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Taxation Thought Experiment
Another thought experiment, comments welcomed:
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.
_______________________
Regards, Our greatest glory is not in never failing, but in rising
up every time we fail. -Ralph Waldo Emerson
Joseph Reagle http://rpcp.mit.edu/~reagle/home.html
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