Have you ever wondered how much taxes a family of four making $20 an hour pays? You might get sick reading this factual article about taxes on average working Americans. The government fat-cats are gouging and ripping-off everyone with a job, instituting a new form of economic slavery on the people. In sum, the American Dream is dead if nobody can save and invest.

Here’s a comprehensive list of common items in a working family’s budget that are taxed—most don’t even know it. While the federal tax percentage may not seem so bad, the combined taxes on everything needed to live, feed, educate, and maintain a healthy family are enormous and equate to a clandestine form of economic slavery inflicted on all Americans, especially those living  in “inner cities” like New York, LA, Chicago or Boston.

In reality, the combined sales taxes in some big cities are as follows: Los Angeles, CA: 9.5%; New York, NY: 8.875%; Chicago, IL: 10.25%; Seattle, WA: 10.25%; Birmingham, AL: 10%; New Orleans, LA: 10.45%

To see the outrageous tax rates on the working poor earning less than $100,000 per year, read the conclusion below. Get your phone ready to call your local politicians and complain.

Taxable Items in Cities Across the USA:

• Utilities:
  • Electricity – Workers pay taxes and fees on this. Check your bill.
  • Gas for your Car – Workers pay extreme taxes on this in places like New Jersey.
  • Water – Working families in cities must pay taxes on this too.
  • Trash collection – Workers pay taxes on this.
  • Sewer services – Workers pay taxes and fees on this.
  • Phone bills (landline and cell phones) – Working families are subject to high sales taxes and regulatory fees on phones, while many receive free Obama Phones.
  • Internet services – Subject to sales tax and fees. Check your bill.
  • Cable TV/Satellite TV – Subject to sales tax and sometimes a wide array of additional federal and state and local fees and taxes.
• Technology:
  • Computers, tablets, and smartphones – Subject to various tax.
  • Software – Subject to sales tax.
  • Streaming services (e.g., Netflix, Hulu) – Subject to sales taxes.
• Insurance:
  • Homeowner’s/Renter’s insurance – State state-specific surcharges or assessments apply.
  • Auto insurance – State-specific surcharges, taxes, or assessments may apply.
  • Health insurance (if purchased individually) – Workers and small business owners are  taxed as part of income in states.
• Goods:
  • Clothing – Subject to sales tax.
  • Diapers and Tampons – Yes, your politicians Tax these also.
  • Birth Control is Taxed  - Any over the counter supplies are taxed by bureaucrats where they are essentially taxing love.
  • Over-the-counter healthcare products (e.g., pain relievers, first aid supplies) – Subject to sales tax in most states.
  • Household goods (e.g., cleaning supplies, toiletries) – Subject to sales tax.
• Transportation:
  • Gasoline – Subject to federal, state, and local taxes.
  • Public transportation passes (e.g., bus, subway) – May be subject to sales tax in some areas.
  • Vehicle purchases – Subject to sales tax and registration fees.
  • Vehicle maintenance and repair – Subject to sales tax.
• Entertainment:
  • Event tickets (e.g., movies, concerts, sports) – Subject to sales tax.
  • Recreational activities (e.g., amusement parks, gyms) – Subject to sales taxes and fees in many states.

Non-Taxable or Typically Untaxed Items:

• Rent:
  • Subject indirectly to massive sales tax because taxes, insurance, sewerage, water, electricity,  and fees are passed along to the renter in 100% of the cases unless you are in tax free public housing.
  • Some localities may impose a rental tax.
• Food:
  • Groceries – Taxed in some states, but some states do tax food at a reduced rate.
  • Prepared foods (e.g., restaurant meals, takeout) – Subject to BIG sales tax.
• Education:
  • Tax on Child Care,  Tutors, Tuition for primary, secondary, and higher education – Generally taxed heavily unless in a public.
  • Textbooks – Taxed at various levels and authors are taxed at extreme rates.
  • School supplies – Subject to sales tax, though some states have tax-free holidays.
• Health Care:
  • Prescription medications – You would pay tax if you buy any medicine out of pocket, but group health plans can pay.
  • Medical services (e.g., doctor visits, surgeries) – Taxed if you pay out of pocket. Those who show up at emergency room without insurance pay no tax.
  • Health insurance premiums – Taxed if you are a worker or small business not in a group plan. 
• Child Care:
  • Childcare services – Of course this is taxed but you can try to deduct some of it.
  • Childcare products (e.g., diapers, baby formula)  Subject to sales tax, depending on the state.
• Books and Educational Materials:
  • General books – Subject to sales tax.
  • Textbooks – Taxed highly by government of those attending colleges and prep schools.
• Savings and Retirement:
  • Contributions to retirement accounts (e.g., 401(k), IRA) – Taxed heavily as income when withdrawn with huge penalties if you need to pay off debt.
• Health Care Products:
  • Over-the-counter medications and products – Subject to sales tax in many states.
  • Prescription medications – Typically not subject to sales tax.
  • Healthy Supplements and Vitamins – Yes, you are Taxed for being healthy.

Interest Payments:

• Mortgage Interest:
  • Yes, some mortgage interest is taxed if you have a medium size mortgage.
  • A portion of mortgage interest is usually tax-deductible on federal income taxes if you itemize deductions. This deduction can reduce your taxable income.

Home Insurance:

• Homeowners Insurance Premiums:
  • In some states, there may be state-specific surcharges, assessments, or fees that could be added to the insurance premium, which is yet another tax on workers.

The Horrific Conclusion

For a family of four earning $80,000 per year with a $500,000 home and two children, here is the estimated tax burden from state, city, and federal politicians:

Total Estimated Tax Burden:

• Federal Income Tax: $2,500 to $3,500
• State Income Tax: $0 to $2,615
• City Tax: $0 to $1,600
• Property Tax: $7,500
• Payroll Taxes: $6,120
• Sales Tax: $4,000 to $8,000

Total Estimated Taxes: $20,120 to $29,335

Percentage of Income Paid in Taxes by the Working Poor:

A Working Family’s Tax Rate and Percentage Range: Approximately 25.2% to 36.7% of the $80,000 income goes to politicians, bureaucrats, and city, state and federal government regardless of your living in poverty.  Meanwhile, owners of billions in publicly traded stock, pay zero taxes on their holdings of billions of dollars in stock.

After all the fees, taxes, and city levies by politicians, a working family earning $80,000 per year could have up to 36% of their earnings taken away. This $30,000 in taxes could be used to buy food, save for college, pay rent, or buy a car or home.

While politicians like to say that the working poor do not pay much federal tax, notice how the federal government taxes this family only $2,500 to $3,500 but the government then takes another $26,000 away from them in fees, levies, state, city, and  local taxes. In essence, the burden of those not working, free health care, costly wars, a bloated bureaucracy, and immigration is so large that the government must take 25-36% of all money away from moms and minorities who actually work for a living.

Recently, VP Kamala Harris said these words, “A loaf of bread costs 50% more today than it did before the pandemic” “Ground beef is up almost 50%”.  With this type of devastation upon  working families, people are indeed suffering in many cities across the land.

In closing, after all these above taxes, they will overcharge you for tuition and fees at a college and then overcharge you interest on your student loans, where the profit probably goes to some investors or  bankers in New York City, Beijing, London, and Arabia. Overall, every time the government reduces energy production with green regulations and wars, they raise the rates of gas, electricity, and fuel on working folks.

Then, your essential products and food go up 20-30% while you pay another flat 8-10% tax on these products that cost 30% more. Thus, with the inflation caused by the Democrats, Biden, and Harris, the political elites have, in effect, raised taxes by 30% on everything you buy in just three short years, hitting the working poor, union members, minorities, and teachers with yet another economic “kick in the gut”.

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Commissioner George Mentz JD MBA CILS CWM® is the first in the USA to rank as a Top 50 Influencer & Thought Leader in: Management, PM, HR, FinTech, Wealth Management, and B2B according to Onalytica.com and Thinkers360.com. George Mentz JD MBA CILS is a CWM Chartered Wealth Manager ®, global speaker - educator, tax-economist, international lawyer and CEO of the GAFM Global Academy of Finance & Management ®. The GAFM is a EU accredited graduate body that trains and certifies professionals in 150+ nations under standards of the: US Dept of Education, ACBSP, ISO 21001, ISO 991, ISO 29993, QAHE, ECLBS, and ISO 29990 standards. Mentz is also an award winning author and award winning graduate law professor of wealth management of one of the top 30 ranked law schools in the USA.