- 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.
- 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.
- 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?
- 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.
- 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