Surtax
Categories: Tax
Taxes...the bane of every hard-working, talented, high-earning person's existence. What’s worse than taxes? Taxes on top of taxes, a.k.a. surtaxes.
A surtax is a tax that’s levied on top of another already-existing tax. A piggyback tax, oftentimes earmarked for a specific purpose...otherwise, they’d just raise the already-existing tax.
For instance, a 10% surtax was placed on individual and corporate income to fund the Vietnam war. In progressive tax countries like the U.S., the burden of surtaxes falls more on higher earners, the higher the marginal tax rate is.
Since surtaxes are asking for a lot (we’re already being taxed, man), they’re oftentimes only applied to people and businesses making a certain minimum income. France was known for their wealth tax, a surtax on people who make more than a certain threshold of money. However, the French wealth tax disappeared in 2017.
Who else has played the surtax game? Germany, who probably takes the trophy for longest surtax on its people ever. There was a flat 7.5% surtax on all personal income in 1991, which was reduced to 5.5% in 1998, which is still in place. This almost three-decade-long surtax was for the purpose of joining Eastern and Western Germany. Are we there yet, guys? Time will tell if this surtax ever falls off of German’s plates.
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Finance: What is VAT?5 Views
finance a la shmoop what is the eighty or VAT well it's this what okay then I
never mind Breaking Bad was awesome though anyway in finance land VAT or V.A.T[Car drives by financeland sign]
stands for value-added tax and it is simply a consumption tax like the tax
rate on anything you buy in Massachusetts is say ten percent so you
think that car cost thirty grand no it was thirty three grand and you'll pay [Car on a driveway]
other v.a.t.s like a tax for your license plate registration and other
stuff note that the V and the A in their value-added yeah and it's a fair
question to ask value-added for whom and the answer is the government the taxman [Uncle Sam poster appears on wall]
v80 tax is that three dollar gallon of gas at the same rate for Bill Gates as
it does for Joe Sixpack it is a regressive tax that is rich in poor
people all pay the same rate and yes Bill Gates jet probably uses more gas [Bill Gates stood by a jet]
than does Joe six-packs but the rate per gallon is the same and this causes
controversy among various political factions who feel that it's wrong to tax [Political figures speaking on stage]
the poor at the same rate as the rich well when it comes to income tax the
rich are taxed vastly more not just in volumes of dollars taxed because they
earn more money but in the rate of tax applied like let's punish those
hard-working plumbing parts suppliers and reward the guy who's asleep at the [People using laptop on benches]
tollgate taking the five bucks like someone in a blue state making thirty
grand a year pays fifteen percent tax on their last dollar someone making 500
grand pays like fifty cents or half so over time a number of politicians have
suggested that v80 should somehow have an income level overlay that is the
buyer of a given gallon of gas should state what income tax bracket they're in [Man unscrewing gas knob]
when they go to the gas pump and that for Bill Gates that gallon should cost [Gas pump filling up car]
like thirty eight dollars whereas for the Union Tollbooth worker yeah wake up
there buddy five bucks each time well they only have to pay two dollars for
their gallon of gas fair not fair well ask the toll booth guy
you know when he wakes up [Toll both man sleeping]