Once again, you are spouting quite untrue, stupid information. BACK UP YOUR CLAIMS!!!!! GEEZ man.. how many times do I have to tell you.. no one is going to believe anything you ever say, because one, it's always ridiculous, and two, you never back it up with factual data!!!!
I did so once. I will do it again. But I am not going to send you to websites, because you would just discount them.
Instead, I want you to walk through the figures on your own income, the same as I did with mine. Get all of the figures from your governments, and ask businesses what portion of their product prices are their own taxes passed on to consumers (this is hard to get).
First of all, figure your direct taxes. If you are a typical worker, your total direct taxes will look something like this (these are my actual values from 2005):
- Federal income tax: 13 %
- Social tax (SS, MC, SSI, SMA) 7.5 %
- State income tax: 3.4 % (varies by state)
- County income tax: 1 % (varies by state)
- Real Estate tax: 2% (varies by locality)
- Sales tax: 6% (varies by state)
- Trash, sewer, and storm water tax: 1% (my city - required use by law)
- Miscellaneous taxes (utility, personal property, township, etc): 2.1%
Total personal direct taxation: 36 %
(Utility tax is the taxes tacked onto utility bills, not the utility use charges. But if government requires everyone to use THEIR monopoly utility (e.g. the trash collection, sewer, and storm water above) as opposed to letting people choose service providers, then it is a tax.)
Note that I didn't include gasoline tax, auto license taxes, or royalty taxes, since individuals are not required by law to use them.
But there are also hidden taxes:
Because your employer has to pay payroll tax on your job, your salary was reduced by 7.5 percent of your current salary (it is 93 % of what it would have been without the payroll tax).
Note that the business can't absorb this out of profit, because the tax is much larger than the profit. And if you don't want to count it as a reduction of your income, you have to count it as an increased cost of producing the product your employer makes. It costs you the same amount either way.
Subtotal: 43.5%
But now we must consider how much of the purchase price of each product is hidden tax.
The business must pay taxes too. And because the taxes are much larger than the profits, the only other source of money to pay the tax is to raise the price of the product. The taxes paid by each typical business are about 20 percent of its gross income (not profit) from the product. But there are at least 3 businesses the product passes through from raw materials to retail sale (manufacturer, wholesaler, retailer). This assumes the motor fuel taxes for transport are paid by the wholesaler. When these taxes are compounded, they equal around 50 percent of the product price.
That's right. About half of the price you pay for products is tax, because too many governments want to tax business too much! The tax does not come out of profit, but increases the price the business charges for the product. This can happen because all businesses selling the same product are subject to the same tax.
So YOU pay all business taxes on the products you buy.
Since 43.5% of your own income is direct or payroll tax, the rest is your real disposable income, 56.5%. But about half of that is tax, or 28.25%.
Total: 71.75%
I rounded it to 72% in the post, because the amount is approximate.
If you don't believe that, then compare the figures found in the back of the federal 1040 tax booklet. The social taxes and payroll taxes are 15% of the total economy, and 32% of the federal income. The remaining 68% is taxes you pay, either through direct taxation, or through increased product prices.
Since the 32% of the tax revenue is 15% of the entire economy, the entire federal tax revenue is about 47% of the economy. Adding in state and local taxes brings it up to about 72% of the economy.
So only 28% of your income actually went into the production of the products you buy.
The federal statistics hide this, by counting some of the same money twice. They add business income to personal income to get Gross National Income (GNI), forgetting that the personal income comes from payrolls taken OUT of the business income. Using the GNI, they "demonstrate" how taxes are a much smaller portion of the economy.
Liberals refuse to believe these figures, because:
1. They worship government, and can't believe government would do this to them. Instead, they blame the employers for not taking the hidden taxes (which are larger than profit) out of profit.
2. They believe in the disproved Keynesian Economic Theory. According to Keynesian economic equations, government can create wealth by spending money (it cant), and some believe that, if government becomes large enough, people won't have to work (this is preposterous).
If the Keynesian Economic Theory were true, the late 1970s would have been prosperous, rather than an economic disaster. This period showed that the Neoclassical model is much more accurate. But under neoclassical economics, the only source of wealth is work.
If you don't believe me, then show me that I am wrong.