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I would like discussion on taxes

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OxQQme Donating Member (694 posts) Send PM | Profile | Ignore Tue Feb-01-05 07:41 PM
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I would like discussion on taxes
From what I understand, there is a 'pool' of money that arrives somewhere after being collected by the IRS that is used by the various governmental departments.
This pool is predominatly collected from the labors of individuals and samll businesses in the form of income tax.
Federal employees and elected representatives are paid out of this fund.

Now what I don't understand is that it seems that the people in the 'private' sector are paying into that pool twice. Once for their own 'obligation' and again when the 'public' sector employee pays the tax on their obligation which came out of the common pool to begin with.

Help me out here please. Is this accurate?
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papau Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Feb-01-05 08:07 PM
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1. no - the payroll tax is the other income tax only a little smaller than
Edited on Tue Feb-01-05 08:09 PM by papau
FIT (see IRS.GOV)

There are other taxes that collect fairly large amounts

and with Bush our grandkids pay for todays expenses as he cuts taxes for the rich - leaving us with too little FIT TO PAY TODAY'S BILLS - and forcing us to borrow from the capital markets via bonds - those bonds just being promises to raise taxes on our grandkids. You might say Bush is increasing the birth tax.

As to paying folks who then pay taxes, every dollar spent in the economy is re-spent by the fellow that recieves it. Indeed their are studies in economics that show the worse kind of spending for general economic growth and happiness is the money spent on bombs. You really can not resell a used bomb.

In any case, as that dollar is re-spent it is also retaxed.

various folks will earn an income on it and pay an income tax. Items will be bought and a sales tax will be paid.

Your very simplified example of spending money on a government service, with those that provide that service paying a income tax on the income they get from our spending money on a government service, is true for a government service provided by a person - or a government service provided by a corporation.

So the count of how many times "your dollar" is taxed is cute - but meaningless!
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