The Random Comic Strip

The Random Comic Strip

Words to live by...

"How beautiful it is to do nothing, and to rest afterward."

[Spanish Proverb]

Ius luxuriae publice datum est

(The right to looseness has been officially given)

"Everyone carries a part of society on his shoulders," wrote Ludwig von Mises, "no one is relieved of his share of responsibility by others. And no one can find a safe way for himself if society is sweeping towards destruction. Therefore everyone, in his own interest, must thrust himself vigorously into the intellectual battle."

Apparently, the crossword puzzle that disappeared from the blog, came back.

Thursday, June 21, 2012

Taxes suck

I was thinking about income taxes. I don't know why, it isn't tax time. Still, they came to mind. It might have been a comment I read somewhere which said "The problem is that the far upper end quit paying taxes awhile ago."

I took issue with that. First, because it is blatantly untrue. Second, because only the bottom of the economic scale has quit paying income tax; something like 47% no longer pay income tax. It is true that every employed person pays what are called payroll taxes. But so do their employers. They pay one half of the Social Security tax for each of their employees in addition to the full 15% for themselves. We forget that, I think. In addition, they pay taxes to cover unemployment benefits and worker's compensation. That's in addition to any benefits they offer to the employee.

I see a lot of misunderstandings and flat out untruths out there concerning the rich not paying their "fair share." It makes me wonder...

Ever play Monopoly? Fun game. But there are two squares that irk me every time I land on them. One is "Luxury Tax" which takes a flat $75. The other is "Income Tax" and offers the player a choice: $200 or 10% of your total worth. It's misnamed. It's not an income tax, it's a wealth tax. If it was an income tax, it would only take a percentage of your gain since the last time you landed on it.

But let me ask you a question: You have been around the board a few times, you've accumulated a number of properties, collected rents and have been given money by Community Chest and Chance as well as the $200 each time you passed go. You have $3000 in cash and properties. You land on "Income Tax", do you choose 10% or the $200?

Next time you play Monopoly, change the rules. Take away the choice, set some arbitrary levels where the rate goes up from 10% to 15% and 20%. Then see how the game plays out.


generic Brand said...

Yeah they do. I made the mistake of stopping my federal withholding about halfway through 2011, thinking my tax bracket was low enough that I wouldn't owe much. Instead I ended up owing $900 still. My thought is that as a 25-year old male, there is no way I used $1400 in federal assistance or benefits.

Taxes should be lowered... for everybody (and government should be vastly shrunk).

T.C. said...

I agree.

I dish out $1500 per payroll! I can put $1500 to get help I always need.

I love listening to people who are clueless about business talk about taxing them.

As for personal income tax, I bet you a family who earn and work less have more take home pay than someone who earns more and works more. 

Douglas4517 said...

 I once lived (and worked) in California which has a state income tax. I transferred to Florida (which does not) to a job that paid 10% less and took home more... in a state with  a lower cost of living.

T.C. said...

Quebec levies a provincial tax in addition to the Federal. It's the only province in the Confederation that does it. It also happens to be one of the least wealthy. In Canada, we divide the 10 provinces into "haves" (which reside out West) and "have nots" to which Quebec is a member.

We would move but the discussion started too late in our lives.