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Earnings v Tax

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  1. Jan 14, 2008 #1

    wolram

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    Do you know what your actual spending power is ? If you earn $1000 a month deduct all the taxes, fuel, purchase, income, etc, etc.
     
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  3. Jan 14, 2008 #2

    russ_watters

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    Huh? Subtract your income from your income?

    Could you be a little clearer about how you define "spending power"? Do you mean "disposable income"?
     
    Last edited: Jan 14, 2008
  4. Jan 14, 2008 #3

    wolram

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    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?
     
    Last edited: Jan 14, 2008
  5. Jan 14, 2008 #4

    Evo

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    If I subtract 38% from my gross income, I come close to my take home pay.
     
  6. Jan 14, 2008 #5

    wolram

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    OK, so now deduct all the other taxes you pay.
     
  7. Jan 14, 2008 #6

    Evo

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    Ok if I buy anythng, then I have to pay sales tax. Not sure how much the total is.
     
  8. Jan 15, 2008 #7

    wolram

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    And do you pay car tax/pay tolls, do you pay property taxes?
     
  9. Jan 15, 2008 #8

    Evo

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    I paid property tax last year, but they are deducted from my Federal Income Tax, you pay an annual fee to license your car.
     
  10. Jan 15, 2008 #9

    wolram

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    Do you get taxed on your savings/investments?
     
  11. Jan 15, 2008 #10

    wolram

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    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.
     
  12. Jan 15, 2008 #11

    Evo

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    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.
     
  13. Jan 15, 2008 #12

    brewnog

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    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.
     
  14. Jan 15, 2008 #13

    wolram

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    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).
     
  15. Jan 15, 2008 #14

    wolram

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    Try not to use it up.
     
  16. Jan 15, 2008 #15

    Evo

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    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.
     
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