[Homestead] The GOP on government spending: Borrow 'til the Chinese own us!

Clansgian at wmconnect.com Clansgian at wmconnect.com
Fri Oct 28 14:46:40 EDT 2005


Interesting.

The bit about paying an average of 40% of all our money in taxes has another 
aspect to it and it is this:  to get the *direct* tax burden off the backs of 
tax payers, it has been popular to tax corporations.  But in reality 
corporations never pay taxes, they pass the taxes along and the consumer (aka taxpayer) 
pays them in addition to the taxes he's already paying.  Depending on whether 
you view it as included in the price or added to the price, the amount of 
embedded income tax in most things purchases is between 22% and 30%.  In reality 
you earn $100 and pay $40 in some form of direct tax or the other.  Then when 
you spend the remaining $60, about $13 of that goes to pay the taxes that 
manufacturer, suppliers, transporters, etc. 

James



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