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BUSN380 Week 2 Threaded Discussion – Disposable Income & Alternate Savings Vehicles

BUSN380 Week 2 Threaded Discussion – Disposable Income & Alternate Savings Vehicles

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BUSN380 Week 2 Threaded Discussion – Disposable Income & Alternate Savings Vehicles Identify and present all taxes you pay during the course of a typical year. Include taxes that are called fees (such fees are really taxes by another name). Some of the taxes you pay may have to be estimated (i.e., sales taxes). What is the percentage proportion of these taxes in relation to your income; and, with respect to your disposable income (that is, income after taxes), what are the implications insofar as your spending behavior is concerned? My present occupation while in school is a federal work-study award that pays $3000 per semester. My income for 2010 was a little over $6485 so I did not have to pay federal tax. Any grocery items and food, restaurant meals, and clothing or shoes priced over $110 that I bought in New York City were subject to 8.875% sales tax. Time Warner demands their monthly state and federal taxes, and when I make international calls, use Operator Services or Directory Assistance, my taxes increase based on usage. If those international calls are to mobile devices I incur additional charges, and pay for taxes and fees associated with Digital Home Phone service as well. Con Ed charges sales tax at $4.5%, a Merchant function charge, GRT and other tax surcharges, and a delivery charge for maintaining their electricity delivery system. This is collected on behalf of NYS and/or my locality SBC/RPS and include charges for delivering the electricity, reading and maintaining the meters, a basic service charge, and, charges for billing and payment processing. There is a temporary NY State surcharge that supposed to cover new fees imposed by the state …thank goodness I don’t pay for gas! What information is used to compute taxable income? What parts of computing taxable income mentioned in problem #1 on page 131 of your text relate to your financial situation? In the case of Thomas Franklin, the following tax information was used to arrive at taxable Income: Gross salary, interest earnings, dividend income, 1 personal exemption, itemized deductions, and adjustments to income. To arrive at the amount he would have to report as taxable income, he added gross salary, dividend income, and interest earnings, then subtracted adjustments to income, Itemized deductions and the personal exemption.
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Of the tax info listed in the problem I had Regular income, and one personal exemption. Understanding the basics of how to arrive at taxable income is a great starting point to understanding our tax system. As mentioned within the lecture, I hope you have had a chance to take a virtual field trip to to the IRS web site.
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