Just answer the question to the best of your knowledge...
2007-05-02 05:15:13 · 3 answers · asked by aaaman_2000 1 in Business & Finance ➔ Taxes ➔ United States
Not just american but any money; and it is not only double taxed, it is triple taxed and squeezed until the picture on the front screams out in agony.
2007-05-02 05:20:06 · answer #1 · answered by acmeraven 7 · 1⤊ 3⤋
Best answer: It depends. Upon your perspective as well as what is done with the money earned.
A single dollar, as it winds its way through the economy, is taxed any number of times as income and probably is used to reduce tax as a deduction or business expense.
Some of the dollars you receive in your paycheck are taxed, but some of them are not. For a Single filer, the first $8,450 of income from wages (2006 rates) isn't taxed at all (at least not income taxes). If you put that dollar into a Roth IRA, it will "reproduce" tax-free dollars possibly for decades until you retire. If you then retire to a state without a sales tax, it may never be taxed.
Of course, other dollars received will be taxed along the way, often by multiple jurisdictions. And if you spend it on a taxable purchase it will be taxed again.
So, you see, you can't make a blanket statement that American money (or any money for that matter) is double taxed. Some dollars are never taxed, and others may be taxed multiple times.
2007-05-02 07:17:23 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
In some cases - for example, you pay income and social security taxes on your paycheck, then use some of it to buy items where there are sales taxes, or to pay real estate taxes.
There are many taxes that are for particular purposes, and some of them end up overlapping.
2007-05-02 05:25:59 · answer #3 · answered by Judy 7 · 1⤊ 0⤋