The Taxman

Drive a car, I'll tax the street, Try to sit, I'll tax your seat, Get too cold I'll tax the heat, Take a walk, I'll tax your feet. Cos I'm the taxman, yeah I'm the taxman...

I posted a video yesterday where I mentioned your money is property just a surely as your house. Well, in the mail yesterday, I got my property tax estimates for this year – 2025 - due in December. If the government gets everything they want in the budgets before them, my property tax will go up from around $5500 last year to over $5900 this year.

Property taxes are just one thing – Utah has a 4.55% state income tax and a 7.19% state sales tax – some municipalities also have a sales tax as well.

The fact is that working Americans may face 20–30+ different taxes depending on their circumstances, such as being self-employed, a homeowner, an investor, or living in a high-tax state like California, which has steep income and sales taxes, compared to a no-income-tax state like Texas or New Hampshire, where property taxes are higher. Not all taxes apply to everyone—a renter in Texas might face fewer than a self-employed homeowner in New York City—and some, like employer-paid federal unemployment tax or property taxes passed through rent, affect workers indirectly.

Almost every one of these is a tax on top of taxes that have already been paid.

I asked Grok to give me a list of what taxes to which people may be subject to:

Federal Taxes

• Federal Income Tax - Levied on wages, salaries, and other income, with progressive rates based on income brackets.

• Social Security Tax - Part of FICA, typically 6.2% of wages up to a cap ($168,600 in 2024).

• Medicare Tax - Also part of FICA, 1.45% of all wages, with an additional 0.9% for high earners (over $200,000 single/$250,000 married).

• Federal Unemployment Tax (FUTA) - Paid by employers, but indirectly affects workers as it funds unemployment benefits.

• Capital Gains Tax - Applied to profits from selling assets like stocks or real estate (short-term or long-term rates).

• Net Investment Income Tax - 3.8% on investment income for high earners (above $200,000 single/$250,000 married).

• Self-Employment Tax - Covers Social Security and Medicare for freelancers/self-employed (15.3% total, combining employer/employee portions).

• Alternative Minimum Tax (AMT) - Ensures high earners with many deductions pay a minimum tax.

• Estate Tax - On inherited wealth above a certain threshold (not common but possible for high-net-worth individuals).

• Gift Tax - On large gifts given during one’s lifetime, above the annual exclusion amount ($18,000 in 2024).

State and Local Taxes

• State Income Tax - Varies by state; some states (e.g., Texas, Florida) have none, while others have flat or progressive rates.

• State Unemployment Tax (SUTA) - Paid by employers but can indirectly affect workers; varies by state.

• State Sales Tax - Applied to purchases of goods and some services; rates vary by state (0% in states like Delaware, up to 7%+ elsewhere).

• Local Income Tax - Levied by some cities or counties (e.g., New York City, Philadelphia).

• Property Tax - On real estate, typically paid by homeowners but can affect renters indirectly via rent prices.

• Local Sales Tax - Additional sales taxes imposed by counties, cities, or special districts.

• Personal Property Tax - On valuable personal items like vehicles or boats in some states/localities.

• School District Tax - Local taxes, often tied to property, to fund schools (varies by jurisdiction).

• Excise Taxes - State/local taxes on specific goods like alcohol, tobacco, or gasoline.

Other Taxes (Situational)

• Use Tax - For out-of-state purchases where sales tax wasn’t collected (e.g., online shopping).

• Hotel/Occupancy Tax - On hotel stays, often at the state or local level.

• Car Rental Tax - Additional taxes on renting vehicles, common in tourist-heavy areas.

• Utility Taxes - On services like electricity, gas, or telecom, often local.

• Franchise Tax - For business owners, in some states, based on business revenue or assets.

• Severance Tax - On natural resource extraction, relevant for workers in industries like oil or mining in certain states.

• Sin Taxes - Additional state/local taxes on items like cannabis, alcohol, or gambling winnings.

• Tolls and Transportation Taxes - Fees for using certain roads, bridges, or public transit systems, often local.

• Business License Taxes - For self-employed individuals or small business owners, imposed by some cities/counties.

• Meals Tax - Specific local taxes on restaurant meals, separate from general sales tax.

Less Common or Industry-Specific Taxes

• Professional License Taxes - Fees for certain professions (e.g., doctors, lawyers) in some states.

• Payroll Taxes (Other) - Some states have additional workforce-related taxes (e.g., disability insurance in California).

• Environmental Taxes - Fees on activities like waste disposal or emissions, relevant for specific industries.

• Foreign Income Tax - For Americans working abroad, though often offset by foreign tax credits.

• Amusement Tax - On entertainment like concerts or sporting events in some localities.

Pretty long list, huh?

No wonder it is quite possible that 60% of your salary disappears.

This is why tax policy matters.

Taxation at these levels IS theft.