Do taxes equal the new slavery?
I am posting this on the fly. I don’t know how my math is going to turn out. You probably don’t believe me, but oh well.
I am not talking about the old American slave period up until the Civil War. I’m talking from a purely mathematical perspective.
If our tax rate was 100%, which means all of the money we make goes straight to the government, that would mean we would be working for nothing. Of course, like many others, if I worked and got no net wages from my work, I’d quit my job. So in that situation, the government would have to use deadly force and intimidation to get us to work. Hence, slavery.
I fall into the trap of just paying attention to income taxes when talking about taxes in general. It’s the type of tax I have most firsthand experience with; I worked at the H&R Block in Wooster, Ohio, for 4 years during peak season.
It’s not just income taxes. It’s also sales taxes, gasoline taxes, FICA (Social Security and Medicare), and hidden taxes that are passed along to the consumer after going through the supply chain.
So let’s just say I make $40,000 per year. That is not my actual salary, but let’s just say that it is. On income taxes alone, based on filing single for tax year 2009, taxes will total $6,188. That leaves me with $33,812.
I commute long distance to work. My car gets 35 miles to the gallon, and I drive 70 miles to work one way. I’ll assume I drive about 4,400 miles per month; and federal and state gas taxes amount to 46¢ per gallon in Ohio. That comes out to $694 total for gasoline taxes for the year. That leaves me with $33,118.
I buy approximately $75 worth of groceries per week. That would make $3,900 per year. My county’s sales tax rate is 6.75%. Therefore, another $264 went toward my county, which leaves me with $32,854.
Let’s not forget Medicare and Social Security! How can I forget my longtime friend whom I never see unless I get my paycheck, and then he’s there to hold out his hand and take 7.65%. Seeing any return on that is highly unlikely given government’s lovely track record when it comes to promising entitlement programs. That 7.65% affects the entire $40,000; so let’s say goodbye to another $3,060 that I’ll never see again. That will leave me with $29,794.
Ohio has a state income tax system. Their tax tables put a $40,000 per year worker at $1,408 due in state taxes. Yikes, that puts me down further to $28,386.
I work in Akron, and they have a city tax rate of 2.25%. There goes another $900 toward a city I don’t even live or vote in. Hey wait, isn’t that taxation without representation? I’m left with $27,486.
My real estate taxes amount to around $1,200 per year. The money goes toward my township, whose government I have no qualms with whatsoever, but it also goes toward our local school district that I’ll more than likely never send my child to. That leaves me with $26,286.
Let’s not forget the hidden taxes that get passed along the supply chain! You do know that every time a product is made and sold along the line, taxes get paid and added in along the way. The tax is included in the price of the final product. For example, the wheat farmer is taxed on his property, the wheat purchaser pays sales tax on the wheat, the mill sells the wheat to a manufacturer who pays tax on the wheat, who then turns around and sells bread to the grocery store, who also pay the tax. A smart business never eats their tax, they just simply pass it along to the next buyer.
An estimate of the total embedded hidden taxes we pay as consumers is about 23%, or 23 cents for every dollar. I’m not sure how accurate this estimate is, but it seems to hold up over time so far. Source: The FairTax Book by Neal Boortz and Congressman John Linder. The 23% is an inclusive number, I won’t get into the difference between inclusive and exclusive tax rates; you can look that up. Using the $3,900 per year of groceries at a 23% inclusive rate, that puts the hidden taxes at $897. That leaves me with $25,389.
I think I covered as much as I could in one sitting. I did not cover other goods and services besides groceries, and I did not cover government administered tolls on freeways. I also did not cover drivers license renewal fees. We could estimate that those costs would put me down to approximately an even $25,000. That means $15,000 went to taxes. The true tax rate overall is $15,000/$40,000 = 37.5%. If I made $40,000 per year, I got to keep 62.5% of that money (or 5/8 if you like fractions).
And to think of all the tax clients who made $15,000 per year and walked away with a $5,000 refund every year while paying no taxes.
If 40% of the American population currently pay no income taxes, how close is that to approaching, say, 60%? What if that 60% always voted to take the money away from the other 40% that pay taxes?
That is why it is absolutely essential that an American citizen should lose the right to vote should they receive more tax money than they paid in. Think of it as an admission price for participating in our country’s government. If you need help, that’s fine, but don’t vote yourself more help. That vote should go toward whoever is indirectly giving you that money. If we keep status quo, that’s the end.
Taxes is the most quantitative way of measuring freedom. If a 0% tax rate equals complete freedom from government, and 100% equals absolute enslavement to the government, then I am only 62% free. The government has entitled themselves to over a third of my income.
There goes the argument about the whole “taxes for the rich” idea. Unless you consider $40,000 rich, I guess.
If the federal government raises tax rates directly or indirectly by even 10%, that would put me down to 52% freedom. Almost half. How would you feel to be half owned by the government? Does that also mean that half freedom is also the same as half slavery? Is the glass half full or half empty?
Granted, taxes such as real estate and sales taxes are voluntary to the extent of how much I buy.
But as for the feds, starve them. Absolutely. Starve the feds, and increase our freedom.