Re: Taxation Thought Experiment

> o TAXES THOUGHT EXPERIMENT
> 
>  1) I generate $100 of productivity for my company
>  2) Company is taxed %30, $70 left
>  3) Company pay shareholders and costs, $30 is left
>  4) Company pays me
>  5) I pay 40% in taxes, so $18 left
>  6) With $18 I can buy a $16.82 object (%07 sales tax).
> 
> Results:
>  1) I see $16.82 realization from $100 productivity increase.
>  * Govt. gets $49.26 of my productivity, or nearly 3 times the amount I get.

The government gets $59.26, not $49.26 (30+16+12+1.26).
That leaves you with 16.74 (not 16.82) - they get nearly four
times as much.

In other countries the situation may be worse, not only due to different
rates of tax, but because of social security contributions, employers tax,
and the like.

Then if you spend your money on beer or fags, you may be paying even
more tax, due to taxes on alcohol and tobacco, leaving the government
with perhaps 10 times as much money as you.  Many imported goods also have
a tax on them (eg. motorcycle import tax is around 50% in the UK).


It is probably more fun to do these calculations without involving
the shareholders, since they are, after all, earning their "cut".

[ Crypto relevance? Assasination taxation? ]

Gary
--
"Of course the US Constitution isn't perfect; but it's a lot better
than what we have now."  -- Unknown.

pub  1024/C001D00D 1996/01/22  Gary Howland <gary@systemics.com>
Key fingerprint =  0C FB 60 61 4D 3B 24 7D  1C 89 1D BE 1F EE 09 06

I got this on the LAN at work.


>Computer Security Awareness Training (CSAT) will be held at CSS on
>November 21, 1996, from 2:00 p.m. to 3:00 p.m., in the South Computer
>Room.  Our guess speaker will be Mr. Tony Escobedo, an FBI Information
>Security Specialist currently responsible for the FBI Security Education
>Program.  The presentation will satisfy our yearly CSAT requirement for
>CSS employees.  This training is mandatory.

Does anyone know this guy?  Does anyone have any questions that they would
like me to ask?  I could take notes and let you know what he says (if
anything).  

I imagine this guy is going to say things like "Don't leave your computer
logged on while you go to lunch" Duuuhhhh...

I'd like to ask very poignant questions since this will be my second to
the last day working for Uncle Sam. (I'm going Private Industry, yeeaa!!)

And I really don't care what my boss thinks of my questions. ;)

Paul.

Oh, I unsubscribed to the list, 500 emails over a long weekend is too
much.  So please CC: questions to george@justice.usdoj.gov and I will
forward all answers to the list. Thanks a bunch....

On Wed, 13 Nov 1996, Gary Howland wrote:

> > o TAXES THOUGHT EXPERIMENT
> > 
> >  1) I generate $100 of productivity for my company
> >  2) Company is taxed %30, $70 left
> >  3) Company pay shareholders and costs, $30 is left
> >  4) Company pays me
> >  5) I pay 40% in taxes, so $18 left
> >  6) With $18 I can buy a $16.82 object (%07 sales tax).
> > 
> > Results:
> >  1) I see $16.82 realization from $100 productivity increase.
> >  * Govt. gets $49.26 of my productivity, or nearly 3 times the amount I get.
> 
> The government gets $59.26, not $49.26 (30+16+12+1.26).
> That leaves you with 16.74 (not 16.82) - they get nearly four
> times as much.
> 
> In other countries the situation may be worse, not only due to different
> rates of tax, but because of social security contributions, employers tax,
> and the like.

... fuel tax, land tax, land rates, enviromental levy, gun buyback 
surcharge, 100% tabaco tax, alcohol tax, vehicle registrations, new tyre 
tax, licences & permits, sales tax, payroll tax, dog tax, airport exit 
tax, drivers tax, compulsory workers compensation tax, superannuation 
tax, medicare tax, income tax, capital gains tax, national parks tax, 
luxury goods tax (funnily enough bras are included as luxury 
goods..what'dya think girls?) ... just to name a few..a very few

On Wed, 13 Nov 1996, Gary Howland wrote:

> > o TAXES THOUGHT EXPERIMENT
> > 
> >  1) I generate $100 of productivity for my company
> >  2) Company is taxed %30, $70 left
> >  3) Company pay shareholders and costs, $30 is left
> >  4) Company pays me
> >  5) I pay 40% in taxes, so $18 left
> >  6) With $18 I can buy a $16.82 object (%07 sales tax).
> > 
> > Results:
> >  1) I see $16.82 realization from $100 productivity increase.
> >  * Govt. gets $49.26 of my productivity, or nearly 3 times the amount I get.
> 
> The government gets $59.26, not $49.26 (30+16+12+1.26).
> That leaves you with 16.74 (not 16.82) - they get nearly four
> times as much.
> 

Actually, if you think about it, they get even more than that due to sales
tax and other such pains.  They _don't_ pay it, so when they have the
money, the money is worth more.

> Gary

 --Deviant
What does not destroy me, makes me stronger.
		-- Nietzsche