Taxes are one of those things no one can avoid. Death and taxes are inevitable one way or another. And while most of us just filed our income tax returns for 2013, we each face taxes daily whether it is retail sales tax, property taxes, government fees and excise taxes. This is the first of a series on taxes for the blog over the coming few days.
Taxes are essentially impossible to avoid at some level regardless of your income. Whether it is income taxes (federal state and local), sales taxes, property taxes (whether you own or rent—someone pays) or excise taxes , most people pay at least some. While retail sales taxes are itemized at the end of a receipt, excise taxes are already included in the price and are not explicitly broken out. Excise taxes, for example, are included in sales of gasoline and diesel fuel (for non-agricultural use), wine liquor and beer most tobacco, firearms, boats, airplane tickets and even tires.
Are you getting what you pay for when it comes to taxes—at the local and state level? To address this, wallethub.com completed an analysis by state examining six key issues to proxy an overall return on investment (ROI) for taxpayers. The six primary categories included:
Within each of these major segments, weightings were made on several items. Under education for example, the State K-12 Public School Rank was given a potential 0.3 maximum score within the segment, State University System Rank 0.4, and Public High School Graduation Rate 0.3. Each of the six major segments had a combined potential score of 1.
So which states get the biggest ROI – return for the buck, so to speak?
Realize that even within each state, the ROI can be broadly different across the taxpayer base. A former government worker from a state that provided retirement to 50 somethings probably feels they have achieved a great return, while others without such benefits perceive otherwise.
To review the entire study and rankings of all 50 states, including an extensive list of factors and weightings, click http://wallethub.com/edu/state-taxpayer-roi-report/3283/
What is wallethub.com? It is a social network related to financial well-being. It was started by Evolution Finance in 2012. Their offering includes Card Hub, which allows consumers to compare and evaluate various credit card offerings.
Hope you are getting your bang for the buck—but you pay regardless.