20 More Tax Facts That Will Make Your Head Explode

tax slavery

Photo: davitydave on flickr

If your head didn’t explode from Reason’s awesome tax video, then take a look at the new list.

Pundits talk a lot about the growing tax share of the rich, and the 47% of Americans who don’t pay income tax. These arguments are somewhat unfair because they ignore the growing wealth disparity.

But they’re just two of many ridiculous facts that emerge in the bureaucratic mess of taxing the world’s biggest economy.

Most people are having a bad day. Thanks to inefficiency, everyone in America faces a rotten future.

It’s Time To Make Your Head Explode >

Americans spend 7.6 billion hours each year doing their taxes

Source: Economist

Americans hire over 1 million accountants each year for tax help

Source: Economist

We spend $27.7 billion a year preparing taxes

America has 98,000 troops in Iraq... and 101,054 employees at the IRS.

Troop number as of Feb. 28, 2010.

The number of pages in the tax code has increased 16,775% in the past century

Based on figures from this awesome video at Reason.tv

Where's all that money going? 54% of discretionary spending goes to the military

Source: CBO figures for FY2008 via War Resisters League

New York City has the highest corporate income tax in the world

Blue is corporate income tax. See Forbes for full chart.

A $100k earner takes home 10% less in NYC than in Texas

Data is net % to employee after social and income tax, for an unmarried person with a $100k salary. See Forbes for the full chart.

Dividend stock investors get taxed twice... first the company pays taxes on earnings, then you pay taxes on dividends.

Source: Motley Fool

700 wealthy Americans are donating their tax breaks this year back to the U.S. government... such as Bill Gates

Source: Motley Fool

84% of people think it is NOT AT ALL acceptable to cheat on your taxes

Source: IRS (PDF)

Around 90 per cent of people who employ babysitters and housekeepers end up cheating on their taxes

Source: New York Times

Report your company for tax evasion, and you can earn 30% of the amount collected.

Source: IRS

CORPORATE TAX EVASION: GE made $10.3 billion in pre-tax income in 2008, but didn't have to pay a single cent in taxes

Here's how: GE has two divisions, one being the part that is a manufacturing and media company, the other its financial arm. GE Capital is U.S. based and had significant losses, which allowed it not to pay taxes, while the company's offshore divisions made gains it did not have to pay taxes on.

Source: Motley Fool

BUSTED: In 1997, Wesley Snipes reported his adjusted income as $0, when according to the government his income was over $7 million.

CORPORATE TAX EVASION: Bank of America paid no taxes in 2009, even though it made $4.4 billion income.

Here's how: Bank of America utilized a series of tax deductions for losses to offset its taxes, while also taking advantage of the government's $49 billion backstop for credit losses.

Source: Forbes

CORPORATE TAX EVASION: Molson Coors paid no taxes in 2009, and was actually paid $14.7 million by the government.

Here's how: The company used its UK and Canadian based businesses to house gains, paying lower taxes in those countries. Coors also deferred taxes to future years.

Source: Denver Post

BUSTED: In 2009, Treasury Secretary Timothy Geithner stumbled through his confirmation after it was revealed he failed to pay taxes of $42,000 on IMF income.

Source: MSN

Tax rates are declining for everyone... Especially the top 1%

Source: Get Rich Slowly

Here's why the rich are carrying more of the tax burden: because they are gaining wealth faster than the tax rate is declining!

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