Nestof3 Posted April 14, 2011 Share Posted April 14, 2011 Wow -- that is crazy real estate tax! We pay less than $2,000 for an 1,100 sq ft. house. I guess we're a good state to live in in that regard. Sales tax is 5 %. Our property taxes are $5000 (no land, no extravagant house), we pay 9.985% sales tax, Quote Link to comment Share on other sites More sharing options...
lionfamily1999 Posted April 14, 2011 Share Posted April 14, 2011 I don't know. Property taxes are the price one pays for being a member of the community. Someone has to pay to build and maintain roads, stop lights, public safety officers, gas and sewer lines and provide clean safe water. I can't imagine charging admission to a playground or paying a fee for a library card. My little city has an amazing bike and pedestrian trail system that I'm happy to help contribute to even though my kids are too young to use it yet. I'm a big fan of public transit. Property taxes make a big difference in the quality of life where I live. Christine W My problem with what we pay for property tax is that what they say our stuff is worth is not anywhere near what our stuff is actually worth. Our house alone would be lucky to self for a quarter of what they've got the value at. We've told them time and again, hey if you're willing to buy it for that much we'd sell to you in a heart beat. They laugh and then rob us :D I'm not sure where you live, but where I live about 50% of my property taxes goes to the local (average) school district. So while I struggle to afford buying material for my kids, I am forced to buy school materials for other children. I'm also opposed to the government being able to foreclose on a property for not paying property taxes. :iagree: It should not be an unbearable burden. Quote Link to comment Share on other sites More sharing options...
happypamama Posted April 14, 2011 Share Posted April 14, 2011 (edited) I would mind our federal taxes less if I thought they were being used well. I fully understand that pooling money for some thing is a good plan. I just don't think it's being used very wisely. I don't necessarily mind our state income tax, but I am thinking they could probably be used better too (but they are actively working on that). I don't really mind our local income tax or the county and local property taxes, as I see the good things they're doing with them. I see them maintaining our roads nicely, we have a small but active police force, our fire department is readily available, we have a great public library system, state parks are free (and award-winning, actually), etc. Our local township has also maintained its committment not to raise taxes for over a decade; I appreciate that. I'm not really willing to pay *more* for local taxes (I'd rather pay a separate fee to use the libraries and/or state parks), but I don't really begrudge them. I do dislike the large amount of money that I pay to the school in property taxes every year though. It's relatively small in this area, but still, it's a big chunk of income that I resent paying for someone else's education. The school also gets about 2/3 of the money that we pay in property taxes, so that galls me. While the township decided not to raise their share of the property taxes, the school district sent a letter whining about how short they were for their needs, how their teachers were going to have to have a pay freeze, etc. Well, gee, I teach my kids for a lot less than they do, per kid, and my husband hasn't gotten a raise in multiple years, and he works plenty hard. Not to mention that kids used to learn to read, etc. with not much more than the Bible, so how fancy does the public school really need to get? Edited April 14, 2011 by happypamama Quote Link to comment Share on other sites More sharing options...
joannqn Posted April 14, 2011 Share Posted April 14, 2011 Something that might help you...When I was self-employed, I took the sales tax amount of every payment received and put it in savings. DH is against working for the government for free. That's how he views his responsibility to collect sales tax, do the paperwork to track it, and the hassle involved with forwarding it to the government. So, he refuses to have anything to do with it. Instead he tells his clients what parts are needed and where they can get them (everything needed to make ordering easy) and has them buy it. When it arrives, he does the work of installing it. Of course, he doesn't make any money that would come from markup in ordering and selling the parts himself... Anyway, I'm pretty sure we don't pay federal tax because exemptions, child tax credits, whatever, is more than our tax owed. It was still a shock when DH showed me that our taxable income was about $3,100 and our tax owed was $5,500. Quote Link to comment Share on other sites More sharing options...
kimnc Posted April 14, 2011 Share Posted April 14, 2011 I'm not sure where you live, but where I live about 50% of my property taxes goes to the local (average) school district. So while I struggle to afford buying material for my kids, I am forced to buy school materials for other children. Here I think it is something like 90%. There is a breakdown of where the money goes (by %) on the tax bill. Really steams me when I see it. :mad: I am in favor of a flat tax. Quote Link to comment Share on other sites More sharing options...
Julie in Austin Posted April 14, 2011 Share Posted April 14, 2011 How do you avoid getting whacked by the AMT? :confused: Er, I don't really know except that every year, Turbo Tax tells me we don't have to pay it. Perhaps a combination of three kids, lots of mortgage interest and student loans, and very high charitable contributions? Quote Link to comment Share on other sites More sharing options...
Denise in Florida Posted April 14, 2011 Share Posted April 14, 2011 I would be fine with the amount of taxes I pay if I thought the majority of it was being used responsibly. So, it's not the amount that bothers me, it's where the money is going that bothers me. :iagree::iagree::iagree: If we (as a country) could focus on the basic services and do them well I would be much happier. However, there is no consensus on 'basic services' or 'doing them well' :001_smile:. Quote Link to comment Share on other sites More sharing options...
Joker Posted April 14, 2011 Share Posted April 14, 2011 Wow!! I really didn't realize some pay soooo much in property taxes! We're in FL and I don't think we pay enough. We pay less than 1K in property taxes and our schools get very little. In fact, dh and I vote "yes" every time an increase is on the ballot but it never gets approved. Quote Link to comment Share on other sites More sharing options...
Barb_ Posted April 14, 2011 Share Posted April 14, 2011 Er, I don't really know except that every year, Turbo Tax tells me we don't have to pay it. Perhaps a combination of three kids, lots of mortgage interest and student loans, and very high charitable contributions? Actually, reading the article I'm reminded that if you're in Upper Middle, your actual tax may be higher than the AMT. The thing that sucks about the AMT is that if we try to deduct our state taxes (yes, we pay tax on the tax that we pay to the state), our kids, or our morgatge interest everything screeches to a halt and the big AMT flag begins to wave. Stinks. Quote Link to comment Share on other sites More sharing options...
texasmama Posted April 14, 2011 Share Posted April 14, 2011 Of the property taxes for our home, the majority goes to the public school district. Lesser amounts go to the county hospital and community colleges. A small amount goes to emergency services and the water district (we use co op water). Quote Link to comment Share on other sites More sharing options...
knittingmomof3 Posted April 14, 2011 Share Posted April 14, 2011 We live in NJ and currently pay $6300 in property taxes. We live in a small, modest ranch home on 0.22 acre. About half of this goes to the local school district. Property taxes do not include garbage, recycling, water, or sewer. We have an enormous police force for a small, low-crime township. We have a large state-of-the-art public school for a very small district. We have our taxes included in our mortgage bill and the mortgage company pays the property taxes out of our escrow account. It helps to lessen the sting. Oh, and this week the township is coming through to reassess the properties in our neighborhood. I do not anticipate a reduction in our property taxes... Quote Link to comment Share on other sites More sharing options...
Serenade Posted April 14, 2011 Share Posted April 14, 2011 Blech. That's how I feel. Too much, far too much. Quote Link to comment Share on other sites More sharing options...
sassenach Posted April 14, 2011 Share Posted April 14, 2011 We are self-employed which means we pay slightly more than wage-earners. That's no fun. Since we pay ours in one whopping check a year, it seems OUTRAGEOUS. So I vote too much. Especially for how it's spent. If everyone had to write a check for taxes instead of having it withheld, we'd have tax reform in no time at all. Whether it's writing a check twice a month or once a year, the act of writing it certainly gets your attention. :iagree::iagree::iagree: Quote Link to comment Share on other sites More sharing options...
KidsHappen Posted April 14, 2011 Share Posted April 14, 2011 May I ask, are you sure you are only looking at federal income tax AND NOT social security and medicare withholdings? It seems you would pay less with five dependents. We only have two deductions. The rest are grown. We are in the highest tax bracket and have to pay the AMT. We max out ss. Our total tax burden including ss, medicare, property, local and sales is a staggering 45%. :glare: Honestly, it is more than many people make. When you add in health, life and other deductions like that, my hubby brings home less than half his income. And yet, I am disabled, can't afford all the medical care I need and haven't been able qualify for disability yet because of red tape. Quote Link to comment Share on other sites More sharing options...
Karenciavo Posted April 14, 2011 Share Posted April 14, 2011 My husband is self-employed and we live in NJ. The amount of taxes we pay is disgusting. Quote Link to comment Share on other sites More sharing options...
Ginevra Posted April 14, 2011 Share Posted April 14, 2011 I see what you're saying, but I disagree because I think that these things benefit the community as a whole (and then trickle down to everyone in the community even if you don't individually use them). But that could be true of many things that are not now paid for publicly. What if health clubs were public? Wouldn't that be beneficial to the community? Think of all the people who currently don't have access to exercise classes and fitness equipment. (Tongue-in-cheek) Health Clubs operate just fine through the private business model. I don't know. Property taxes are the price one pays for being a member of the community. Someone has to pay to build and maintain roads, stop lights, public safety officers, gas and sewer lines and provide clean safe water. I can't imagine charging admission to a playground or paying a fee for a library card. My little city has an amazing bike and pedestrian trail system that I'm happy to help contribute to even though my kids are too young to use it yet. I'm a big fan of public transit. Property taxes make a big difference in the quality of life where I live. Christine W I can imagine paying a fee for a library card. I pay a fee to borrow Netflix. I would readily pay an annual fee to be a member at the library if taxes were not part of the picture and it was just operating as a private business. I'm not sure where you live, but where I live about 50% of my property taxes goes to the local (average) school district. So while I struggle to afford buying material for my kids, I am forced to buy school materials for other children. I'm also opposed to the government being able to foreclose on a property for not paying property taxes. Yes, us too. At one time, it was actually outlined on the tax bill "$X for education" and it was nearly half of the total cost. Wow!! I really didn't realize some pay soooo much in property taxes! We're in FL and I don't think we pay enough. We pay less than 1K in property taxes and our schools get very little. In fact, dh and I vote "yes" every time an increase is on the ballot but it never gets approved. We paid $7500 in property taxes last year, and that (astoundingly) was less than previous years. When we were re-assessed, our property "assessed value" was reduced by 300K dollars. The year before the reduction, we paid $9800 in property taxes. We pay ours out in one straight check. Yes, it "hurts" more that way, but I actually would rather do it the way that hurts more. If it's bundled into a mortgage or paid in increments, it's easier to ignore. I work out the payments on my records as if they are monthly. In monthly terms, property taxes are the most expensive thing on our household budget. (Our health insurance is hundreds more, but dh's company pays for that and that is a whole 'nother post.) Quote Link to comment Share on other sites More sharing options...
texascamps Posted April 14, 2011 Share Posted April 14, 2011 I'm fine with the federal taxes I pay because we don't pay much to the feds. There was a time when we were in a higher tax bracket and it was horrible. We couldn't deduct charitable contributions, student loan interest, etc. because of our bracket. However, my state tax is a burden. I feel I could pay more for medicare and SS as there is no way they'll make enough off me at this rate to pay for me later. I do have friends that make quite a bit and the amount of tax they pay is obscene. Most wealthy friends I have are quite generous with their money and frequent small businesses and donate to charities. I feel their money is better spent by them locallay than being sent to Washington to be wasted on criminal orgs like Acorn and Planned Parenthood and booze for Nancy Pelosi's jet. Quote Link to comment Share on other sites More sharing options...
Haiku Posted April 14, 2011 Share Posted April 14, 2011 I voted that we don't pay enough. I think we paid about $400 in actual income tax for the past tax year (not counting SS and Medicaid). I think that's kinda ridiculously low. Tara Quote Link to comment Share on other sites More sharing options...
Plucky Posted April 14, 2011 Share Posted April 14, 2011 I think the amount of tax I pay if fine. I wish it was spent more wisely. I'm worried that the mortgage interest deduction will be taken away. Then I'll be up in arms. I wonder, do the people who don't think they pay enough in tax, donate the extra money towards the deficit or any other government program? What's the point in bemoaning not paying enough tax if one doesn't pay the appropriate amount? Quote Link to comment Share on other sites More sharing options...
RahRah Posted April 14, 2011 Share Posted April 14, 2011 I just looked at our preliminary return - Federal, FICA + matching FICA and State ate 51.5% of DH's income (broken down, since DH is self-employed, it works out as 9% to the state, 12.4% for SS max portion of income, 2.9% for medicare...so the "federal income tax" portion was 27.2%).....it's obscene....he works more than half the year just to pay the taxes! Quote Link to comment Share on other sites More sharing options...
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