From: dean@vexcel.com (Dean Alaska)
Subject: Re: A Simple Thought Experiment (was Re: Derailing the Reagan Revolution)
Organization: VEXCEL Corporation, Boulder, CO
Date: Thu, 27 Aug 1992 19:42:50 GMT

In article <1992Aug27.021557.11240@ke4zv.uucp> gary@ke4zv.UUCP (Gary Coffman) writes:
>In article <1992Aug26.035138.1468@vexcel.com> dean@vexcel.com (Dean Myerson) writes:
>>In article <1992Aug25.210555.3635@ke4zv.uucp> gary@ke4zv.UUCP (Gary Coffman) writes:
>>>In article <1992Aug21.165333.23470@vexcel.com> dean@vexcel.com (dean alaska) writes:
>>>>
>>>I challenge this assertion that the US is the lowest taxed developed
>>>nation. Unlike centralized governments in other countries, the US tax
>>>burden is distributed among local, state and federal levels. Many different
>>>kinds of taxes are involved, from personal and corporate income taxes, SS 
>>>taxes, sales taxes, excise taxes, property taxes (real and intangible), etc, 
>>>etc, etc. When all these are summed, I don't think the US will be the lowest 
>>>taxed industrial nation. According to the Taxpayer's Union, over 3/4 of
>>>all income winds up as taxes.
>>>
>>>Gary
>>
>>If 3/4 of your income is paid in taxes, you need a new accountant.  Income
>>taxes are higher in Europe.  Value added taxes more than make up for
>>sales taxes.  The big unknown to me is what comparison they have to
>>property taxes?  Anyone else know?
>
>Well, let's see if I can get close to the Taxpayer's Union number.
>
>Federal Income Tax		33.0%

Fed taxes start at 15% and go up to 28% and then 33%.  Therefore, the rate
can't be 33%.  Only the top part of _your_ income.  My effective US
tax rate would be about 23% when the total is figured.

>Social Security Tax		 7.5%
>Ga Income Tax			 6.0%
>Ga Sales Tax			 5.0%

How much of your income goes to items subject to sales taxes?  A 5% sales
tax rate does not indicate 5% of your income is paid here.  Since most
income usually goes to housing, the figure is likely less than 1% for
most people, more for the poorest of people if food is taxed.

>County Sales Tax		 1.0%

ditto.

>Subtotal percentage taxes	52.5%
>
>Fortunately I don't live inside city limits or I'd have another 1%
>sales tax to add on. Now let's look at other taxes.
>
>Ad Valorum Tax (real and intangible)	0.8% of assessed value
>
>This is a bigger tax than it looks like because it's on the assessed
>value of all real and intangible property. Converted to percentage of
>income, it's about 10%.

I am not familiar with the term "Ad Valorum" but it sounds like county
property taxes.  Mine are about 2.5% of income.  If your income is high
enough to get taxed at 33% (over 100k?), then you must own an incredible
amount of property if this is 10% of income.  And assuming there is a
mortgage on all of this property, your fed taxes would come down some.

>
>User taxes. This is a miscillaneous category that includes things like
>excise taxes, motor fuel tax, Price-Robertson tax, hotel-motel tax, 
>liquor tax, tobacco tax, occupation tax, business license fees, etc. 
>It's hard to put an exact figure to this, but it's likely around 15%.

I have no idea what your lifestyle is, but these are negligable for
me. Not more than a few hundred a year.  And the degree to which 
they are voluntary (user fees), they don't count.  < 1% for me.
	auto			$75
	gas tax 		7000 mi/yr (what does that come to?)
	Price-Robertson		what is this?
	hotel-motel		I prefer to camp
	liquor			<< $100/yr
	tobacco			zilch
	occupation tax		?
	business tax		not self employed

Hard to see where 15% comes from these.
>
>Adding this up we get about 77.5% of income goes to taxes. That's close
>to the Taxpayer's Union number of 75%.
>
>Gary

Comes to about 40% for me.

-- 

		dingo in boulder	(dean@vexcel.com)
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