Your tax burden is more than federal

Published on Monday, 14 April 2014 22:30 - Written by

Let’s talk about taxes — no, not those taxes. Everyone’s attention today is on federal income taxes, and as important as those are, let’s not overlook the rest of the tax burden we all bear.

April 15, Tax Day, is a good time to take note of the state and local taxes that support other parts of government. It comes in the spring, when municipal (city and school board) elections are taking place. And because those local public officials are — almost by definition — more responsive to local residents, now is when we can all have a significant influence on our tax bills for next year.

The Bloomberg News Service recently studied local taxes, and found they’re growing — even as pressure from conservatives is having an effect in Washington. The “Reagan Revolution” bypassed state and local “tax fiefdoms,” the news agency found.

“More than any other state, Illinois illustrates how local taxing bodies flourish across the U.S., whether urban or rural, Republican or Democrat,” Bloomberg reported. “The governments duplicate services and burn tax dollars at the same time states slash money for education and Washington cuts discretionary spending. In Illinois, which has the 11th highest state and local tax burden in the U.S., overlapping government agencies managing everything from mosquito abatement to fire protection collect billions of dollars, employ tens of thousands and consume resources that could help pay pension deficits and $7.5 billion in outstanding government bills.”

But we don’t always notice those “smaller” taxes.

“Taxing districts — parks, libraries, fire protection and others — make their presence known in the small print on tax bills, through property and other assessments,” Bloomberg explained. “Small-government activists such as the Tea Party concentrate on cutting federal and state spending.”

Local taxes are not an insignificant expense — for any of us.

On average, state and local taxes (in various forms) gobble up 9.9 percent of an American’s income, according to the Tax Foundation. That’s not as high as the 17 percent the federal government takes, but it’s still substantial.

In East Texas, it’s easy to overlook the numerous taxing entities because property taxes are usually rolled into our mortgages. We pay them as part of our monthly checks to the bank.

Even if we see a tax bill from the Smith County Tax Office, we might only pay attention to the total — and not see the components of that total, which can include the city, the county, the school district, Tyler Junior College, and perhaps the Emergency Services District No. 2 or a municipal utility district.

Renters aren’t exempt — property owners pass along tax increases.

Now — spring and summer — are when tax policy at the local level is set. Candidates for city councils and school boards are seeking your vote. Do you know where they stand on taxes? It’s a great time to ask.

And summer is when tax rates are set. A penny here and a penny there sounds small — but when we’re talking about multiple taxing entities, those “pennies” can add up. We pay a lot of taxes. Let’s not overlook any of them.