Posted tagged ‘taxes’

What 1946 Can Tell Us About 2010

April 6, 2010

Here is some very interesting statistics about the end of WWII and a comparison with our current economy and political enviroment. Click onto the article from The American, A Magazine of Ideas

What 1946 Can Tell Us About 2010 — The American, A Magazine of Ideas.

Advertisements

The Green Con Job, Or Politicians Always Show Poor Judgement

January 26, 2010

I had not been exposed to the “American” magazine much before, but it certainly has my attention now. This blog is called “Education Comments” and it is meant to comment on education and it is now slightly changed to include comments about the education you are getting from the news medium, from your college attendance, and other parts of the public education system,

More on point, a couple of years ago we traveled North to a high school reunion. One of the things we noticed was the price and makeup of regular gas. In FL all the regular gas is 10% corn squeezins and the rest is lead free gas. We get about 26 to 29 MPG from our 2004 Toyota Camry. Somewhere along the way up North the corn squeezins were no longer added to the gas and the funniest thing happened. Our MPG started to increase to at least 30 or a little more and  the car ran better. On our way back to Florida it of course started to decrease. The moral of the story is that some idiot politician or pressure group again sold the politicians a bill of goods to FL and some Southern states on the idea that you should put corn squeezins in your car rather than you mouth and save the world.

Back in the late 70’s or early 80’s when we had the bright idea to have two kinds of gas pumps, regular leaded gas with larger pump nozzles and unleaded gas with smaller pump nozzles so if you had a newer vehicle that ran on unleaded gas (not better but it did run) then you couldn’t put leaded gas in the car due to the size of the whole. If you tried the leaded gas would splash out over your pants or skirt and shoes. I have heard that a person could (I don’t know from personal experience), but have heard that you could run a new car on leaded gas if you took a long handled screw driver as big around as the leaded pump nozzle with the help of a hammer you could enlarge the filler hole to handle the leaded pump nozzle. I fail to see why anyone would defy a government edict that was passed to cost the average person more money without saving money anywhere else. I guess it worked cause the World is still here.

During this time frame, some of the Farm Bureau stores started to sell a product called gasohol. Made up of corn squeezins and some kind of gasoline. When this product was put into your car it ran very well.

See the article below for the latest in a long line of con’s foisted upon the American public.

The Green Con Job — The American, A Magazine of Ideas.

Do We need to Save Capitalism

December 7, 2009

What caused the current recession we are now experiencing? Reading the following article you may decide it really isn’t capitalism. This article most likely has the real reason for the failures we are experiencing. If we have other problems, like health care, perhaps we should look for the same kinds of causes.

Capitalism without Romance — The American, A Magazine of Ideas.

Thought’s on Capitalism and an Opposing System

October 11, 2009

There is much confusion about capitalism, what it is, and how it works. Dr. Walter Williams, economic professor at George Mason University has a good article to answer these questions. It is a misunderstood economic system that has never been completely tried in the U. S., like other systems tried or in current use in the U. S. we currently have some capitalism, socialism, and a mix of other systems. We might be more clearly defined as a free enterprise system.

The current debate about reforming health care is an exercise by a group of elites setting the priorities for the populace, things they continue doing, apparently because the populace isn’ smart enough to decide what is good for us. Another one of my favorites, uses a childhood story to bring home the point that we are often times better off with what we have than in what our neighbor has that we might think is bigger or better than what we have.

Dr. Sowell uses the childhood story of a dog with a bone in its mouth who crosses a stream walking on a downed tree. Looking down the dog sees a larger dog with a larger bone in the reflection from the stream. He decides that he would like the bigger bone so he drops his bone and jumps in the stream to get the other bone. Of course, the bone he dropped couldn’t be found and so he ended up without a bone.

We may all end up without any bone as well.


.

WHO PAYS MOST OF THE TAXES? YOU DO, BELIEVE IT OR NOT

August 2, 2009

I recently read that 40% of U S income taxes are paid by 4% of the U S citizens and President Obama keeps talking about the top 5% of taxpayers who he is going to make pay for everything for the rest of us.

I am not sure those figures are really correct. Income taxes are paid by many different entities such as corporations, some non-profit organizations, and certain other entities that are not people. There is also some information going around that claims that 95% of the citizenry don’t pay any income taxes or if they do won’t have their taxes raised one dime. See the New York Times article for some serious comments from the left and the right. Perhaps these statements are correct as far as they go.

There are many names for taxes in the United States and the various States and many ways for them to be assessed. You can avoid some of these taxes by not using or consuming the article on which the tax is imposed. By not smoking, drinking alcoholic beverages,  using other products that have excise taxes, etc. you can avoid excise taxes.

One of the greatest proofs of who pays the tax is the sales tax. Sales tax is always paid by the last consumer and there shouldn’t be any question about that.  Buy something that requires sales tax and you prove my point.

Let’s consider a slightly more complicated purchase and how tax might be applied and who ends up paying the tax.

Let’s assume that all the parts of this product are made and sold by companies that make a profit. The other day we bought a lawn chair for $19.96 to use on our patio. This particular chair has plastic feet and drink holders which are formed from an oil by-product. For this small part of the chair we have the tax on the sale of land on which to drill,  tax on companies that explore for oil, tax on the manufacturing company that makes and sells the feet.  The frame is some kind of steel, the frame would incur taxes on the land bought for mining, the mining company that mines iron and any other products from mining to make steel, then there is the company that turns the ore into steel tubing or sheets. There are net seats and net backs sewn into cloth seats and backs so that there is air flow through both areas. Made from the same cloth material is the bag to store the folded chair. I am beginning to get tired of this so I will just state that we still need dye for the cloth, netting, and the storage bag, the thread used to sew the cloth, netting, and bag together, paint for the steel frame, the steel grommets that allows the seat and arms to slide up and down and other miscellaneous parts and supplies.

If the federal corporate tax rate is 50% based on all the profit from all these companies, and the profit is 25% of all the combined selling prices there is a calculated total federal tax on this chair of $19.96 X 25% = $4.99 and a tax rate of 50% = $2.50. The $2.50 does not include sales tax which in this case was $ 1.40.

Assuming that the above rates are somewhat accurate we paid $21.46 including sales tax and federal tax of $2.90 or 13.5% taxes paid by us as a consumer on this one item.

Think about how much “hidden” tax you are paying and how much more would you like to pay?