Over Taxed | Taxes Paid Over The Life Of A Vehicle
I'm not too bad at math but am by no means a tax expert
however, this morning while trying to understand the endless nonsense of taxes which seem to make no sense at all, I have come to the conclusion that I am to liken the tax information to a mom's cry of "because I said so". That's about the best explanation I can get from the endless reading of tax literature...Makes no sense but this is what you are told to do.
Well after a few hours of frustration I am deciding to get guidance from a financial advisor (dad) who may be able to better explain why the government "mom" seems to just want you to "do what I say". LOL
I got to pondering the fairness of all of this tax stuff. Not only do you lose a great deal of your regular income to taxes but when you factor in the taxes you pay on everything you purchase and the taxes others pay on everything you sell, you really don't have much to call your own...OK this is a rant and one I am sure all of you thought about but it was on my mind this morning and I thought it would make a good post.
Some quick calculations on what is a possible senario for the lifespan of just one vehicle...
A vehicle is purchased new at a price of $50,000
and taxed at a rate of 13% (NL) = $6500 in taxes
The total amount then paid is $56,500
After 2 years it is sold for $40,000
+ 13% tax = $5200
2 more years (4 year old vehicle)
+13% tax = $3900
2 more years (6 year old vehicle)
+13%tax = $2210
2 more years (8 years old)
+13%tax = $1248
2 more years (10 years old)
+13% tax = $416
Sell for scrap at 12 years old for
+ 13%tax = $65
Scrap yard sells parts for a total of
$3000 all parts are taxes 13%
Total taxes paid on one vehicle whose original value was $50,000: $19,929
One vehicle can incur 39.86 % taxes OUCH!
Just a random thought.