Which U.S. cities charge travelers the most taxes

by Jamie Rhein on

Perhaps you’ve been one of those folks to receive your hotel bill and you clutch your chest in dismay. “My word! How can this be?” you exclaim.

You didn’t touch your mini-bar. You didn’t use the phone. You didn’t slip so much as a washcloth into your luggage. Still, your bill is well over what you expected. What you thought was a bargain vacation has turned into more than you counted on. How come? Taxes, my friend.

The National Business Travel Association recently released information from its study that ranks cities according to the ones that charge the most in taxes and those that charge the least. Taxes on hotels, restaurant meals and gasoline are a handy way for cities to generate revenue. How much revenue depends upon the city. Some cities are a bargain where taxes are concerned. It doesn’t mean they are cheap cities. Their expensive factor is not due to taxes.

Would you guess that Honolulu is the least expensive city tax wise? Three of the other four cheapest tax cities are in Florida. Maybe there is enough revenue generated by tourism in each of them.

The most expensive city for taxes is Chicago.

Here are the top five cities in each category. To read the report on the other 50 cities, click here. A warning, though. Reading the report can make your head swim.

Lowest

  1. Honolulu
  2. Portland, Oregon
  3. Fort Lauderdale, Florida
  4. Fort Myers, Florida
  5. West Palm Beach, Florida

Highest

  1. Chicago, Illinois
  2. Nashville, Tennessee
  3. Charlotte, North Carolina
  4. Seattle, Washington
  5. Houston, Texas

Thanks to Steve Stephen’s recent article in the Columbus Dispatch for this heads up on travel costs that can sneak up on you when you’re trying to budget.

Economics abroad: Denmark surpasses Sweden for world’s highest tax burden

by Anna Brones on

When it comes to choosing a place to live abroad, we all know the Scandinavian countries have it made. The standard of living is high, upper education is subsidized and everyone seems to have a job and a nice living situation. But all of this comes at a price; it’s called taxes.

Sweden has long been known for its high taxes, the highest in the world in fact. But Denmark recently beat out it’s northern neighbor for first place according to Danish newspaper Dagbladet Børsen (a daily business and finance paper). Based on a figure giving by tax authorities in both countries, the Danes have the highest tax burden in the world at 48.4%, compared to the 47.8% that Swedes pay. As an interesting side note, Swedish and Danish salaries are paid in krona and krone; both countries still use their own currencies instead of the euro.

Although the percentages for taxes may seem high for those of us that don’t live in more socialized countries, the Scandinavians certainly aren’t feeling an economic burden; the standards of living in these countries is quite high. In the most recent United Nations Human Development Index, Finland, Iceland, Denmark, Norway and Sweden were all ranked in the top 15. Add to that government structures that provide for universal health care and paying near 50% for taxes seems to make a little more sense. Health care, Volvos, vikings, IKEA and moose; who wouldn’t want to live there?

Combining Business and Pleasure and how to Write it off

by Neil Woodburn on

While travel for most of us means good times and new adventures, for others–such as businessmen–it can be simply hell.

Jetting all over the country attending meetings or pitching goods, however, does have an advantage here in the States; it is tax deductible. Well, mostly.

Travel the World and Write it Off is a great little article in Budget Travel detailing the complicated tax laws and how one can take advantage of them by combining business and pleasure. In a perfect world, I would be able to fly to Paris for a single meeting, spend the next two weeks having fun, and then write off my hotel, food and flights for the entire time. Unfortunately, this is not the case: Uncle Sam is not that easily fooled.

Different rules apply for domestic vs. foreign travel; in the example provided above, you could only write the trip off if “business occupies at least 75 percent of your workdays.” And no, that trip to the Louvre is not considered business.

Of course, if your company reimburses you for your travels, this is all a moot point. If you work for yourself, however, check out the article, or irs.gov, to figure out the loopholes and somehow get Uncle Sam to pay for part of your trip.

Forget Flying for Cheap: Have Them Pay You to Fly!

by Iva Skoch on

Who doesn’t love to fly cheap? Well, now a European airline is offering tickets for less than zero. Yes, SkyEurope offered tickets that sold for MINUS 10 Czech crowns (about 46 U.S. cents) for some one-way tickets. Heck, I thought it was cool when I bought tickets from them for “free.”

Does this honestly mean they’re paying you to fly? No, the hitch is that you still have to pick up the taxes and maybe some fees, so you might be surprised at the final cost, all-in. For example, a survey by Prague Business Weekly found that another carrier advertised a 7 euro flight, which, after all fees and taxes were included, netted to 265 euros.

This kind of deal has stirred the interest of regulators and legislators, some of whom think this is fraudulent advertising. The article points out that the EU might step in to require carriers to post all applicable taxes, charges, and fees with the advertised price, but says that regulation is at least 18 months away.

My thoughts on this? Look, you still can back out of buying the ticket at any time until your credit card is charged. Does anyone really feel ripped off when all they are paying is the taxes?