The repetitive tax syndrome.
You all are paying 78% of your earnings in taxes.
When you receive your paycheck 7 1/2 percent is taken out for Social Security your employer matches 7 1/2 percent this equals 15%. If your employer did not pay in the seven half percent these can be wages for you.
Now let’s take out Medicare Medicaid and all the other words that are used to describe this other tax.
Let’s take out our federal taxes, our state taxes, pay I bet you are up to over 40% right now. Correct?
Now let’s go fill up our fuel tank. You lost pretty good chunk there didn’t you. You see not only did you pay a large percentage of taxes for your gasoline, but you also paid everyone’s taxes that is involved from the beginning to oil refinery all the way to the cashiers paycheck at the gas station.
Let me explain in further detail. Let’s take a figure of $100 billion to use just for the sake of easy figuring. Let’s say a company earned $100 billion in one year. This company will have approximately a $40 billion tax right off the top. Who pays for the $40 billion you do.
Let us go purchase a new car for a moment. Let’s go get a license plates. Pretty expensive isn’t it. The sales tax on a $20,000 automobile add up fast. Now remember, the $20,000 you spent for the automobile a huge portion of that, goes to property taxes for the automobile manufacture, their 40% tax, the taxes for the sales man. He also had to pay for the fuel taxes that the transit truck consumed while delivering your new automobile, and those taxes for that company as well that delivered the vehicle. The same holds true for every part that is on your vehicle. Example let’s start with the iron ore manufacturing process. His 40% tax, has to be passed on to the purchasers of the iron ore. Now automatically the price of iron ore has just escalated 40%. The costs to transport this iron ore is also elevated remarkably, because you are also paying a 40% tax that the transit Company is receiving to haul the iron ore.
Now let’s assemble in our minds a basic manufacturing plant that produces parts from the iron ore. They are going to need buildings of course. Now these buildings are going to be expensive, because they are paying everybody’s taxes before them involved with manufacturing of the building. We think that cost is passed on to? You of course. Are you starting to see a trend here!
Not this point we don’t even have a single part made yet. We have buildings with iron ore, now an expensive product, for they have paid taxes of the iron ore mines and the taxes of the buildings supplies. This is just the beginning of a long chain.
We need employees, utilities, machinery, and much for before production can even begin. All of which cost a lot of money with a huge part going to pay the prior guys taxes in the chain.
Now let’s jump ahead to a finished part. Let’s ship that part to a car manufacturer. The car manufacturer pays for the property tax of the prior guy in the chain. The car manufacturer also pays for the taxes of of the prior guys in the chain of which if you remember correctly equates to about 40%.
Now let us jump ahead to a finished automobile. Let’s transport for that vehicle to a dealership. You pay for the transport which is huge, the transporter is paying for all of his taxes, all of the taxes involved with his tractor-trailer rig (I’m sure they also have a 40% tax margin above them) the transporter is paying for all of the taxes from the people who drove the well to the cashier at the gas station.
Your new car is now at the dealership, who also gets taxed about 40% for their profits, also paying seven half percent Social Security wages for their employees. Elevated insurance costs,(remember they will also have a 40% overhead to the government, as well as seven and a half percent Social Security overhead with employees. Let us not forget their high property taxes, their high building costs, which is all reflected in the price of a car. The list can go on and on and on.
Let’s sell the car in two years. When the car is retagged, the government makes a good chunk of money again. Another couple years, and the same thing happens again. Even if you do not sell a car, but merely hang on to the you pay property taxes on it every year. If the car is driven for 150,000 miles gets 20 miles to the gallon it will have burned 7500 gallons of gasoline. The government will have made about $5,000 just in fuel taxes alone on this vehicle. Another 6000 simply in taxes when the car is repurchased a couple times. Property taxes on the vehicle as well throughout its life also adds up to a good chunk. As you can see the total approaches roughly what the car cost in the beginning. Isn’t this crazy!
China!
Why are things in expensive from China. After all it should be expensive, due to having to be transported from the other end of the earth 12,000 miles away. First by ship, then by truck.
Perhaps the government of China does not have their hand dipped into the well all way along the chain.
This is why you can walk into a convenience store and buy a watch for one dollar.It cost very little to make. Now before you go on saying that the people in America are getting paid a lot more is the reason being that cost of anything manufactured in America. Believe me when I tell you that these people sweating their tush off for eight bucks an hour would tend to disagree with you, for they can barely make a living off this. American employees are not overpaid by any means. Try assembling the 500 pieces an hour every hour five days a week all the time and you will see that you should get paid three times as much. Simple.
Anything purchased from overseas will usually be cheaper.
Let us take for a moment something simple such as a gallon of rainwater. Basically this is free. Let’s assume I have 10,000 1 gallon containers full of rainwater, sitting in a building. Now I’m going to sell the this water. First I need to figure how much are the property taxes for the building to house water. Second I need to automatically charge double because the government will be getting half.
Hypothetically let me select a figure of $.25 per gallon. Now let me sell the this water. Undoubtedly the water goes to a warehouse, I sell it to them for $.30 a gallon. I’m sure their property taxes are huge. Now let’s throw in the 40% tax as an overhead that they are going to have right off the bat. About the various other taxes associated with this product along way such as testing equipment and the sort all of which are taxed. Anything bought by the company they pay tax on, as well as the taxes of the people they purchase from. Sounds like our free gallon of rainwater is going to be pretty expensive doesn’t it. 4000 gallons is a pretty good load. Now let’s all that product 750 miles.(Ouch) Who’s make all the money? The government of course! Hey, now let’s get that water in the store. This could get expensive, we have to pay the high cost of transporting the product. Now mind you it’s about $2.40 a mile to haul the product around. Why so expensive? Well remember, they have to pay everybody’s taxes before them. Not to mention their own taxes. So what could have been $.70 is now $2.40. Getting the picture?
Alright now, let us let the store make a nickel off that gallon. Sounds like a fair profit to me doesn’t it . Now let’s look at this store overhead. 40% right off the top to the government. Employee taxes seven half percent social security, workers comp. Insurance the list goes on. Do you see how much more they are going to have to charge them what they got it for just to make their nickel. Hey then when you buy the damn thing you pay about five to 10% sales tax on top of that, imagine that.
Let’s calculate what the government makes off of a house during its lifetime. Let’s assume that the house will stand for 50 years, how much are the property taxes for that house during its 50 years?(As much as a house cost to begin with?) yepper. Now this does not include any buying or selling of the house in the meantime, which would only bring about more taxes to the total. Now this is not even with a bank involved by all imagine how much worse it could get if I were to include this in the equation.
You really don’t your house do you? You just pay cheap rent for it don’t you. For if you do not pay the government , yearly, then the government will take your house. In an essence, they own it, they have control over it.
How about your land? If you were to take off for Africa or Australia or wherever you decide to come back seven years later one of two things would have happened your taxes would be so outrageous to catch up on them or your land would be gone. Why should you pay on something that you own?
Now let’s flip the coin for a minute, and imagine that you are a renter. Let’s say that you rent is 500 a month for a small unit. Do you think that the landlord is getting rich? Not as rich as you may think. Why? Because of his outrageous taxes, not only does he have to pay the property taxes as you would if you were a homeowner. He also asked to pay huge taxes on his income made from the units, bingo. So in essence half of your rent money basically goes right to the government, imagine that.
Time to go the grocery store, and how much you hate this. Let’s empty your wallet big time now. Let’s go pay some of the property tax for the store, let’s pay on their 40% tax overhead. Let’s pay on the employees taxes if we will. Let’s pay on all of the fuel tax involved in transporting all of the groceries to the store. Let’s pay on the taxes of every property involved from the farmer, to the warehouse, to the factory making food, then let us pay all of their 40% overhead taxes. Now remember, a seed only needs water sunshine and nutrients from the soil to succeed. A cow only needs grass water and land in time to grow, and off to the slaughterhouse we go. Now the farmer has to sell his cow, in doing so he needs to pay for his property taxes. You also have to pay taxes on his income from selling the cow. Well that just tripled what he would have been able to charge for this cow. The same goes for the slaughterhouse. The same goes for the trucker, that all the beef. The same goes for the butcher. You as the consumer, had to pay when everybody else had to pay to keep the government happy. Simple.
Time to pay the electric bill. Hey it’s $120 but as you know about $60 of that is going straight to the government. The other 60 will pay wages and the sort for the people at the electric company. Remember that Social Security tax? That’s right you are paying that for them to, as well as your own.
In summary, you can see that the government makes huge profits from beginning to end. In essence you are paying one dollar for something that could be purchased for twenty two cents.
Where does it all go? All of this modern high-speed machinery does nothing to benefit you by being able to buy things cheap. It is the taxes that you have to pay for everybody else that is before you in the chain.
Now the money that people did make from these purchases, is money that will be spent by them, and of course, the items that they purchase have that same repetitive tax effect that you had when you made your purchase. So basically now all of your dollar bill has went back to the government.
Now let’s let the money change hands five more times, which usually does not take very long. Do you see how much more money the government is made?
How much tax should there be? A rough estimate would be around 1 1/2 percent. This does not sound like much, but when you consider that the next guy, will be paying the previous guys 1 1/2 percent tax followed by the previous guys 1 1/2 percent tax and so on and so on. We will have reached a 10% tax after a product going only through seven stages. Many, many products go through dozens of stages. Also when you spend your money with just a 1 1/2 percent tax, and that money will be spent over and over by other people each paying a tax. Your dollar bill really never dies it just goes from one hand to the other.
I have rainwater for five cents a gallon. Is anybody interested?
2 responses so far ↓
1 Sale // Sep 14, 2008 at 9:15 pm
Other student loans may come direct from colleges, private lenders or state governments. Sale
2 Willard // Oct 6, 2008 at 10:07 pm
Can you provide stats?
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