[ale] OT fairtax isn't

[Sean Kilpatrick]

On Saturday 17 March 2007 00:11, Greg Freemyer wrote:
| I assume the goal of the fair tax people is consistency. ?Today if you
| earn $100 and uncle sam takes $33 you call it a 33% tax. ?Maybe you
| should call it a 50% tax because for you to take home $67 you have to
| give uncle sam $33.
| 
| Greg

Greg,
It all depends on which way the "Arrow" is pointing. :)

If you earn $60,000 a year and your total net tax bill for State and
Federal (including Social Security) is $20,000 then your net tax rate
is 33%.  The government is _subtracting_ that much from your hard earned
cash.

But if

You purchase a new car for $20,000 and the State of Georgia _adds_ a
7% sales tax on your purchase, the total price is $21,400.  And with your
"given" tax rate of 33%, you would actually have to earn $31,940 to
have enough to purchase that "$20,000" car.

Now that really stings!

Another example of how percentages change depending on which way the
arrow points:

If you make $50,000 and get a 20% raise, your total gross income rises
to $60,000.  But if you were making $60,000 and were forced to take a
20% pay cut, you would be making $48,000. *

Sean

*  Please note the correct use of the subjunctive mood.  I was an English
Major! :) Most universities didn't even offer a Computer Science degree in
the mid-60s. Certainly U.Va. didn't.  As a Freshman I was required to
take "Calculus for non-majors", which was a course in the theory and history
of calculus. Unbelievably more difficult that Calculus 101. I can tell
you that Newton's notation sucked. Big time. We had to be able to produce
for exams the derivations of all the major basic equations. (It's one thing
to learn how to use an electric drill; something else altogether to be able
to produce, from memory a complete exploded diagram of the inner workings of
the same drill.) Aced the course and swore I'd never take another math
course again!





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