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The life of a dollar bill and the tax revenue it produces.

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posted on Jul, 21 2010 @ 07:03 PM
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The life of a dollar bill and the
tax revenue it produces.



Lil Johnny gets a $1 allowance
for his hard earned efforts
taking the garbage out for dad
each week.

1 dollar earned

Johnny then goes to his local store
to buy a dollar's worth of gas to
cut his neighbors yard. Johnny pays
4 cents in state gas tax and 6 cents
in federal gas tax.

1 dollar exchanged
10 cents of gov tax revenue

Local Store now pays out that same
dollar to the local newspaper driver
for the daily newspaper which produces
another 8 cents of state sales tax.

1 dollar exchanged
8 cents of gov tax revenue +
10 cents of gov tax revenue from the
last transfer of that same dollar bill
which now totals 18 cents.

Local newspaper nows raises the driver's
salary in the amount of 1 dollar after
20 years of employment. Out of that
1 dollar comes 12 cents of Social Security,
8 cents of SUTA and 6 cents of FUTA,
6 cents of Fed with-holding and 4 cents
of State with-holding which produces
another 36 cents of gov tax revenue.

1 dollar exchanged
36 cents of gov tax revenue +
prior 18 cents from past transfers
equaling 54 cents of gov tax revenue.

Newspaper driver now stops at the same
local store and buys an Ice Cream cone.

1 dollar exchanged
8 cents in state sales tax +
54 cents from prior transfers
now equals 62 cents of gov tax revenue.

Local store now spends that 1 dollar
to have lil Johnny's daddy wash the
front door windows. Out of that 1 dollar
comes 12 cents of Social Security,
8 cents of SUTA and 6 cents of FUTA,
6 cents of Fed with-holding and 4 cents
of State with-holding which produces
another 36 cents of gov tax revenue.

1 dollar exchanged
36 cents of gov tax revenue +
62 cents from prior transfers equals
98 cents of total gov tax revenue.

Now lil Johnny takes the trash out
again this week and makes 1 dollar from dad
meanwhile the Gov has made almost the
same exact amount of money just by
allowing it to change hands 5 times.
Lil beknownst to Johnny is that he
doesn't really have a dollar anymore, he
only has 2 cents. 98 cents went to
the Gov.




posted on Jul, 21 2010 @ 07:22 PM
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reply to post by boondock-saint
 

And in the time frame of the transactions, the 2 cents due to inflation became 1.


I attempted to do an effective tax rate thread awhile back. It seems people do not understand that you get taxed on tax. It is QUITE ingenious of the government.

One thing in this day and age would REALLY open the eyes of the public. If when you buy something, ALL taxes must be listed.

Look at the gas you mentioned. First off, you have the state and federal taxes that are charged before the store even gets it. The store itself pays that when they purchase the fuel. Now, you as a consumer pay a SALES tax on the product and the other taxes, so in essence you are paying sales taxes on taxes. SWEET huh?

Taxes taxes taxes taxes, fees fees fees fees, licenses.......................

THEN we have a frelling government that passes a health care bill and states it is Constitutional but it is not a tax.

SO WHAT HAPPENS?

When arguing the Constitutionality of the bill, they STATE THAT TAXES ARE THE RIGHT OF THE GOVERNMENT TO PASS!


Oh well, I guess we are NOT Taxed Enough Already!



posted on Jul, 21 2010 @ 07:27 PM
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reply to post by endisnighe
 

yep ur right
taxed on the tax
and most don't see it.

And it would be so kewl to look
at a dollar bill and see just how many
tax dollars that 1 dollar has earned
the government thus far.

It would be like a chain e-mail.
OK add my name to the bottom of the list
and pass it on, lol.

It's pathetic to say the least.
We have got to get out of this
monetary system of Fed Res Notes
and the cartel banking system.
It's just legal robbery of the people.



posted on Jul, 21 2010 @ 08:05 PM
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I appreciate that you are trying to illustrate that we are well taxed by our governing entities.
However, your math seems a bit off. If the boy pays the buck to gas station, the gas station pays the corresponding tax and then has LESS than a dollar to pay for the paper, paper guy has even less, etc etc. (unless I am missing something here)
Hate to be a stickler, I am against all of the taxing primarily due to how the money is spent.



posted on Jul, 21 2010 @ 08:10 PM
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Move to Oregon, no sales tax.



posted on Jul, 21 2010 @ 08:35 PM
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Yea, I'm with 5MaveN5. I see where you are trying to go with this. You want to show how many different ways the Government sticks it's sticky fingers in near all our transactions. The problem here was your math. Not that you subtracted wrong, but that you kept adding the "same" dollar back in at the beginning of another transaction. Then added up all the tax coming out and took it away from the first dollar.

One thing I would like to point out is all the economic activity, and circulating revenues in your scenario. All that changing hands is good.

Edit to get my ramble right

[edit on 21-7-2010 by 12GaugePermissionSlip]



posted on Jul, 22 2010 @ 01:24 AM
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reply to post by endisnighe
 


This is going to come as a suprise to you, but I'm going to have to disagree.

First, gas tax is considered an excise tax, not a sales tax. There are states that tack on a sales tax however, I'd suggest you do your own research to figure out if your state is one of those states.

Second, I'm going to have to ask the guy at the counter the next time I fill up on whether or not they pay taxes when it comes from the supplier. I would assume they would, but this sounds like it'd be a VAT tax type system...which, last I checked, we don't have here. Unless it's specifically for fuel.

Third, I already discussed the idea of adding percentages versus adding actual value in your other thread. I'm still not buying into the idea that I'm taxed 50-75 percent of my income.

Finally, weren't you supposed to leave?



posted on Jul, 22 2010 @ 06:23 AM
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reply to post by boondock-saint
 

i dont want to be the party pooper to your thread, but your maths just doesnt work out.
when i read your thread, i get the impression, i repeat the impression, that if i would earn one dollar and it gets taxed, i will have left 2 cents in my pocket.
with this maths, if i earn 100 dollars a day, i actually have 2 dollars in my pocket at the end of the day. the truth is if i earn 100 dollars, i can buy products for it, good products, quality products, e.g. a furniture, like a small cupboard. its a lot of material and workforce i do buy, but that isnt possible with 2 dollars.
again, when i read your thread i get the impression: "this evil government is taxing us to death". if this was your intension, you do exaggerate in an amount comparable to a lie.



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