Dr. Martin Hash Podcast

Considering how taxes are an everyday part of everyone's lives, few people even know what's going on. Confusion is the biggest cause for suspicion of taxes, especially since they are so arbitrary and uneven. For example, 7 States have no Income tax, and 5 States have no Sales tax. Alaska has neither. In fact, Alaska pays its residents almost $2K a year. Sales tax is the most regressive because everyone has to pay it but most States don't tax groceries, however, 6 States do. 21 States have Estate taxes; Washington State is highest at 20%, which is in addition to the federal government's 40%; and Washington's Estate tax starts at $2.1 million while the federal one doesn't start until $5.6 million.

As for federal Income taxes: couples who make less than $2K per month don't pay. In fact, families with 2 kids don't pay any federal taxes until they make over $50K a year, as it should be, and the top federal Income tax is 37% on people who make over $600K. Most so-called “tax loopholes” only benefit the Middle Class but the most egregious example of abuse, the Capital Gains loophole, primarily benefits The Rich; about 5 million people pay its much reduced rate, so people who take their income as salary get hit at the top rate while folks who get big money doing nothing, pay 28%. Worse, all Workers have to pay the horrific Social Security and Medicare taxes from every dollar they earn, but people who don't work, don't have to pay them. Finally, after all the talk and hysterics, no one knows what the taxes are actually spent on; the black hole called “government.”