Hidden tax
From Wikipedia, the free encyclopedia
A hidden tax is a tax that is not visible to the taxpayer. These taxes can raise prices of goods and lower salaries for wokers. Hidden taxes, although hidden, can decrease the purchasing power of individuals significantly.
Many kinds of tax behave like hidden taxes:[1]
- Corporate income tax
- Because of this tax, shareholders and employees get less salary.
- Tariffs or import taxes
- It lowers competition by raising the price of imports and products produced outside.
- Sin taxes
- Taxes on alcohol and cigarettes are highly regressive.
- Travel taxes
- Utilities taxes
- According to a 1998 study, taxes take up 48% of the price of gasoline. [1][2]
- Inflation tax
- It is a regressive hidden tax.[3]
Contents |
[edit] United States
One study suggested that hidden taxes account $2,462 per capita.[1]
[edit] Hidden tax
Quintiles of Household Cash Money Income, Calendar Year 2004[4]
|
Bottom 20 Percent |
Second 20 Percent |
Third 20 Percent |
Fourth 20 Percent |
Top 20 |
|
|
Total Federal Taxes |
38.9% |
55.7% |
61.5% |
64.4% |
70.2% |
|
Income |
4.0% |
12.0% |
17.6% |
22.6% |
35.7% |
|
Payroll |
21.2% |
30.6% |
32.0% |
30.4% |
22.5% |
|
Corporate Income |
6.3% |
8.4% |
8.2% |
8.2% |
8.1% |
|
Gasoline |
1.6% |
1.2% |
1.0% |
0.8% |
0.6% |
|
Alcoholic Beverages |
0.8% |
0.4% |
0.4% |
0.3% |
0.2% |
|
Tobacco |
1.2% |
0.6% |
0.3% |
0.2% |
0.1% |
|
Diesel Fuel |
0.2% |
0.3% |
0.3% |
0.3% |
0.3% |
|
Air Transport |
0.5% |
0.4% |
0.4% |
0.4% |
0.4% |
|
Other Excise |
1.0% |
0.6% |
0.4% |
0.4% |
0.2% |
|
Customs, Duties, etc. |
2.2% |
1.2% |
0.9% |
0.8% |
0.5% |
|
Estate & Gift |
0.0% |
0.0% |
0.0% |
0.0% |
1.7% |
[edit] References
- ^ a b c Hidden Taxes: How Much do You Really Pay?
- ^ Ed Brown, “Where Your Gas Money Goes,” Fortune, April 27, 1998.
- ^ The Inflation Tax
- ^ Gerald Prante and Andrew Chamberlain, "Who Pays Taxes and Who Receives Government Spending? An Analysis of Federal, State and Local Tax and Spending Distributions, 1991-2004," Tax Foundation Working Paper, No. 1, March 2007, available at [1]
