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