IN THE FACE OF AFFIRMATIVE ACTION

IN THE FACE OF AFFIRMATIVE ACTION AND OTHER DISCRIMINATORY REQUIREMENTS

How do I begin to talk about our taxes and how they are impacted by the implication of the above title? It would probably take less time and less energy and thought to just take notice of the “Bake Sale” of cupcakes at Berkley as was on the news today; however, I had already begun to assimilate a lot of data from government sites relating to the impact of taxes on an individuals purchasing power in the USA.

Before reading this you may remember that Texas, Illinois and other states have implemented the “Dream Act”, assisting some illegal immigrants in obtaining their college degrees. Without being explicit I will just say that every ethnic group in America receive some type of discriminatory assistance, that is other than Caucasian American born citizens, who contribute to their causes, many that are funded by tax dollars.

So today I will share with you some of the facts. But remember that there are many fluctuations regarding the numbers that I will post. The numbers here are based on the states of Mississippi, Massachusetts and California.
These states were chosen from the National Stats of median hourly wage including all occupations From the Bureau of Labor as of May 8, 2010 because. Mississippi has the lowest average hourly income and nearly the highest State Sales Tax. Massachusetts has the highest average hourly income and one of the lowest State Sales Tax. California has the highest State Sales Tax. Also keep in mind that State Income Taxes and tax exemptions for food purchases have not been included. These two facts vary from state to state and were not considered in the states I have elected to concentrate on.

Assuming that the cost of housing is 30% (28-33) of income
And the cost of food is 12%
And utilities are 8% (heating & electrical only)
Payroll tax are Fed Income Tax 15%
Social Security 6.2% (4.2% this year)
Unemployment 6.4% (self employed 10.4%)
And that your income is (Based on national average (combined all occupations)
Mississippi $12.83/hrLowest & State Sales Tax 7%
Massachusetts $25.82/hrHighest & Sales Tax 5%
California has the highest sales tax:
Wage $18.21 Lowest average Sales Tax ( 7.5%)
Wage $24.39 Highest Average Sales Tax(7.5%)
Several States have no state sales tax

Spendable income after cost of housing, utilities and Payroll taxes and State Income Tax:
This formula does not account for other necessities such as transportation and insurances for home, auto, life and health care. Nor does it take into account that some states have sales tax exemptions for food.

Mississippi housing cost: $12.83X30% = $3.84
Utilities 8%=$1.02
Payroll Tax IRS 15%=$2.07
Social Security 6.2%=$0.85
Unemployment 6.4%=$0.88
Balance ………………………… …..$4.17/hr
Balance after State Sales Tax@7%=$3.87/hr

Massachusetts housing costs:$25.82X30% = $18.07
Utilities 8%=$2.08
Payroll Tax IRS15%=$3.97
Social Security6.2%=$1.60
Unemployment6.4%=$1.65
Balance $8.77
Balance After State Sales Tax @5% $8.33

California has the highest sales tax:
Wage $18.21 Lowest average @( 7.5%)
Wage $24.39 Highest Average @(7.5%)
Low Wage Housing @ 30%……=$5.46
Utilities @ 8% =$1.45
Payroll Tax IRS@ 15%=$2.73
Social Security @6.2%=$1.12
Unemployment @6.4%=$1.16
Balance $6.29
Balance after State Sales Tax @7.5% ($0.47)$5.82

High Wage Housing 30%=$7.31
Utilities 8%=$1.97
Payroll 15%=$3.65
Social Security 6.2%=$1.51
Unemployment 6.4%=$1.56
Balance = $8.39
Balance after State Sales Tax @7.5%($.062)=$7.77

The actual percentage of income after housing, utilities, taxes and sales tax assuming all income is used for purchasing and does not allow for insurances, medical, transportation and other essential needs.
Mississippi 30%
Massachusetts slightly over 32%
California @ low Wage 32%
California @ high Wage slightly over 31%

COST OF LIVING numbers are based on 100. The lower the number, the least the COL is. The Higher number reflects a higher COL. The numbers are reflective of deviations from the base of 100.

Mississippi 13
Massachusetts 41
California 49

I suggest that anywhere 30 to 32 percent of wages is inadequate to properly purchase Transportation (even public transportation), Health Insurance (or co-pay when insurance is purchased), Home and Auto Insurance, Life Insurance, Education, Clothing, Home maintenance,and communication expense. Heaven forbid entertainment (including television) and travel.

Thank you for reading, please post your comments on this blog.