Five of the Most Taxing Taxes

Paying taxes is among the most dependable parts of life. But certain taxes are more painful than others. Today we will identify and discuss the five types of tax that Americans hate the most.IncomeTaxScrabble

  1. State Income Tax

There’s nothing more annoying than having to pay tax to both your state and the Federal government. Thankfully, there are seven states with no state income tax, and two states only tax interest income and tax dividends.

  1. Self-Employment Tax

As an employee, your employer pays half of your social security taxes. If you are self-employed, the whole amount has to come out of your pocket. This is known as the self-employment tax and it can make setting up a business difficult.

  1. Social Security Taxes

You are paying for the baby boomers. In addition, the kicker is the current generation will never reap the same benefits as the people they are paying for now. Sure stings, doesn’t it?

  1. State Sales Tax

Sales tax is the most hated tax in the country. The less you earn the more it’s going to hurt because this isn’t a progressive tax. Only the richest people benefit here.

  1. Property Tax

Local governments change property taxes very frequently. It can also feel unfair because like the state sales tax it isn’t progressive, so a small house will warrant the same tax as a large house. This can make selling a house for a poorer person an extremely expensive venture.

Image credit: Jeff Djevdet

About the author

Seattle CPA+John Huddleston has written extensively on tax related subjects of interest to small business owners. He is a graduate of Washington State University and the University of Washington School of Law.

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