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RE: OT : taxes

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You missed the part where the government re-spends that money, predominantly in the domestic market. By spending money, the government has made possible further tax-producing transactions, both directly and indirectly. By "borrowing" money, the government may artificially increase the turnover, and hopefully the tax revenue.

<vaguely political> Some believe that this margin spending can allow the reduction in tax _rates_ while increasing absolute tax _revenues_. This is called VooDoo economics (nods to President GHW Bush, and Ben Stein) and has been shown anecdotally not to work by the last professional actor to try it out. </vaguely political>


At 02:45 PM 10/31/2004 -0800, you wrote:

If the government takes 20% of your taxes and you start with %100.
Your left with $80.00; You hire a gardener and pay them $80.00 and the
gardener has to pay the government 20% (assuming the same tax bracket) - the
government earns $16.00 leaving the gardener with $64.00
Now the Gardener pays the housekeeper $64.00 and the housekeeper pays the
government 20% the housekeeper is left with $51.20
She hires a gardener who happens to work for $51.20 and this second gardener
must pay the government 20% leaving $40.96

So far the government has earned $59.04.

How long before the government has taken everything we earn in taxation
where we can not rely upon deducting the interest as a business expense?

The point on this one is that sooner or later the government gets it all!

Dennis S. Wish, PE

California Professional Engineer

Structural Engineering Consultant


"Apathy is Lethal!" Speak out and Vote - but make sure you get the facts
right without the spin from either side; Verify their claims at

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