Something I’ve only realized lately, when I saw our electrician’s bill for the work he had done in our garage [installing the tankless water heater], are two facts:
- Taxes here in Texas are very low.
- Taxes are only levied on the costs for material, not on the wages.
It was only 8.25% which our electrician put on the bill for taxes, and that on the material only, not on the labour. Maybe that is a sales tax. Extremely unusual for someone like me who is used to 19% Value Added Tax [VAT] on absolutely everything. But enjoyable, of course. 🙂 That there is no tax on labour may be because there is no such thing as an income tax here in Texas. Enjoyable, too! An income tax is only levied on the federal level by the IRS. But then, property taxes are much higher hiere in Texas than they are in Germany.
What makes me, as a German retired civil servant, quite angry, though, is that I have to pay income tax twice, in Germany and here in the US. To my mind it is well-nigh impertinent that I have to pay federal income tax here in the US, where I don’t have any income at all. My German tax is deductible here, though, but not to the full amount, and thus I still have to pay something to the order of $1,5oo here in the US. Crap! 😦 And that in spite of the double tax agreement between the Federal Republic of Germany and the United States of America, which is supposed to eliminate just that, viz. that someone has to pay taxes in both countries.
What I don’t understand, too, in this context of ridiculously low tax rates here in the US, is the fact that quite a large number of politicians – to the best of my knowledge (nearly) all on the Republican side – are still clamouring for taxes to be lowered!
Um diesen Eintrag in Deutsch zu lesen, hier klicken.
- New Washing-Machine, New Landry Dryer (pitstexasexpatblog.wordpress.com)
- Follow the money part 1 (bell-book-candle.com)
- Who Should Pay Federal Income Tax? – Bloomberg (bloomberg.com)