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RE: OT : taxes

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Glad someone made this point.  And to further it, most that "harp" about
smaller government conviently forget that the federal government (not even
throwing state or local government into the mix) is by far the single
biggest employer in the country and the single biggest consumer of goods
and services in the country.  Those the argue for smaller government at
the expense of everything seems to forget that when you cut the amount of
government, you end up putting people, both in the public sector (i.e.
actual government employees) and private sector (i.e. people working for
private companies that lose jobs due to the government cutting back on
services or goods that they produce), on the unemployment line.  As a case
in point, the supporters of Bush tend to point out that the current number
of jobs lost is as not too bad since there has actually been an INCREASE
in government related jobs (i.e. I believe that Kerry's "spin" on job
stats is that he tends to use the number of lost private sector jobs to
make Bush's "record" seem worse)...this is kind of ironic since most of
the "smaller government" folks tend to support Bush.  In all, this gets
back to the discussion of the "fixed" amount of money in the system...it
just gets redistributed.  It mainly becomes an arguement of who is best
able to "expand" the market by added value (as Christopher Wright talked
about)...the private business sector or the government.  And both sides
have points.

Regards,

Scott
Adrian, MI


On Mon, 1 Nov 2004, Jordan Truesdell, PE wrote:

> 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>
>
> Jordan
>
> At 02:45 PM 10/31/2004 -0800, you wrote:
> >Jake,
> >...
> >
> >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
> >
> >dennis.wish(--nospam--at)verizon.net
> >
> >http://www.structuralist.net
> >
> >
> >
> >"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
> >FactCheck.Org; http://www.factcheck.org
> >
> >
>
>
>
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