A Tax-Free Job

The great majority of Americans are ill-informed when it comes to the taxes they pay. Everyone knows what their gross salary is but very few people can actually figure their net, spendable income after taxes. Look at our tax worksheet and example to see how amazing a tax-free job really is.

When we speak of taxes, most individuals translate that to mean Federal taxes. That's pretty easy to figure out . . . you take your marginal tax rate and deduct it from your gross salary. Unfortunately, Federal Income Tax is only one of the many taxes we are subjected to as U.S. citizens.

When you work overseas you are exempted from Federal and State taxes. The U.S. government allows you to exclude the first $75,000 in annual income provided you have worked 11 consecutive months outside of the U.S.

Unfortunately, most other countries overseas also have thier own taxes which you are subjected to. The major exception to this is the Middle Eastern countries.

According to U.S. Representative Tom DeLay, the average American earning $50,000 will pay 52% of his gross income in taxes and regulatory expenses. How could this be? A list of some of the taxes and regulatory expenses you are subjected to is located on the right.

As you can clearly see, your tax burden doesn't end when you get your paycheck. Many of the taxes above and all of the regulatory fees are paid from your so-called "net" income. No wonder that the average American is unable to save money.

Most of the Islamic, Middle Eastern countries (Saudi Arabia, Kuwait, Emirates, etc.) do not have income taxes at this time and most do not charge sales taxes or property taxes either.

The advantage is apparent . . . if your gross income is $50,000, your net income is also $50,000. Add to this the fact that most positions offer free housing with paid utilities, free medical insurance and a transportation allowance. Your major expenses are to purchase your food, clothes, entertainment and other personal items.

For a good idea of what this would mean to your bottom line, take your current gross income and subtract your food bill, your clothing bill, your entertainment expenses and some miscellaneous expenses. The amount left over is the amount you could put in your savings account. Compare that to what you are now able to save. You can fill out the tax-free income worksheet to see exactly what the bottom line would be for your situation.

For tax information, always consult your tax professional

Take a good look at some of the taxes and regulatory items you are forced to pay for. It should make you see red!

Federal Income Taxes

Social Security Taxes (7.65%)

Medicare Tax (3%)

State Income Taxes

Federal Excise Taxes

Property Taxes

School Taxes

Utility District Taxes

Sales Taxes

State Gasoline Taxes

Federal Gasoline Taxes

Capital Gains Taxes

Transfer Fees

Automobile Registrations

Disposal Fees

Drivers License Renewal

License Fees

Various Required Insurance Permits (Building, Remodeling, etc.)

Homeowner Maintenance Association Fees

and many, many more