Americans pay more in taxes than food, clothing, education and health care — combined
SALT LAKE CITY — Death and taxes (two things no one can dodge) or taxed to death. On average in 2021, American consumer units* spent $15,495 on food, clothing and healthcare combined — less than the $16,729 spent on taxes, according to Bureau of Labor Statistics (BLS).
If that weren’t enough, there’s another shocker: April 23 is Tax Freedom Day — the day on which Americans have worked long enough in order to pay their share of the country’s tax burden.
Let’s talk taxes
KSL NewsRadio’s Dave & Dujanovic are all fired up about the news from the BLS.
“Every dollar you earn is taxed like 12 different ways,” Dave said, listing the taxes:
- State income,
- Federal income,
- FICA Social Security,
- Medicaid & Medicare.
“Of that remaining 75, 80 cents, every time you buy something, that’s gonna be taxed,” he said. He also mentioned these levies:
- Hotel-room tax,
- capital-gain tariff,
- death tax and
- RAMP tax (recreation arts, museums and parks).
* As reported by Reason, the BLS measures spending per “consumer unit,” which it describes as either:
- all members of a particular household who are related by blood, marriage, adoption or other legal arrangements;
- persons living alone or sharing a household with others or living as a roomer in a private home or lodging house or in a permanent living quarters in a hotel or motel, but who is financially independent; or
- two or more person living together who use their income to make joint expenditure decisions.”
“How much are we paying in taxes?” Debbie asked. “Last year, $16,729 of total taxes [on average were paid] to federal, state and local governments. American consumer units — as they’re referred to — [spent] an average of $15,495 on food, clothing and healthcare combined.”
For a total of $ 32,224 spent on taxes, food, clothing, education and healthcare in 2021. If your salary is $100,000, that leaves you with $5,666 a month.
Bureau lowballing its data, says Debbie
“So if you boil it down the taxes, you’re spending $8,500 in federal income taxes, $5,500 on Social Security taxes, $2,500 in state and local income taxes, $2,400 in property taxes and $105 in other taxes. I think that’s low. I also think what’s low is the $1,700 a year they’re telling us we’re we’re spending on our clothing. No way. Where are you shopping?
“They’re [BLS] are just calculating the numbers. I think it’s worse. I think we’re spending a lot more on those three necessities and probably on taxes as well. Because $105 in other taxes seems low. You pay that just in one purchase sometimes if you make a big purchase,” said Debbie.
Both Dave and Debbie agreed the BLS data on how much the average American pays in tax is a good example of where your money goes. Your federal income tax also goes to pay for this:
In Fiscal Year 2021, the national debt was $28.4 trillion in Total Debt. By 2032, the net-interest costs are expected to rise to $1.2 trillion annually or about $7,500 for each US taxpayer.
Dave & Dujanovic can be heard weekdays from 9 a.m. to noon. on KSL NewsRadio. Users can find the show on the KSL NewsRadio website and app, as well as Apple Podcasts and Google Play.
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