Friday, November 5, 2010

An Observant Briton Corrects an Ignoramus

In the comments section of Las Vegas Tunnel People (Daily Mail, November 4), Mark from London responds to a fool who thinks we Americans are being under-taxed:

Quote: "This is what happens when you have low taxes.....".
The US does not have 'low taxes'. It's a myth.
I lived in Florida for many years: $8,000/year property tax. $12,000/yr health insurance. So, the first $20K earned (....AFTER deductions) doesn't even pay for a glass of water. And before anyone states that health insurance is not a tax, you're right. At those rates (and believe me that wasn't the best cover), it's State sanctioned extortion.
While their Federal income tax may be 25-28% for most people, once FICA, State tax, (and local taxes in some instances), annual property tax and the myriad of licenses, fees, levies etc. (all 'taxes' by any other name) is deducted, the rate is anything but low. You should see their phone bills. Some even include a 'war tax' - no kidding.
I think the term is nickle and dimed to death but the 'low tax" illusion still seems to be perpetuated.

And Mark isn't even taking inflation into account, nor the horrendous costs on production and barriers to capital formation imposed by bureaucratic regulations. All that crap is what's driving the insane medical care prices he complains about.

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