Calculate Your True Spending Power

[wolram]

Do you know what your actual spending power is ? If you earn $1000 a month deduct all the taxes, fuel, purchase, income, etc, etc.

 

[russ_watters]

Huh? Subtract your income from your income?

Could you be a little clearer about how you define "spending power"? Do you mean "disposable income"?

 

[wolram]

Huh? Subtract your income from your income?

Could you be a little clearer about how you define "spending power"? Do you mean "disposable income"?

I mean how much of your total pay can be used to buy goods or services.

IE earn $1 deduct all payable taxes what are you left with?

 

[Evo]

If I subtract 38% from my gross income, I come close to my take home pay.

 

[wolram]

If I subtract 38% from my gross income, I come close to my take home pay.

OK, so now deduct all the other taxes you pay.

 

[Evo]

OK, so now deduct all the other taxes you pay.

Ok if I buy anythng, then I have to pay sales tax. Not sure how much the total is.

 

[wolram]

Ok if I buy anythng, then I have to pay sales tax. Not sure how much the total is.

And do you pay car tax/pay tolls, do you pay property taxes?

 

[Evo]

And do you pay car tax/pay tolls, do you pay property taxes?

I paid property tax last year, but they are deducted from my Federal Income Tax, you pay an annual fee to license your car.

 

[wolram]

Do you get taxed on your savings/investments?

 

[wolram]

httpn.wikipedia.org/wiki/Taxation_in_the_United_Kingdom

This is what we pay for.

Council tax
income tax
car tax
vat
savings taxes
inheritance tax
stamp duty
fuel tax
parking taxes, it is about £3 for 1hour stay at hospital car park.
If you drive into London, congestion tax
There are sure to be others.

 

[Evo]

Do you get taxed on your savings/investments?

Yes, but you can put them into special savings that defers the tax. Also, I can place money for medical expenses into a Flexible Spending Account so the money I use for medical purposes is not taxed.

 

[brewnog]

Of my gross income:
- Council tax ~ 3%
- Income tax ~ 22%
- Car tax ~ 0.7%
- VAT ~ 6%
- Fuel tax ~ 5.5%

Total 37.2% of what I earn is taken by the taxman, in one form or another. Plus National Insurance.

 

[wolram]

Of my gross income:
- Council tax ~ 3%
- Income tax ~ 22%
- Car tax ~ 0.7%
- VAT ~ 6%
- Fuel tax ~ 5.5%

Total 37.2% of what I earn is taken by the taxman, in one form or another. Plus National Insurance.

And the next stealth tax, electronic dust bins to weigh how much one throws away and
charge accordingly ( i should get a rebate for that).

 

[wolram]

I can place money for medical expenses into a Flexible Spending Account so the money I use for medical purposes is not taxed.

Try not to use it up.

 

[Evo]

Try not to use it up.

That's the catch, you have to guess how much to set aside for medical expenses for the next year and use it all or you lose what you don't spend. So you always put less into the account than you think you'll use. It's great for medical emergencies because even though the money comes out of your paycheck in equal monthly amounts over the next year, you can use all of the money interest and tax free on the first day of the year even though you haven't paid anything into the account yet.