*Note: This was written by a Yahoo! contributor. Do you have a personal finance story that you’d like to share? Sign up with the Yahoo! Contributor Network to start publishing your own finance articles.
In a world of rising costs, it is very hard to keep the household budget under control. Our taxes and cost of living seem to be skyrocketing every day, and it is getting harder and harder to squeeze out those extra pennies to cover our bills and make ends meet. On average, there are five taxes that seem to help increase the current costs of our household bills.
Even with the high cost of living, some states such as Florida have no taxes on their groceries. In my area of Alabama we end up paying a 9% sales tax every time we go to the grocery store, which is one of the highest taxes of this sort nationally. Every month my own grocery bill for two averages out to near $500, and about $50 of the subtotal ends up being the taxes that are added on to my bill. Tax free groceries in every state would free up a small influx of much needed cash.
High Cost of Gas
With national gas prices at around $3.50 and rising every day, many are struggling just to be able to afford to go to work. Government officials keep telling us that they are trying to help control the soaring costs, however over 15% of growing prices end up being the taxes added on by state and federal government. Depending on the state, these taxes can range from 26.4 cents to 68 cents per gallon.
One of the bills that always ends up hurting us the most is the electric bill. It makes me cringe every time I open mine and see the glaring amount. Four percent of the bill is an electric state utility tax. This tax is not as tough as the gas and grocery taxes that are levied on us, but it still adds up in the long run.
On average, I pay about $90 dollars in surcharges and fees on my household’s cell phone bill. Roughly, this estimates to about a six percent tax on my bills. Depending on the state, some people can pay on average up to 18 to 20 percent. This is a staggering amount.
On top of people barely able to contend with the price of their mortgages, many are also being charged some stunning taxes on their property. From 2.88 percent in Connecticut to 7.06 percent in New Mexico, property taxes can be pretty steep.
In the long run, my household expenses are increased by roughly 12 to 18 percent each month due to these taxes (after income taxes have been taken out). The only thing is I know for sure is that my taxes will increase as will my household budget and bills.