Four Big Tax Myths

Here in the United States we just finished tax season (the deadline for filing passed on the 15th of April). I don’t usually talk about economic issues here, because I’m a science guy not a money guy, but my skeptical colleague and friend Jamie Berstein from Skepchick knows money, economics, and taxes way better than me, and she recently wrote a killer blog post on tax myths. Read on 🙂

4 Myths about Taxes

If you’re living and working in the U.S. then you know today is that most infamous of “holidays,” Tax Day. You are either rushing to finish your taxes and get it to the post office before they close or are smugly sitting back and relaxing because you finished your taxes ahead of time to avoid the last-minute rush.

As one of the latter who already received and spent most of my refund weeks ago on new clothes and buying the geeky t-shirt quilt Mary made to raise money for SkepchickCON (which my cat has since claimed for himself — See featured photo), I thought today would be a perfect day to bust some myths about taxes. These are meant to apply only to tax system of the U.S. though there may be parallels to systems used in other countries.

Myth #1: Progressive income tax systems encourage people to work less or avoid promotions because if you make enough more money to cross into a higher tax bracket, you’ll actually be taking home less money after paying taxes.

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Myth #2: Flat taxes are fairer because everyone pays the same amount.

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Myth #3: No-income tax states have low taxes and still manage to get by just fine. They are proof that we can still have a thriving economy while keeping taxes low.

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Myth #4: Tax Deductions are a way for the government to save people money without spending any money.

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For full details and explanations, read Jamie’s full post at Skepchick.