Digital Tax Increases in Europe

It's no secret that governments want more of your money. The thirst for tax dollars and larger government spending are facts of societal evolution.  With more and more commerce being driven over the Internet, it should be obvious that the digital frontier is extremely tempting for our elected leaders. 

What does this mean for you? Less money to spend on the things you want to spend money on.  Increases in taxes lead to slower economic growth.  Is that a good idea in Europe at a time when the region is in an economic slump and also facing hindered trade with Russia?

Should Phil Mickelson Have Just Shut His Mouth on Taxes?

$$ - Phil Mickelson complained that he was paying 62% to 63% in taxes, and that he'd have to do something about it. He his since modified his comments, but does he make a point that we should be paying attention to?

Think about it. He's one of the "rich" targeted by the Democrats as those who have somehow unfairly gotten wealthy at the expense of the poor and middle class. The Democrats believe that the government should take more money from Mickelson and his "ilk" via higher taxes to pay for services and benefits for those less fortunate.

That's the popular consensus these days, by the way.

Yet, the reaction from the rich and even upper-middle class have been to try and lower their tax burden by relocating to states that have lower tax burdens, or by changing their behavior.

Meanwhile, Mickelson is taking some heat for speaking against taxes. I liked him better before he tried to restate his comments.

 

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Tax, Tax, Tax

The President outlined his deficit-cutting vision yesterday:  Tax, tax, tax.

The bottom line was tax overhaul to take in more money from “the rich.”  My issue is that it seems like the government spends about $1.30 for every dollar it receives.  I’m not sure if that’s the exact ratio, but you get the idea, right?

In addition, I’m not sure raising taxes in a fragile economy is the right idea.  One thing that is for certain is that the amount of interest the United States pays on the national debt grows year after year.  That’s money that can’t be spent on anything else.  It’s like when families run up their charge cards to the point where the minimum monthly payment impacts their ability to do anything else with their money.  That’s the path the US is on.

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Is Paying Taxes Pleasurable?

Here's an interesting article saying that we like to pay taxes and that it has the same effect on us as sex.

(I don't know about you, but after I pay my taxes I always fall asleep.)

For a different view, check out Absurd "Study" Presented as Fact.

clipped from deseretnews.com Using brain-scanning technology, researchers have found an unlikely force at play in the minds of people paying taxes: Pleasure. In their experiment, taxing people for a charitable cause activated the brain's reward centers — the same areas that respond to such sources of delight as food and sex. The experiment helps explain the curious willingness of people to pay taxes, which has long puzzled economists. Given the low risks of getting audited, economic theories predict much greater rates of tax evasion than actually occur. The competing view, known as "warm glow" altruism, holds that people give mostly for the ego-stroking feeling that their personal act of charity made someone else feel better. Besides bringing new information to scientific debates, the researchers said the findings may help point the way to improving taxation systems.

Congress Raises Taxes on... Kids?

Sometimes tax hikes fly under the radar. We are all concerned with our marginal tax rates, sales tax rates, and property tax rates. But what about the "other" taxes, fees, and things filed under "misc?"

clipped from www.thestreet.com Until 2005, the tax on a child's unearned income, such as dividends, interest and capital gains, was paid at the parents' marginal rate if the child was under age 14. Last year, the age limit was raised, requiring children under age 18 to be taxed at the parents' rate. Now, starting in tax year 2008, the age limit will apply to children under age 19 -- or to "kiddies" who are full-time students under the age of 24. By closing that opportunity, the government expects to collect as much as $1.5 billion in extra tax revenues over the next 10 years.