Rd and
reflect on Ch. 12
Do some
research online and find 4 different state or local taxes that are levied on
taxpayers who live in your neighborhood. They should be 4 different kinds of taxes,
such as sales tax, tobacco tax, hotel tax, and property tax.
I live in
Redwood City California: the California sales tax is 9.75%, property tax rate
is 1.112% (of course this an estimate and it various by property within cities
and counties), tobacco tax is 59.27%, and hotel tax is 12% in Redwood city (14%
in California overall).
Summarize the
tax rates a person who lives in your neighborhood is subject to paying with
regard to each of the 4 kinds of taxes, and how these compare to the rates paid
by a person who lives in a nearby city. For example, a tax in my city of East
Palo Alto is 9.75%. The Sales tax rate in adjacent Palo Alto is 9.0%
Menlo Park
has the same sales tax as Redwood City (9.75%), property tax rate is the same
(1.112%), tobacco tax is the same, hotel tax is 10%.
Are there
ways an individual can avoid paying these taxes? From what I have read no
everyone has to pay it, but there are ways that you can minimize taxes by doing
it legally. I don’t know much about it, so, I can’t fully explain it. But there
are some people who use the tax system to their advantage.
Does
everyone pay the taxes equally?
Yes. A flat tax burdens everyone to pay an
identical amount regardless of income or economic transaction. Low-income
person/families would have a harder time paying this than someone with a
high-income, as it would be a difficult financial burden for the low-income
family, forcing them to make financial decisions that would negatively impact
their lives. Just so they can pay the taxes making them poorer in the process
compared to someone who makes a high-income.
Are they
regressive or progressive? Why might local tax rates vary within a county?
That is a
hard question to answer, as it various by one’s income level. Then that person
could think of these local taxes as regressive or progressive. Like the point
I made earlier, that everyone has to pay taxes equally, but it effects people
with different incomes differently. The low-income individual or family are
more likely to use public services, so, these taxes to them are progressive,
while someone with high-income who doesn’t use public services might find them regressive and a waste of their own money.
Some
counties have greater municipal responsibilities, different populations pose
different needs for services, some counties serve many nonresidents, or
counties have different local revenue raising capacity.