Thread: Taxing Money More Than Once

I've seen a number of posts expressing criticism about the idea of money being taxed more than once, often in discussions about whether the inheritance tax is unfair because the government is taxing the money when it is income to the wage earner, and when it passes to the earner's heirs upon his or her death.

Maybe I'm missing something here, but doesn't the government routinely tax money "more than once"? For example, the money I earn through working is initially subject to a number of different taxes (income, social security, etc.). My after-tax income is taxed again when I go out and spend it on a variety of items. For example, if I buy a car with my already-taxed earnings, I have to pay state and federal taxes on my purchase, so that same money has now been taxed twice. Same thing if I use the money to buy anything from baseball tickets to a house. It's taxed coming in and going out, so to speak.

So, tell me, where does the idea come from that money can only being taxed once?

It was the idea behind the boston tea party and all the protests of the stamp act for starters.

and many feel that those taxes you listed are illegal because of that. I know there's language in one of our founding documents to that effect, but am too lazy to find it.

You are right about taxing more than once but there are worse taxes. How about this one? In California you pay a tax based on a federal tax and the price of the gasoline. California then taxes you on the total for the gallon which includes the Federal tax, thus you are paying a tax not for a product but for a tax levied by the Federal government. We are still 14 Billion dollars in debt.


Nice HUH?

Richard

Originally Posted by riooso

You are right about taxing more than once but there are worse taxes. How about this one? In California you pay a tax based on a federal tax and the price of the gasoline. California then taxes you on the total for the gallon which includes the Federal tax, thus you are paying a tax not for a product but for a tax levied by the Federal government. We are still 14 Billion dollars in debt.


Nice HUH?

Richard

Gasoline cigarettes, and liquor are all worse than that. They are taxed by both the feds and the state before you see the price tag upon which you pay a sales tax and in some places a special liquor tax or other sin tax. So on gas you are charged sales tax on the money the state itself is charging in tax. Or the state taxes you to pay the feds a tax and also taxes you to pay them a tax. Its a tax payment tax.

The last time I heard a figure on cigarettes the price producers charge hadn't gone up since the seventies, the only thing causing the price to rise was taxes.

Here in Michigan there is a legal minimum set by the state that must be charged for liquor, while not a tax it is a way they screw money out of our pockets that would be completely abhorrent to the founders of this nation.

We also have to pay income tax on the money we get as an income tax refund. They take to much from our paycheck in the first place then they tax it as income when they give the overage back, figure that one out.

Originally Posted by billyjeff2

So, tell me, where does the idea come from that money can only being taxed once?

from people who are overtaxed

Originally Posted by Wildtim

We also have to pay income tax on the money we get as an income tax refund. They take to much from our paycheck in the first place then they tax it as income when they give the overage back, figure that one out.

No way?! I'd love to take that one to court

Originally Posted by Quick Orange

No way?! I'd love to take that one to court

Oklahoma does it

My theory is that taxation is a mechanism established by the rich (i.e., those with capital to invest) to extract money from the poor. It works like this: every investment has a certain amount of risk that you will not be paid back. The safest investment is to loan money to the government, which is required to pay by law. The government sells debt to investors in the form of bonds and implements taxes to pay the interest on the bonds. The taxes hit wage earners much harder than investors. The investors take the interest earned from the government and buy more bonds. It's a money pump that takes money from wage earners and puts it in the pockets of investors.

Originally Posted by Quick Orange

No way?! I'd love to take that one to court

It's because the withholding is taken out pre-tax, so it becomes taxable when it is refunded.

j

Originally Posted by Nord Jim

It's because the withholding is taken out pre-tax, so it becomes taxable when it is refunded.

j

But the federal tax charged for that year is on pre-tax dollars, your withholding has no bearing on your gross taxable income. (it's the same in California btw)