OT - I don't _hate_ McMansions

Von Fugal von at fugal.net
Fri Jun 27 20:47:15 MDT 2008

<quote name="Dave Smith" date="Fri, 27 Jun 2008 at 12:43 -0600">
> Von Fugal wrote:
>> I'm all for scientific advancement, but 40% of my income is an aweful
>> lot. If everyone in the country was 40% wealthier... well, use your
>> imagination.
> Are you sure you pay 40% of your income to taxes?
> I tracked all my taxes for a month (every piece of tax: sales tax,  
> property tax, gasoline tax, income tax, social security tax, phone bill  
> taxes, etc), and it wasn't that high.

Interesting... I pulled that number out of the air (maybe I heard it
somewhere and my subconscious brought it up) but I look at a wikipedia
and hey look! 40%! wow I'm good! Then another figure: "government will
collect 30.8% of the nation's income for 2008." And that doesn't even
account for inflation, the hidden tax. What? You _really_ don't think
that government benefits from being first to use new money where
everyone else pays the price? Sure sounds like a tax to me.

Not bad for pulling a number out of the air, if I do say so myself.

Just for fun, let's do a little excersise.
Your employer pays about 6.5% sales tax on all goods he buys, and
assume supplies cover about 50% of expenses. That's 3.25% of total
employer cash flow.
I'll leave out employer income tax because I don't know how it would
factor in.
You, average joe american, let's say you pay approx. 15% income tax.
You also pay 6.5% on sales tax, assume 40% of cashflow, so 2.6%.
Another 10% of your cashflow goes to gas (probably conservative value
here) which is taxed at about 13%, so another 1.3% of cashflow.
Let's assume about 40% cashflow goes to rent/mortgage/debts/whatever,
we'll ignore the intricacies and forgoe estimating tax figures on that
portion of your income.

Jacob gives me this nice formula for tallying these 'discounts':
1 - prod { discount d | (1 - d) }
0.0325 employer expense = 0.9675 (1 - d)
0.15 income tax = 0.85
0.026 sales tax = 0.974
0.013 gas tax = 0.987
1 - (0.9675 * 0.85 * 0.974 * 0.987) = 0.2

That's 20% just for this vastly over simplified excercise. I can
certainly imagine it being much worse. After all, we left out employer
income tax, other employer taxes, HALF of your cashflow after it goes
into your pocket, and this STILL doesn't account for inflation. And
don't forget the taxes paid on gas to deliver all your goods, this cost
gets passed on to you.

Von Fugal
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