‘WTF’ Is the BILLION Dollar Bills Worth?
A lot of us probably have questions when it comes to our paycheck and taxes, but what do you do when the government says you don’t have enough money to cover your basic bills?
That’s the question being posed by a new online survey that asks about your spending habits and how much you pay for necessities, including food, rent and utilities.
The survey, called “Billion Dollar Bills,” is part of a new campaign by the nonprofit nonprofit Taxpayer Advocate Group to raise awareness about how much Americans are actually paying in taxes.
In this survey, tax collectors use data from the Taxpayer Advocacy Group, a nonprofit group that provides information about tax bills, to analyze consumer spending and ask consumers questions.
“We don’t really have any hard data on how much the average American pays in taxes,” said John Kostar, the president of Taxpayer Alliance, a public policy group that is leading the effort.
“But there’s plenty of good data on the average price of necessities, such as food, clothing and transportation, which can be used as a starting point to estimate how much we pay in taxes.”
In this picture provided by the Taxpayers Alliance, tax collector John K. Kostari surveys a shopper at a Walgreens store in Arlington, Va.
KOSTAR: Taxpayers can be quite savvy when it come to figuring out how much they are actually spending on things like groceries, transportation, and utilities.
“For the survey, the TaxPayers.org team asked 1,500 households, which are typically in their 40s and 50s, how much money they pay in total for the basics, such a food bill, rent, utilities and gas.
They then analyzed the results for every household in the survey to determine how much each household pays in total.
The results showed that households in the lowest income bracket pay a total of $2,852 annually for necessities like food and rent.
“If we’re talking about spending on necessities, that’s $4,856 a year. “
We’re not talking about a one-time thing here, but it’s a big difference,” Kostarp said.
“If we’re talking about spending on necessities, that’s $4,856 a year.
If we’re spending $4 million, that increases to $10 million a year.”
For example, the lowest-income household would pay $2.5 million in taxes, compared to $2 million for a household in higher income bracket.
But the highest-income households pay $8,946 annually for the necessities, compared with $8.7 million for the lowest and $7.2 million per household in lower-income bracket.
In this photo provided by Taxpayers Advocacy, a shoker at a Walmart store in Dallas, Texas, looks for bargains at a Sam’s Club outlet.
The Sam’s club outlet sells groceries and clothing at an average price, but the store has a lower-than-average tax bill.
Taxpayers Advocate and Taxpayer Association say this is a typical experience for low-income families.
“I think the average person that works for a living in America today, or even a parent that works in America, they’re paying taxes, either for the government or for the private sector,” Kontar said.
These figures are based on a family’s income.
For example, a family of four making $30 a month, on average, would pay an average of $5,917 annually in taxes on groceries and other necessities, while a family making $50 a month would pay a tax bill of $7,858.
Another example, Kostars said, is that the average household in Alaska pays $1,800 in taxes each year on gas.
So the average tax bill in Alaska would be $7 per gallon of gas.
“The big question for people is: Do you think you can pay it all back?”
The survey asked participants how they spend their income.
The average income of a single person is $37,900, but an additional $6,000 in savings can help lower the tax bill even further.
“So if you had $1 million, you could save up to $7 million by saving that, and then you could pay $7 in taxes if you were saving that down to $3 million,” Kustar said, adding that it’s very important to keep savings close to zero in case you’re struggling.
The TaxPowers.org survey also looked at consumer spending.
It found that the majority of Americans spend more money on their groceries than on other necessities like transportation and clothing.
It’s important to note, however, that while some Americans are spending more money than others, the vast majority of households spend more than others.