subtract it from the price of the new one and the tax is calculated on the difference. IE:

New vehicle price: $35,000
Trade-in allowance: $20,000
Difference $10,000 X 5% = $500 sales tax.

You already paid sales tax on the vehicle you are trading in why pay it again.

MD does it like this:

New vehicle cost: $35,000
Sales tax $ 1,750

A $1,250 bonanza for the state on something that has already been taxed once.

 

[Pete]

liquor

beer

capital gains tax


Like to in the lottery? A million bucks sound good? Well by the time the capital gains is figured on the million bucks you would be lucky to get $400,000

 

[kwillia]

And it even sux if you have money and want to give it away... don't forget gift tax and estate tax.

 

[jlabsher]

Booze: 6 pack of beer is $.37 ($.05 MD & $.32 Feds), 1 Liter of booze is $3.25 ($.40 MD & $2.85 feds). Now you pay sales tax on top of that in MD, so you're paying tax on the tax!

Gasoline is $.235 state and $.185 fed per gallon.

 

[Vince]

Here's another one on vehicles Pete. If you buy a car out of state and get it licensed out of state, and you want to license it in Md, you have to do it within a certain amount of days upon moving into MD. If you don't get it registered in Md within 30 or 60 days of residency (Md drivers license) you have to pay Md the vehicle tax all over again.

 

[Pete]

Originally posted by Vince
Here's another one on vehicles Pete. If you buy a car out of state and get it licensed out of state, and you want to license it in Md, you have to do it within a certain amount of days upon moving into MD. If you don't get it registered in Md within 30 or 60 days of residency (Md drivers license) you have to pay Md the vehicle tax all over again.

That is what is hitting me on the trailer. You have 60 days to get a break on the tax and pay $100. If you wait after 60 days it is 5% of the book value. I am paying a $250 penalty for not thinking of doing my trailer when I did my truck.