Fellow jacket collectors & all,the crunch has hit me,taxes going up in NY state,my heathcare cost up,so many hidden charges thrown in to the mix.I have been gainfully employed for the last 39 years,same company,same location,but I am finding myself selling some things to fund others,after a while I regret this act.Every time some extra cash comes my way it goes to my home,i understand its an investment,but with the housing market here on Staten Island things have taken a dump!Does anyone feel this crunch?Brian....
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Disposable income
- Thread starter 1911A1US
- Start date
ties70
Well-Known Member
Brian,
hang in there! The situation will get tougher for all of us, worldwide.
You were writing about your house....Maybe you can help me with something:
When I was talking to a guy in Seattle he told me that people who own houses have to pay taxes due to their ownership, but not for the size of their property / ground (this is how we do it in Germany)...Instead they pay their taxes for the value of their homes...so if you buy an old home and decide to renovate it, invest some money, the city or whoever charges you higher taxes because the value of your house has increased.
Is that correct?
Regards
Ties
hang in there! The situation will get tougher for all of us, worldwide.
You were writing about your house....Maybe you can help me with something:
When I was talking to a guy in Seattle he told me that people who own houses have to pay taxes due to their ownership, but not for the size of their property / ground (this is how we do it in Germany)...Instead they pay their taxes for the value of their homes...so if you buy an old home and decide to renovate it, invest some money, the city or whoever charges you higher taxes because the value of your house has increased.
Is that correct?
Regards
Ties
ties70
Well-Known Member
Atticus said:
Thanks, Atticus!
Don't get me wrong, maybe I am missing something here....but isn't that...well, stupid?
It sounds as if people get punished for improving their home...which should be in the interest of the city / community, too, otherwise you end up with run down neighborhoods.
Do you get a tax cut, if the value decreases because you hadn't done anything on your home for years?
Regards
Ties
Swing
New Member
ties70 said:
It's called property tax, and you are taxed according the your home's appraised value (this includes the land and the home). So if your property became worth less, your taxes should go down. Property tax pisses a lot of people off (myself included), #1 because you always have to pay it, it's not something that goes away. #2, in my state (PA) it funds the public schools, so a lot of people with no kids are getting hammered thousands of dollars a year to pay for someone else's child's education. #3, in PA we recently legalized some forms of gambling and have built casinos. The revenue from those casinos was supposed to offer some relief on property taxes. Three years later, that has yet to happen.
It infuriates me when I add up all the various taxes in PA, and they still have trouble balancing a budget (and our roads are shit, and there's four bridges out within a ten mile stretch near me). Property tax, income tax, sales tax, 40 cent tax on a gallon of gasoline, tax on cigarettes and booze, toll roads, gambling revenue, and more I'm sure I'm forgetting.... that should be billions of dollars. And yet, they need more. :evil:
~Swing
Swing
New Member
Lets create a list of all the taxes we pay!
Federal income, starts at 15% and goes higher the more $$$ you make.
Social Security, 7.65%
State income, in PA I believe it's just over 3%
Local icome, around 1%
PA Sales tax, 6%
Gas, around 40 cents a gallon in PA.
Cigarettes, I think I'm paying over $1 a pack in taxes.
Add on any more you guys can think of.....
~Swing
Federal income, starts at 15% and goes higher the more $$$ you make.
Social Security, 7.65%
State income, in PA I believe it's just over 3%
Local icome, around 1%
PA Sales tax, 6%
Gas, around 40 cents a gallon in PA.
Cigarettes, I think I'm paying over $1 a pack in taxes.
Add on any more you guys can think of.....
~Swing
Lignemaginot
New Member
Oh boy, get the popcorn.
When I lived in Luxembourg for five years (2000-2005) I owned an old farm house. Real estate taxes were, I believe, about 200 Euro/year - I have no idea how they calculated the number.
On a personal level, I paid about the same percent in taxes that I pay now in the US - about 30%. Corporate taxes also amount to about 3.4% of Luxembourg GDP, vs 2.2% in the US (one always hears about the US having one of the highest corporate tax rates, but there's a difference between "high tax rate" and "high taxes").
For this, I received free education through college, free (virtually, anyway) health care (my second son was born there), police, fire, army (such as it is), roads, welfare, etc.. I don't mind paying my fair share of taxes as long as I perceive that others are paying their fair share and I'm getting my money's worth. I felt that way in Luxembourg. When I quit my job there, I called the Social Security office to ask what I would have to pay for my family's health coverage (you lose free health coverage if you quit, but you keep it if you're fired) - for a family of four, it would be... 83 Euro/month.
Now I'm back in Rhode Island. When I bought my house in 1999, I paid about $1800/year in taxes. This year, they are about $6000. And, to Ties' point, I have done nothing to the house (it was a rental for the years that I was in Luxembourg); not even painted it. These are just real estate taxes - I also pay insurance, and flood insurance because of my proximity to the ocean. The flood insurance has gone from $600/year in 1999 to $2400 today. I pay around 30% of my income in taxes, and what do I get? Well, my kids get free "education" through high school, police, and fire. There's a road network, but you'd never see roads in this poor condition in Luxembourg, even in the Ardennes. And I also get to pay for the world's policeman, the US military. Health? Apparently none of my taxes, or anybody's taxes, go to pay for that. I only get health coverage if I retain my job, and even then, I'm paying $400/month towards it.
To answer the title of your original post - Disposable income? No, I don't have any.
When I lived in Luxembourg for five years (2000-2005) I owned an old farm house. Real estate taxes were, I believe, about 200 Euro/year - I have no idea how they calculated the number.
On a personal level, I paid about the same percent in taxes that I pay now in the US - about 30%. Corporate taxes also amount to about 3.4% of Luxembourg GDP, vs 2.2% in the US (one always hears about the US having one of the highest corporate tax rates, but there's a difference between "high tax rate" and "high taxes").
For this, I received free education through college, free (virtually, anyway) health care (my second son was born there), police, fire, army (such as it is), roads, welfare, etc.. I don't mind paying my fair share of taxes as long as I perceive that others are paying their fair share and I'm getting my money's worth. I felt that way in Luxembourg. When I quit my job there, I called the Social Security office to ask what I would have to pay for my family's health coverage (you lose free health coverage if you quit, but you keep it if you're fired) - for a family of four, it would be... 83 Euro/month.
Now I'm back in Rhode Island. When I bought my house in 1999, I paid about $1800/year in taxes. This year, they are about $6000. And, to Ties' point, I have done nothing to the house (it was a rental for the years that I was in Luxembourg); not even painted it. These are just real estate taxes - I also pay insurance, and flood insurance because of my proximity to the ocean. The flood insurance has gone from $600/year in 1999 to $2400 today. I pay around 30% of my income in taxes, and what do I get? Well, my kids get free "education" through high school, police, and fire. There's a road network, but you'd never see roads in this poor condition in Luxembourg, even in the Ardennes. And I also get to pay for the world's policeman, the US military. Health? Apparently none of my taxes, or anybody's taxes, go to pay for that. I only get health coverage if I retain my job, and even then, I'm paying $400/month towards it.
To answer the title of your original post - Disposable income? No, I don't have any.
bazelot
Well-Known Member
1911A1US said:
Things haven't got much better since then unless you are willing to commute for 2 hours each way. The middle class is really struggling here. Even though salaries are supposedly higher than in the rest of the US this does not make up for the inflated cost of everything.
better duck
Well-Known Member
ties70 said:
You don't have to look very far for that: in Holland that is exactly the system. Main reason for the taxes going up is rising prices for houses: in 10 years time, the price of any given house rose about 100%. Municipalities levy this tax, which is defined as a tariff of say 3 Euros per 5000 Euro value of your house. The thought behind it is, that the local government can profit this way from the rising prices of real estate. What most municipalities do, under the influence of political parties, is as housing prices rise, lower the tariff each year. This way (part of) the income of the local government stays the same, while not taxing the houseowners any more.
Atticus
Well-Known Member
In most municipalities in the U.S., property taxes are a function of two things…tax rate and tax basis. In North Carolina, the basis must be adjusted every eight years for increases or decreases in value. Usually, when the basis is adjusted, the rate is also changed downwardly so as to keep the total yield fairly constant. If the municipality needs to increase revenue for whatever reason, then the tax rate is increased. Municipalities must operate from a balanced budget. That means that their current expenditures must be financed by current debt (i.e., bonds, which normally require a referendum) or current tax revenues. The more the municipality spends on parks, roads, salaries, ball teams, education, crime control, fire protection…and the other ten-million other things people want…the higher the tax rate must be. The reason that municipal taxes have increased so noticeably is that municipalities can’t easily hide increased expenditures with deficit budgets.
Only the Federal Government can do that.
AF
Only the Federal Government can do that.
AF
Atticus
Well-Known Member
tgd31968
Member
ties70 said:
As someone else said, I don't mind paying some taxes for the common good provided I see the benifit and don't see it wasted. As it works out, I don't often see the benifit, and I often see waste, so when they ask for more, I am not inclined to be happy.
In Michigan, the property taxes are based on assesed value as with most states. The school funding is also property value based, but is a seperate ballot issue and is voted for on its own. I have no kids, and don't mind helping fund schools to a point, since we need some smart kids to help support me in my old age.
The other fun fact about this system is retired people on a fixed income often find themselves forced out of homes here because when they bought their retirement homes, usually on a lake or some other desireable location, the property was cheap. As the years go by, and the assesments increase, the property taxes increase. Since they are retired and on a fixed income, they are sometimes forced to sell and move because they can no longer pay the property taxes, even though they paid the mortgage off years ago.
As someone else said, I don't mind paying some taxes for the common good provided I see the benifit and don't see it wasted. As it works out, I don't often see the benifit, and I often see waste, so when they ask for more, I am not inclined to be happy.
In Michigan, the property taxes are based on assesed value as with most states. The school funding is also property value based, but is a seperate ballot issue and is voted for on its own. I have no kids, and don't mind helping fund schools to a point, since we need some smart kids to help support me in my old age.
The other fun fact about this system is retired people on a fixed income often find themselves forced out of homes here because when they bought their retirement homes, usually on a lake or some other desireable location, the property was cheap. As the years go by, and the assesments increase, the property taxes increase. Since they are retired and on a fixed income, they are sometimes forced to sell and move because they can no longer pay the property taxes, even though they paid the mortgage off years ago.[/quote]
That is sooo sick :roll: Long ago we Euro's fled Europe to start over in America, land of oppurtunities and freedom. Maybe "Every man for his own and God for us all" as we say here is a bit harsh, but I find "the system" you have as it is now un-american.But the same goes for us here in Europe (or worse). What I wanted to say was.....nah forget about it....time for another cold brewsky....
In Michigan, the property taxes are based on assesed value as with most states. The school funding is also property value based, but is a seperate ballot issue and is voted for on its own. I have no kids, and don't mind helping fund schools to a point, since we need some smart kids to help support me in my old age.
The other fun fact about this system is retired people on a fixed income often find themselves forced out of homes here because when they bought their retirement homes, usually on a lake or some other desireable location, the property was cheap. As the years go by, and the assesments increase, the property taxes increase. Since they are retired and on a fixed income, they are sometimes forced to sell and move because they can no longer pay the property taxes, even though they paid the mortgage off years ago.[/quote]
That is sooo sick :roll: Long ago we Euro's fled Europe to start over in America, land of oppurtunities and freedom. Maybe "Every man for his own and God for us all" as we say here is a bit harsh, but I find "the system" you have as it is now un-american.But the same goes for us here in Europe (or worse). What I wanted to say was.....nah forget about it....time for another cold brewsky....
Cliff
Member
Well retired in February this year and thought great I now have plenty of time to at last do what I want to do. However this month I sold my beloved aeroplane (Piper Archer) and cannot bring myself to fly a flying club Cessna. The cost of keeping my licence current will also be prohibitive in the UK so I have decided to hang my headset up and take up something a little less expensive. Tried fly fishing last weekend with a mate and i could grow to like it ....with a lot of practice !!!
cheers
Cliff
cheers
Cliff
Atticus
Well-Known Member
I feel your pain, Cliff. I cannot remember a time that my father didn't own a small plane of some kind. Up until my mid-twenties, Beaufort's airport was uncontrolled and light aircraft ownership was something that was affordable by normal, middle-class people. Flying was fun and not terribly expensive. I can't count the times that I’ve gotten into Dad’s 150 and "dragged the beach" up to Ocracoke and back....chasing wild ponies and looking for nekked sunbathers.Cliff said:
I think I must have been among the last Americans to see that golden era of general aviation. By the time I was out of school, even a used Cessna 150 was financially out of my grasp, and there was no such thing as an uncontrolled flight...at least not anywhere near MCAS Cherry Point or New River. Lord, today, if someone tried to fly a hundred feet above the beach from Beaufort to Ocracoke, the FAA, the DEA, the Park Service, the Marine Corps and Homeland Security would all be drawing straws to see who would have the honor of blowing the poor idiot out of the sky.
So now I play guitar and fly fish.
Geoff
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