How much do you have to earn to rent a car = 4 times the rental fee (Taxed at 75+%)

Arizona has one of the highest taxes and fees on rental cars, approx 28.8%

Wisconsin was approximately 20% and has now added an $18 fee per transaction.

In 2008 a married self employed person of middle income, taxable income of $65,100, is in the 25% tax bracket. This means that his marginal taxable income, "the next dollar earned" will be taxed at a 25% federal tax rate. Since he is self employed, he will pay almost 15% in self employment taxes. The state will tax at 6.5%. If he spends that money locally, it will generally have a 5.6% sales tax. That is a total of 52.1%. He only gets to spend 47.9 cents of a dollar earned.

I am planning a trip to Arizona. A rental car will be $630. The taxes and fees are $182. That is 28.8%.

Lets do the simple math:


federal tax rate 25%

SE Tax 15%

Wisconsin 6.5%

Rental car fees
and taxes 28.8%


Total taxes ===========
and fees 75.3%

Now anothe simple formula.

We need a net of $630.

You need to earn $2520 to net $630

Gross $2520

Tax 75% 1890
========
Left to spend $630


Can we afford any additional taxes or fees on our income.


I would like to hear from any politician on how we will be able to travel. Will this not kill tourism. How much can/will it go up. An increase of 5% means means you must earn $3,150 to pay for the $630 car rental.

Don't believe me, do the research and math. Try to prove this wrong.

I would like to hear from any politician on how the "rich" are being taxed.

I would welcome a comment from

Congressman Jim Sensenbrenner
Governor Jim Doyle
Senator Herb Kohl
Senator Russ Feingold