If you are becoming frustrated with the spending of OUR money that your local, state and federal governments seem to be willing to make....take heart. There is a possible solution that is available to most everyone....if you are willing to do it.
But let's start with an example using GE (General Electric) and their 2010 financials. The total revenue for GE was listed as $150.2 Billion in sales. The net profit was $14.2 Billion and taxes amounted to $1.05 billion. Now I am glad they chipped in with slightly more than a Billion in tax money....but let me do some calculations. That tax amount divided into total revenue is only 0.7%. That's a very low rate and the main reason is deductions (legal and allowed deductions). These are expenses incurred by the corporation (GE) while in pursuit of a profit. $136.0 Billion in expenses and deductions. The tax rate on the net profit is only 7.6%.
Now look at me and my taxes in 2010. I am not going to share my exact family income but dividing total federal taxes into total revenue, my rate was 18.19%.
GE= 0.7%
Dan= 18.19%
What's wrong with this picture? Well there's nothing "wrong" with it. It is simply that businesses can deduct items used in the pursuit of a profit that individual employees can't. Businesses are using the legal tax codes to deduct items and therefore not pay tax on those costs. But there is hope for the consumer.
One solution: Start a Home Based Part Time Business.
Your cell phone, your cell service provider, your computer, your mileage, your internet provider, your rent, your house payment, your utilities, (all of which you are paying now whether you own a business or not) and on and on will become totally or partially and legally deductible from your income.....IF YOU HAVE A HOME BASED BUSINESS. Please check with your own accountant for what is and is not deductible.
I urge everyone to have a part time home business for the deductions and the income that can be generated. I can even help you get one started.
For your financial health, please think about your taxes, possible deductions, and starting a home based part time business!