Supposedly, death and taxes are two things that no one can escape. While the saying may be true, tax bills are often less financially damaging than you may think. Here are some reasons your tax bill is actually not that bad.
Most Other Developed Countries Pay More
In a large number of European countries, the tax burden is much heavier than in the United States. More than 20 developed countries have taxes that are above the average rate in the United States. In the U.S. the average earning adult will pay around 30% to taxes. This includes federal, state, Social Security, and other collected taxes. Some countries such as France pay a hefty 50% in taxes to their governments.
Plenty of Write Offs are Possible
One of the great things about the United States tax system is that there are a number of write offs and deductions. Everything from medical to school bills to business gifts can be written off as losses for lower taxes. With the amount of taxes that are collected and the ability to write off, most people come out not paying much to Uncle Sam at all.
Savings Helps
Putting money into a 529 college plan or a retirement fund can decrease your tax bill. This allows you to keep money on hand to use for expensive occasion and actually shelter that money from being taxed. With the ability to save to reduce taxation, your tax bill is less awful than you may think at first.
Sales Tax is a Deduction
If you bought some hefty items, consider deducting sales tax. Sales tax can count as a write off during tax time, which may allow you to decrease your bill. Lowering your tax bill based on the taxes you have already paid is a great way transfer your tax load from all at once, to day to day.
Image credit: Colin Harris