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Taxation, some basic math


And progressive tax rates.

“But those rich people make more, they should pay more”. Fucking DUH, they would with a flat tax rate. 10% is good enough for God, it should be good enough for government? Well, yes actually. Let us call it 15% to cover the military and so on. Let’s keep that bottom cut-off of $25,000. Below that, you pay nothing. Since you paid in nothing, you get no return. Anything above that, you pay 15%. Period.

The 1040 turns into a postcard. $26,000-$25,000=$1,000×15%=$150. $50,000-$25,000=$25,000×15%=$3,750. $26,000,000-$25,000=$25,975,000×15%=$3,896,250. Boom. Them evil rich people still pay more than the secretary at the office. And it’s still worthwhile to build the business, that makes the money, which inspires the creators to bother to hire people, to build the business, to make the money.

If I know I can make the profits, and I know that I can keep my money to reinvest so I can make even more, I’ll do it. But there comes a point where I know if I make even more I’ll actually be seeing less. Why bother making more than that point, why bother making the business bigger, hiring more people to work it, etc, if I know beyond X is not worth the effort?

Why are big money people putting that money in Switzerland or the Caymans? To hide it from the fed. Why are people putting their businesses in China or Mexico? Lower taxes than America. Lower the taxes to where it becomes more attractive to keep it here, or other investors from other countries to come here. Sam Walton knew lower prices mean more sales. Perhaps you don’t have as much profit per sale, but if you only sell one at a $10 profit versus three at a $5 profit, you now have lost $5. Word spreads, you at the higher individual cost go out of business, and the cheaper place sells more.

How hard is that for these “ridiculously intelligent” people in DC to understand?

  1. 11/23/2012 10:20

    Math? Economics were my worst subject in school. HOWEVER! It doesn’t take a genius to figure out that spending CANNOT exceed what you have in the bank! That is to put it in simple terms.
    This has been deliberate on his part to BREAK THE USA.

  2. coffeeandsleeplessnights permalink
    11/23/2012 10:40

    Reblogged this on A Lot Of Coffee and Sleepless Nights.

  3. 11/23/2012 11:16

    Oh. Yeah. But we knew that.

  4. 11/23/2012 11:42

    I did sound like a simpleton but I get frustrated that they “don’t care! in D.C. That was supposed to be the reason we had representatives in the first damn place!
    I’ve run out of words for my own disgust of the situation.

  5. John C permalink
    11/23/2012 11:51

    Either that flat tax or just do a 10% national sales tax and kill the income tax permanently. And this is coming from someone who HATES sales tax. However if the fed income tax was gone, I would be for it. Food (not restaurant), medical, housing and vehicles exempted. That way, everyone pays into it.

  6. John C permalink
    11/23/2012 11:53

    Heh, realized that last bit didn’t sound right. Those things excepted for obvious reasons, they are the absolute necessities. Everything else gets taxed. And that way everyone pays into it.

  7. 11/23/2012 11:58

    I am so there, John. Either works, flat tax or fair tax. The progressive income tax sucks badly.

  8. 11/23/2012 12:00

    Yes it was, upaces. But the disease that is the central government is infectious. Human greed shows to its utmost when placed in the candy bowl itself.

  9. 11/24/2012 06:56

    The “intelligentsia” wants to conflate and confuse marginal and effective tax rates, tax rate and revenues and obfuscate the actual increase in progressiveness of lower tax rates. They depend on the financial and functional ignorance of the government educated drones that are produced by the government PC infected school systems and the mendacity of the state pet media.

    They demagogue these fools with the economic nonsense of “income inequality” as if it has any intellectual merit. It is envy pure and simple. It is the premise they use to steal from one citizen in order to buy the allegiance of another citizen. This is prima facie immoral as one is the thief and fence and the other is in receipt of stolen goods. This is the government acting as slave master of the productive to fund their corruption of the political masses in order for the deceitful to gain and retain power. Any of these rich bitch phonies who think they are going to be able to keep their fortunes because of past fealty to the cause are historically illiterate. First rule of any revolution of the totalitarian bent. Eliminate those who helped you seize power. As for the bought their misery will only gets worse as those who know how to create wealth are eliminated and the knowledge and history are forbidden by the socialist dogma of the church of the secular humanist(keep in mind Marx thought socialism more religion than political/economic theory as most of what he said had to be taken on faith)

    But back to tax rates. People make decisions based on the next dollar(marginal rate) not the average(effective rate) of all dollars. This is the real financial and economic concept of diminishing returns. This is when the return is not worth the effort. As in all things in the consensual society this point is different for all people and is not a purely mathematical decision. Qualitative factors start to become a bigger part of the decision making as the return on your effort is eroded by the grasping and the greedy. But all things being equal you are less likely to pursue the next dollar if it is not as valuable to you as the last dollar. The idea that all humans will grasp at every dollar(maximizing profit) they can get their hands on is a leftist shibboleth that really is more prevalent in these “benevolent champions of the common man” as they fund their egos and moral vanity through dishonesty, demagoguery and coercion.

    To the left the common man is pawn in their game to wrest power from those they perceive as evil according to the leftist catechism. This is a catechism that is openly bigoted and disdainful of any number of what we would call middle class values. It rests on the presumption that all men are equal in a material, physical and intellectual way(what I would call mathematical equality i.e. indentical) and that all choices are equally valid even though empirically they are not as evidenced by the fact that results of some choices are confiscated to fund objectively poor choices.

    The fact is they don’t even believe this as their actions in order to create an equality of results is based on the presumption that some can’t compete and then rationalize this on some self servingly constructed idea that those who oppose their “altruism” are acting in bad faith. All their opponents are doing is practicing what THEY preach. All men have a right to succeed or fail on their own merits. The big government rubric preferred by liberal dogma discourages this since it is set up to prevent “income inequality”. If you succeed outside the liberal framework(governmental cronyism or as Rand put it the “politics of pull”) you by definition must have cheated as they have stacked the deck against you.

    Men by virtue of being men are imbued with certain rights and are equal in those rights. The natural variability in the human condition will create a multiplicity of results as those rights are observed and no manner of “progressive taxation” or government favoritism can erase this basic fact.

    The progressive tax system, besides being unconstitutional under the 14th amendment, is a deterrent to both freedom and economic prosperity as it usurps for the government the power to pick winners and loser based not on the talents of men but the whimsy of bureaucrats and unconstitutionally redistributes funds to consolidate the power of an illegally entrenched governmental apparatus. They claim power they have no authority to claim and the claim the authority to fund such usurpation’s using the bough and paid for pawns to give a democratic patina to the whole thing ans use it to justifying their abuse of the rest of us.

    Dictatorship by plebiscite is still dictatorship.

  10. 11/24/2012 07:34

    Well said. Such equality as was recognized by the Founders was that of opportunity, and such results as were to be achieved were to be based on intelligence and talent. This nation was not based on the concept of equal shares regardless of ability. It is a proven fact innumerable times over that the producers eventually get tired of no reward.

  11. 11/24/2012 13:25

    The only thing progressive about a progressive income tax is how it gets worse.

    Progressive…another good word stolen by the statists…

  12. 11/24/2012 16:46

    1984 doublespeak. Progressive is regressive.

  13. 11/25/2012 08:06

    As it turns out the big lie being promoted on the left is that the IRC is not progressive enough. This is of course disproved by the government itself as their statistics show that the the lower the tax rates at all levels more of the burden is distributed to the upper margin taxpayer as lower income citizens drop off the tax rolls. This gives the illusion of a free lunch and eventually creates the problem of those who benefit from high taxes agitating for even higher taxes to support their government supplied lifestyle.

    This creates and and economic subservience of the tax payer to the tax recipients. It isn’t just “regressive” it is subjugation and enslavement as if someone can demand more from my pocket for their own benefit, in connivance with the powers that be, that makes me their defacto slave.

    It can be no other way.

  14. 11/25/2012 08:21


  15. 11/25/2012 09:42

    You know that. I know that. The co-conspirators and stooges who work for President It know that. But the ignorati that helped elect Obama don’t. He depends on ignorance and deceit for his political power and there are way too many people who approve, benefit or cynically don’t care cause they want their bite at the apple when the time comes(that would be the POS, BTW)

    Things will continue until they can’t.

  16. 11/25/2012 09:43

    And then they won’t, and then the shit will hit the fan.

  17. 11/25/2012 09:48

    Some more election fraud news via his Majesty at the Rott:

    You don’t have to be retarded to vote for the NDSWP but it sure helps

  18. 11/25/2012 09:50

    From the article

    Such an orchestrated, systematized process to corrupt the voting process begs the question: are there any Democrats left who possess virtue and integrity?

    That would be self evident. No.

  19. 11/25/2012 10:05


  20. 11/25/2012 11:04

    More evidence that the ‘liberal” assertion that people do not respond to marginal tax rates is arrant nonsense

    How is people who think they are so damned smart turn out to be the biggest dopes?

  21. 11/25/2012 14:00

    I remember my father telling me a story about one of his room mates back before WWII before he met my mother.This dude could explain the most incredible of concepts beyond the time they lived in. And he could draw it out on a piece of paper, if he could remember which end of the pencil went forward.

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