In 2012, Americans will work over 6 months to pay for government

**copterdoctor** · 07-14-2012, 01:13 PM

I'll take slavery for $400, Alex!

http://hotair.com/headlines/archives...or-government/

**whatluck** · 07-14-2012, 01:17 PM

Title is misleading. Some animals don't pay taxes.

**calsdad** · 07-14-2012, 02:12 PM

A couple of years ago one of those taxpayer institutes came out and said that the total cost of government was not paid off until some time in August (more than 6 months). They way they calculated it was by including ALL of the taxes that a final consumer pays - which includes ALL of the taxes embedded into any product that you guy.

More recently - like last week - Charles Hugh Smith estimated that middle class tax rate to be 75%:

http://www.oftwominds.com/blogjuly12...-rate7-12.html

If we include all taxes, the real-world tax rate is much higher than the "official" income tax rate.
For those Americans earning between $34,500 and $106,000, the real-world middle class tax burden in high-tax locales is 15% + 25% + 5% + 15% + 15% = 75%. Yes, 75%.

Before you start listing the innumerable caveats and quibbles raised by any discussion of taxes, please hear me out first. Let's start by defining "taxes" as any fee that is mandated by law or legal necessity. In other words, taxes are what is not optional.

If we include all taxes, the real-world tax rate is much higher than the "official" income tax rate. These "other taxes" vary from nation to nation. France, for example, has a "television tax." It is mandatory, and since virtually every household has a TV this operates as a universal tax. The argument that this is "optional" is specious.

In every other advanced democracy, basic universal healthcare is paid by tax revenues. In the U.S., healthcare insurance is "optional" but this too is specious: in the real world, private healthcare insurance is mandatory because the alternative--having zero insurance--places your entire net worth and income at risk of catastrophic loss.

Having no healthcare insurance only makes sense if you have no real assets and a low income. At that point, your care will be provided by the taxpayer-funded Medicaid program, which is the default universal-care program in the U.S.

For this reason I consider the cost of private healthcare insurance in the U.S. the equivalent of a tax. We pay over $12,000 annually for barebones healthcare insurance, which amounts to about 15% of our gross income. Some countries pay for healthcare with a 15% tax, here we pay the 15% directly. There is no difference except the process of collecting the 15%. (The only real difference is that healthcare costs twice as much per person in the U.S. because the system is operated by cartels whose business model is fraud, opaque pricing and the elimination of competition via Central State regulation.)

**center442** · 07-14-2012, 03:52 PM

If that six month figure is correct, I'm disappointed in the government. There's another 50% of the year that they're missing.

I hope these slackers get on the ball,
They really need to take it all.
Taxes, fees, and penalties,
A new definition of liberty.
Just tell yourself that you're still free,
But don't forget to pay the fee.

**el duderino** · 07-14-2012, 04:05 PM

Originally Posted by center442

If that six month figure is correct, I'm disappointed in the government. There's another 50% of the year that they're missing.

I hope these slackers get on the ball,
They really need to take it all.
Taxes, fees, and penalties,
A new definition of liberty.
Just tell yourself that you're still free,
But don't forget to pay the fee.

I didn't read it but does it take into account only about 50% of people pay taxes, if not then we need to work 12 months to pay for govt...

**center442** · 07-14-2012, 05:02 PM

Originally Posted by el duderino

I didn't read it but does it take into account only about 50% of people pay taxes, if not then we need to work 12 months to pay for govt...

The report is based on how many days the average worker had to put in to pay for government. Basically, you're correct that most of the tax load is being carried by about half the workers. If the tax load was spread out evenly the "tax freedom" day would probably occur sometime in March/April of the year instead of July.

I haven't finished reading the full report; the original link was to a blurb referencing the report. Here's a link to the original full report. Scroll down to page six, which shows the "Cost of Government Day" for each state. My state made the top ten, coming in at #9.

There's another interesting graphic on page 4. Take note of the jump from 2008 to the present.

When Obama claims that he's lowered taxes for the average middle class family, he's technically correct, IF you only look at the data from 2010 to the present. If you go back to 2008 when he was elected, or 2009 when he took office, it's pretty dismal.

**Maxpower** · 07-14-2012, 05:05 PM

Originally Posted by center442

The report is based on how many days the average worker had to put in to pay for government. Basically, you're correct that most of the tax load is being carried by about half the workers. If the tax load was spread out evenly the "tax freedom" day would probably occur sometime in March/April of the year instead of July.

It did occur in April, unless your definition of "tax freedom" day is different than the typical one.

**center442** · 07-14-2012, 05:17 PM

Max, I was referring to what the report calls the "Cost of Government Day," the date after which the average worker has earned enough to pay his/her share of the tax load and actually starts working for himself and not the government. I call it "tax freedom day" because (if the report is correct) anything you earn up to that point goes to pay the cost of government.

If you're referring to April 15th I think of that as the "billing date" for the Feds.

**Maxpower** · 07-15-2012, 06:07 AM

Originally Posted by center442

Max, I was referring to what the report calls the "Cost of Government Day," the date after which the average worker has earned enough to pay his/her share of the tax load and actually starts working for himself and not the government. I call it "tax freedom day" because (if the report is correct) anything you earn up to that point goes to pay the cost of government.

If you're referring to April 15th I think of that as the "billing date" for the Feds.

I wasn't referring to April 15th. I was referring to Tax Freedom Day.

http://taxfoundation.org/article/tax...day-state-2012

**calsdad** · 07-15-2012, 07:21 AM

We need all of this - otherwise we wouldn't have any roads.

In 2012, Americans will work over 6 months to pay for government

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