are obvious. You can see that you pay sales tax every time you go to a retail store. You look at your paystub and see your federal and state income, social security and medicare taxes. If you own a home, you see your property taxes once a year or every time you pay your mortgage payment if you escrow your taxes.
Others are not so obvious. When you fill up your gas tank, a portion of the per gallon price is federal, tax and local tax. Your cell phone has state and federal taxes. And your cable bill, electric bill, natural gas bill are all taxed. So called sin taxes on cigarettes and alcohol are part of your tax burden if you purchase these products. Hotels and resorts have various state and local taxes. How can you measure all the taxes you pay?
The AICPA has come out with a tax estimator website. Total Tax Insights at www.totaltaxinsights.org provides a tool that uses more than 20 different taxes to provide some insight into your tax burden. It may surprise you and can be quite useful. The website may offer some guidance if you are considering relocating by comparing the total taxes of your current location and a possible new location. It could change your shopping habits or driving habits by quantifying specific taxes.
Knowledge is a powerful tool and if you need some guidance in handling your finances and taxes, please call me to set up a free initial consultation.