tax sick

Discussion in 'Economics' started by morganist, Nov 18, 2009.

  1. do you think it will ever get to the point where people stop working because they are being taxed too much. or that they will revert to illegal activities.

    do you think the government creates poverty rather than reducing it through over taxing people.
  2. Absolutely my friend, government only takes while giving nothing in return. People now serve their governments, that is slavery and immoral.
  3. Certainly.

    140 years ago in the US, the idea of an "income tax" was initiated... I believe it was related to our Civil War costs.. and it started at 3%.

    How bad is it today? With Peolsi's proposed top Federal income tax rate of 45% + the proposed 5% vat....

    If I started a little personal service business today which produced $100,000 in after tax profits, here's what my tax situation might look like....

    1. Federal Income tax................. 45%
    2. Social Security and Medicare.... 15.3%
    3. State Income tax.................... 4.65%
    4. Property tax............................ 6.6%
    5. Sales Tax if all spent on taxable. 8.2%
    6. Pelosi's VAT............................. 5%

    While it's not as simple as adding up those taxes (Federal tax is deductible against State taxable income, State income tax is deductible against Federal... but then there's the AMT, which recovers part/all deductions as income increases)... a decent rough estimate of "Total Taxes" from my $100K = ~ $76,000.

    And out of my $24,000 left over, I could soon have a MANDATORY payment into a health care plan ($800-$1,000/mo?) or PERHAPS FACE PRISION of up to 5 years!

    So, what incentive to I have to start such a business??

    When we get annoyed at politicos or other [supposed] public servants, we often like to say, "I pay your salary. You work for me".

    Wel, the first part of that is true... the second part is wrong... we ALL in the private sector work for the government these days...
  4. Taxation is only getting started. Western Europe and North America will tax the living crap out of people, especially the "rich" (or what they call rich). Anybody with the means and brains is better off leaving to more tax friendly environments.
  5. Jym


    This is the tax rate for just the very top richest people

    If we went back to the 1940s/50s level, taxes would double or triple across the board and not for just the richest.


    and yep it maxed out at 94%
  6. ...........................................

    Hong Kong

    And some others that have no/small taxes on
    securities trading....

    The movement...already happening....

    Would love to see the actual worldwide exchanges centered in
  7. i have never viewed it like that before but i guess when tax is taken at that degree you work for the gov.
  8. Regarding this point. I'd be willing to bet a large % of the home refi began with people taking advantage of mort tax deductions.

    Home equity loans allowed you to pay off credit card debt/auto loans and in the end the interest was deductible, while illegal, no one cared.

    This was one catalyst in the mortgage fiasco. (Resulting in people ending up homeless or some form of poverty, lifestyle change).
  9. Imo, a big issue for the small business and self employed.

    If you can find a suitable r/r regarding illegal activities, I suppose one might try the illegal route. Ie paying workers in cash, hiring illegals, stealing from your own business, etc.

    As for Joe Sixpack, he is conditioned to working overtime or getting raise and having it taxed away. Probably takes his net pittance and buys a lottery ticket.
  10. Also Caribbean, Panama, Monaco, UK (non-domicile setup for foreigners), Cyprus.

    There are dozens of possibilities to shape your (and your families) own tax future. Just many simply like to whine and complain instead of taking matters in their own hands.
    #10     Nov 18, 2009