Let’s say I do a dollar of work. My employer wants to pay me a dollar but he can only pay me $0.65 because the state took a nickel, federal took a dime, unemployment insurance took a penny, medical insurance took a couple pennies and social security did too.
Now I go to spend my $0.65 and the state charges me another couple cents on my purchase. Of course the store owner where I spent my money doesn’t get to keep the whole $0.65 either. They get taxed on the earnings made from the sale.
So $1 of work gives back only a fraction as spendable money. The rest of the money is lost to unknown forces, governmental friction perhaps. How can you avoid this? Consider bartering.
Two chickens for some site design anyone?
It is simple. Buy a trailer to live in and a plot of land somewhere remote. Find some sort of low-end job, maybe computer repair will work for you. Do only as much work to feed yourself, paid under the table if possible. Grow your own food as much as possible. Learn to enjoy life without amenities or any of your current friends, as they cost money to keep up with, and they would just look down on you. Learn to make due with junk yuppies throw out, and buy a bicycle to troll around for that stuff, as well as cans & bottles to recycle. Forget about travel, except around the neighborhood on your bike. Etc, etc.
If that doesn’t sound very good, face it, you are a tax-payer, and there is no escape.
Maybe you could barter with the govmunt. You know, exemption from state taxes if you spend every other Sunday repairing potholes (you supply the tools and asphalt). Lifetime exemption from federal taxes if you serve in the military for a few years (no pay or benefits, you supply uniform, food, housing, equipment, weapons, and ammo).
@thunk – I’m not looking for a lifestyle change. It is possible to run a country without many of the taxes that we have today. This US tax mess is only about a 100 years old.
Okay, let me get this straight. Your upset that you have to pay taxes?
Simple move to any of the following hell holes.
Somalia,
Ethiopia,
Nigeria
Simply put, we live in a complex society that requires a fairly complex government. Roads, Bridges, national defense don’t take care of themselves.
Approximately 25% of GDP is spent by the government. Thus, taxes have to be raised. Unless you’re willing to give up the following don’t complain too much about taxes.
Look at the National Budget, which items are you willing to live without? What portion of these are politically feasible to cut? What percentage of GDP do you think the government should control?
I am not arguing that taxes couldn’t be lower. I personally think that all farm subsidies are stupid. Yet, I am enough of realist to understand that red states have a disproportionate share of senatorial power, and thus pork in the farm bill is just a fact of life. Further, 8 billion for farm support pales in comparison to and 8 trillion dollar economy.
Further, any attempt at “simplifying” the tax code is by definition difficult if not impossible. For the simple reason that our economy is very complex. For example, let’s say we have a 10% flat tax. What constitutes earnings for this tax, wages only? If this were the case steve jobs whose salary at Apple is a dollar would pay virtually no tax. While I, who’s entire earnings are from wages would pay thousands. Is this fair? So are you going to now tax capital gains? Are you going to index this capital gains tax to inflation? Or are you going to force people to pay thousands in taxes when they sell their home, even though the property may not have even kept up with the rate of inflation?
So then you decide, hey I’ll just tax consumption. Great, yet this will tax the poor at the highest rate. So do I give a huge tax break to the poor to remove some of the regressive nature of a consumption tax? Do I tax food? Only Junk food? What constitutes junk food? As you can see, even “simple” tax systems become complex if we are to build any type of fairness into the system. By fairness I am referring to a progressive tax system that tries to tax the wealthy in society at a higher rate than the poor.
Regards
Joe Dokes
joe – your taxes don’t pay for roads, bridges or defense. They go mostly to pay the interest on our deficit.
Sam,
Uh no, yes interest on the national debt has become a larger portion of the budget of the US but it still a pales in comparison to Defense and Social Security. Interest makes up about 8.4% of the 2007 budget, while defense is 19%, Social Security is 20%, Medicare is 18%.
Regards
Joe
The easy answer is “vote Republican”. Clinton and Obamma are both on record saying they will raise taxes by approximately 10%. Their plans call for an increase only on those earning $200k and above. While you and I may not earn that, your employer does. That leaves less money for them to pay you, or hire others. Which translates into less employees, lower salaries, less benefits…shall I go on. And all this to pay those of us who don’t actually work. Ironic isn’t it.