Taxes and Timing

[Luxoris]

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do ppl really not know how much they pay in taxes? i mean if theyre on an annual salary and and its say 75k a year, dont they notice when they only get paid 55k?

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Of course they know. This entire thread is a strawman.

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Wrong. If you asked 100 people how much they paid just in federal income tax last year - an amount that is explicitly listed on a piece of paper they signed and mailed into the government - I'd be surprised if more than 5 could tell you. Now consider all the other taxes people pay (sales, property, etc) and I'd guess that well under 1% of people could tell you within 5% how much they paid in taxes last year.

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I was referring specifically to income/payroll taxes, though when you look at total taxes paid you are probably wrong also. The bulk of what you are claiming are hidden taxes are paid in the form of state/local sales taxes and people know what that rate is. For the total of all taxes to be as far off as you claim would mean incredible ignorance.

As far as income taxes, go poll the hundred people, and I guarantee that theyll know the number within a percent or two.

As a personnel professional I can tell you from first hand experience that people spend more time on completing their W-4 forms to manage their withholding than all other employee orientation matters combined, including their 401(k) contribution level. (But with the exception of 401(k) asset allocation, where a lot of time is spent in education.)

[pvn]

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do ppl really not know how much they pay in taxes? i mean if theyre on an annual salary and and its say 75k a year, dont they notice when they only get paid 55k?

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Of course they know. This entire thread is a strawman.

[/ QUOTE ]

Wrong. If you asked 100 people how much they paid just in federal income tax last year - an amount that is explicitly listed on a piece of paper they signed and mailed into the government - I'd be surprised if more than 5 could tell you. Now consider all the other taxes people pay (sales, property, etc) and I'd guess that well under 1% of people could tell you within 5% how much they paid in taxes last year.

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I was referring specifically to income/payroll taxes, though when you look at total taxes paid you are probably wrong also. The bulk of what you are claiming are hidden taxes are paid in the form of state/local sales taxes and people know what that rate is. For the total of all taxes to be as far off as you claim would mean incredible ignorance.

As far as income taxes, go poll the hundred people, and I guarantee that theyll know the number within a percent or two.

As a personnel professional I can tell you from first hand experience that people spend more time on completing their W-4 forms to manage their withholding than all other employee orientation matters combined, including their 401(k) contribution level. (But with the exception of 401(k) asset allocation, where a lot of time is spent in education.)

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Where do you work? Selection bias city.