Showing posts with label Money. Show all posts
Showing posts with label Money. Show all posts

Sunday, August 17, 2008

Taxes, Taxes, and Even More Taxes

Did you ever wonder how many taxes you pay out in a typical day? I'm not talking about the huge taxes on things such as your home, property, paycheck, etc. I'm referring to the myriad of taxes we thoughtlessly pay out on a daily basis.

On your way to work you have to stop and put gas in your car. While filling your tank, you are paying an average of 35-45 cents in taxes on each gallon of gas you pump. That means for 10 gallons of gas, you are paying $3.50-4.50 in taxes. The Federal, State and City goverments all get a cut.

For lunch you decide to eat out. Enjoy the food; because along with your meal, you are paying a State and a City tax.

On your way home you decide to pick up a few things. Depending on where you live, you might be paying taxes on groceries. Non-food items are definitely taxed by both the state and city in which you live.

After dinner you decide to go see the latest blockbuster movie. When paying for your admission, you don't just pay a state tax, you are also paying a city "entertainment" tax (I love that one---taxing you for having fun!). Getting snacks at the theater? Again, food, plus State and City taxes attached.

On your way home, you have that snack attack come upon you, and only an ice cream cone will take it away. On top of whatever you pay for the icy treat, State and City taxes once again are a part of your bill.


Do you see where this is going? Aside from walking down the street, just about everything we do has some sort of tax attached to it. Don't believe me? Think about what you do on a typical day, and determine whether or not you are paying taxes all day long.


Have a pet? The county you're in probable requires a pet license (tax!). Want to go to your favorite state park? It most likely has a "Day Use Fee" (tax!) in order to enjoy the benefits of the park.

How about a trip to your favorite amusement park? You'll pay taxes on the cost of admission, taxes on any food you buy, and on any souvenirs you purchase.Oh yeah, you probably pay a parking fee (tax!) too!

When you buy a car you pay taxes on the car, and a tax for registering it with the State. Then, every year that you own that (or any other) car, you get to pay a licensing fee (tax!) to be able to continue driving around in a vehicle that you already paid taxes on. In the buisiness world, this is called double dipping--a practice in which you provide a product or service only to get a better version a year or so later and charge the same customers a larger sum (for the new product) than they paid a year ago. In the case of our car licensing fees (taxes!), this happens every year; literally for the rest of your life.

To me, the most mind-boggling tax of all is what happens after you die. The State and Federal governments both get a cut of whatever estate remains (the "Death Tax")--and it is a huge cut at that. Then, those who inherit the remainder of the estate usually have to pay taxes on that inheritance!

ARE YOU KIDDING ME?!!!


At some level, I think politicians secretly hope that no one will figure out that the taxes paid by the average American in a single year is staggering. Since they bear the tax burden of this country, I'd love to know how much the average middle-income American pays out in taxes (in whatever form) over the course of a year. I bet it would be in the area of around 50-60% of their income.

One of the catalysts for the colonies breaking away was Taxation Without Representation. In a way, our elected officials are doing the same to all of us by taxing literally everything we do. They hold quiet legislative meetings for 'public input,' then when few people actually show to speak out about the taxes, they pass the proposals on from one sub-committee to the next until it becomes law, and yet another unwanted tax is added to our daily financial burden.

I encourage all of you to write your political leaders and demand answers (as is our Constitutional right) as to the why's of the current US tax code, and ask, "When will it end?" Then, if they balk or refuse to answer, use the power of your right to vote, and elect a new person in his/her stead.

Nothing will ever be done if no voice ever rises above the madness of our tax system, and we call upon our leaders to stop burdening us with taxes that only further shackle the very financial legs that this country stands on. Remember, the future of our country is literally in the hands of its people. So what will you choose to do?

Thursday, July 24, 2008

Pro Holdouts

Where, in this great land can you decide that you won't report to work; that you can tell your boss that you won't work unless he pays you more money; and that you will stay home until your demands are met?

I don't know about you, but I'd be out of a job really quick. Employers simply don't tolerate that sort of whining, insubordinate behavior from their employees. It's counterproductive, and is a tremendous detriment to the company.

There is however, one industry where this is not only allowed, but is nauseatingly common. I'm talking Professional Sports. In particular, Football. This is the one sport that outdoes all the others in a pathetic dance of money for play. Don't get me wrong here, I am all for athletes making money; but there are two things wrong here.

First, the exhorbitant salaries being paid out are ludicrous, at best. Second, these athletes (I say that as a general term only) seem only to care about money, and making more of it than the next guy.

Let's look at the first issue--salaries. Pro football players are in camp 1 month (plus a couple of weeks in the Spring), then play 16 regular season games over the course of about 4.5 months. So, they actually work about 7 months a year, aside from appearances, instructional camps (for which their usually paid), etc.

Now, say a player earns $5M (million) every year. That's a little over $700,000 per month for each month worked. That breaks down to $175,000 per week worked. That breaks down to $29,166 earned for every day of work.

Not a bad living (Duh!!!). Plus there are any endorsement deals, playoff monies, appearance fees, etc, etc, etc. Now, I know many of you will be screaming about revenue sharing, Union contracts, League advertising incomes, owner wealth, etc.

For me, what it comes down to, is a large number of pro players make more for a single day of work, than many hard-working Americans make in an entire year.

Which brings me to issue number 2...

...Athletes who demand more money.

Holdouts drive me crazy. These players want an ever increasing piece of the proverbial pie. They seem to be so caught up in their quest for money, that they forget a basic rule of working...you have to actually show up.

When a company contracts with another company for work to be performed, that company expects the second company to actually perform the work to the best results, and also expect them to fulfill the contract to its end.

With pro players, that same expectation is thrown out the window. With one, two, or even three years remaining on a contract that THEY AGREED TO, players will demand more money or they won't show up for work....And they get it!!! The owners generally cave in at some point because they want to field the best team possible which sells more seats, generates bigger ad revenues, etc.

Any parent who has endured whining from their kids will understand this point: Giving in to the whining of a child only teaches them that they will always get what they want if they whine loud enough, for long enough. Owners have a lot of whiners on their hands, and give into their cries way to much. They set this dangerous precedent years ago when free agency began to prosper. Now it's a common (and expected) practice on both sides.

I'm not saying that all professional athletes are this way. I've known a number of wonderful men who did indeed play out their contracts to the best of their abilities. They should be the ones we admire. They should be the role models for our children. But because they don't whine, or make a foolish spectacle of themselves, their incredible contributions are never mentioned or are overlooked at the very least. These are the players who should be the best rewarded, the most recognized when it comes time to sign or renew contracts.

After all, isn't a professional athletes' contract about 'play for pay?' When will the league owners collectively say "Enough!" and refuse to give into these athletes who think they deserve more money than the next guy? Let these whiners fulfill their contracts, then conduct some professional negotiations to increase their pay based on how they performed throught the duration of their contacts.

But, that is in an ideal world, where professional whiners don't really take advantage of their pushover employers and cry that they just aren't making enough money. Poor whining babies. I feel really sorry for them that they just can't make ends meet on $5M, $10M, or more a year.