Re: Taxation Thought Experiment

[apache <apache@quux.apana.org.au>]

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