IRS. Income taxes. April 15. The dreaded audit.
Chances are, if you're like most Americans, those are not among your favorites words.
Whether you're like the guy above who “hates the IRS,” or you gladly pay your taxes — but could be just as glad if you paid a lot less — the fact is, between federal, state, and local income taxes, a “yuuge” chunk of our hard-earned money is spent on taxes.
According to data released this week by the Bureau of Labor Statistics, the average American “consumer unit” — we'll get to that — spends more on taxes than food and clothing. Combined.
Worse? The average tax bill increased by 41.13 percent in just three years — from $7,423 in 2013 to $10,489 in 2016.
In contrast, the average consumer unit before-tax income in 2016 was $74,664, compared to $63,784 in 2013 — an increase of just 17 percent.
As summarized by CNS News, the average “consumer unit” — family, financially independent individual, or people in single households sharing expenses — spent an average of $7,203 on food and $1,803 on clothing in 2016, a total of $9,006, compared to an average tax bill of $10,489.
The only higher average household expense in 2016 was housing — an average of $18,886 — including mortgage payments and rent, in addition to utilities and other related expenses.
During a speech in Springfield, Missouri, on Wednesday, President Donald Trump broadly outlined his tax reform plan, pledging to simplify the federal tax code, deliver tax relief to the middle class, and lower the top corporate tax rate from 35 percent to 15 percent.
As was the case with failed GOP attempts to repeal and replace Obamacare, Trump fired a warning shot across the bow of Congress, as reported by NewsMax:
“I am fully committed to working with Congress to get this job done. And I don't want to be disappointed by Congress. Do you understand me? The United States is counting on it.”
Regardless of Trump's admonition, Senate Majority Leader Mitch McConnell, in early August, threw cold water on any suggestion Democrats would join Republicans in a bipartisan effort to reform the tax code.