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The HUGE tax that is cleverly hidden to keep us from realizing how badly we are being screwed
kevinpezzi.com ^ | 10-7-2010 | Kevin Pezzi

Posted on 10/07/2010 7:32:55 AM PDT by freedomfox

Most people grossly underestimate the amount of taxes they pay. For example, if you live in a state with a 6% sales tax, when asked how much they would pay in taxes on a $100 purchase, most people incorrectly answer $6. Hardly!

(Excerpt) Read more at kevinpezzi.com ...


TOPICS: Business/Economy; Government; Politics
KEYWORDS: fairshare; obama; serf; tax
I agree with Dr. Pezzi's statement that "a logical threshold for differentiating whether one is more of a serf, or more free, is at the 50% [combined tax] level."
1 posted on 10/07/2010 7:32:59 AM PDT by freedomfox
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To: freedomfox

It’s not just that, but the sales tax is generally added at every level of the supply chain—from raw materials to wholesaler, distributor to retailer and consumer. Look back farther at the raw materials and there are generally several layers of the tax already in that as well. It’s a VAT on more than just the ‘VA’.


2 posted on 10/07/2010 7:38:41 AM PDT by 9YearLurker
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To: freedomfox
There's a group that tries to come up with the cost of all government. This includes all taxes, fees, school, etc. They have a heck of a time doing this, as no government function really want to cooperate. I've haven't seen any press releases from them for several years - hope they didn't go out of business.

At any rate, the last one I saw went something like this: the cost of government worked out to about 60% of GDP. Since we export so little anymore, most of that government cost came directly from the taxpayer. And since there is only a percentage of us that actually pay taxes - I'd have to say, “welcome to serfdom.”

I have a feeling that most of us we crossed the 50% line a long time ago.

3 posted on 10/07/2010 7:41:07 AM PDT by I cannot think of a name
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To: 9YearLurker

the sales tax is generally added at every level of the supply chain—from raw materials to wholesaler, distributor to retailer and consumer


No it isn’t, at least not in most states. Retailers (and manufacturers get a resale permit, so purchases not for sale to the end consumer are exempt.


4 posted on 10/07/2010 7:43:49 AM PDT by Atlas Sneezed (Congressmen should serve two terms: One in Congress and one in prison.)
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To: freedomfox

Thank idiots who watch TV. TV controls America and the sheep keep watching. Fox is NOT your friend. They are all s**t. Fox’s biggest shareholder Prince Al Waleed is fronting money for the Victory Mosque.

Keep watching TV folks - you are good little serfs.


5 posted on 10/07/2010 7:46:02 AM PDT by Frantzie (Imam Ob*m* & Democrats support the VICTORY MOSQUE & TV supports Imam)
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To: Beelzebubba

It sure is for small service businesses. That is, if services aren’t taxed, there may not be a tax added onto that, but regular supplies and such are fully taxable unless the organization is run as a nonprofit. Take a look at how much the modern consumer is paying out of their total expenditures to such providers.


6 posted on 10/07/2010 7:47:03 AM PDT by 9YearLurker
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To: freedomfox
The combined federal-state statutory corporate tax rate is 39.3%, so you aren't just paying a bit more in taxes than you think, but much more.... To appreciate your total tax burden, add the corporate tax rate to your federal, state, and local income taxes. Then add your Social Security tax and double it, because the matching contribution paid by your employer is ultimately paid by the sweat of your brow.

That's a sloppy argument. The corporate tax only applies to the profits, so you have to multiply the 39.3% by whatever the profit rate is (even before the recession it was below 10%) to get the average additional burden on the taxpayer.

7 posted on 10/07/2010 7:49:21 AM PDT by KarlInOhio (Grblb blabt unt mipt speeb!! Oot piffoo blaboo...)
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To: freedomfox

Welcome to Free Republic, freedomfox, and an EXCELLENT first thread posting. Just excellent.

I’m usually a bit reticent about praising people who post a thread on their sign up day, but...can’t argue about this one. I think it is usually better to get the lay of the land first, but you have either been lurking for a while or have had an account here before (not that there is anything WRONG with that...:)

In any case...thanks for posting it.


8 posted on 10/07/2010 7:51:48 AM PDT by rlmorel ("Freedom has ceased to be a birthright; it has come to mean whatever we are still permitted to do.")
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To: Frantzie

Hey, as long as I have my 80” screen, 60 oz cup of Brawndo (The Thrist Mutilator) and the “Ow, My Balls” channel, I’ll be good to go...:)


9 posted on 10/07/2010 7:54:16 AM PDT by rlmorel ("Freedom has ceased to be a birthright; it has come to mean whatever we are still permitted to do.")
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To: KarlInOhio

“That’s a sloppy argument. “

Agreed. It’s just easier to take your total amount of money you make and calculate the total taxes the fascist governments yank away from that, including on what you spend. Add taxed amounts for sales, income, FICA, SS, property, registration, and anything else considered to be a tax.

For example, my taxed amount annually is 65% of what I make, which is ABSOLUTELY CRIMINAL!!!! Patriots were dumping tea overboard and going to war over 10%, which they thought was too much back then.


10 posted on 10/07/2010 7:55:07 AM PDT by BocoLoco
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To: freedomfox

A good article explaining how we already have a de facto VAT in place.


11 posted on 10/07/2010 7:55:29 AM PDT by Cyber Liberty (I am Derek Fenton! (me) Enjoying freedom ourselves requires tolerating it for others. (Jedidah))
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To: Beelzebubba

Ax the IRS. 9%... 12%... 15%... 22% or whatever on the end product (I ain’t smart enough to figger it out but there IS a number that’ll work). Flat tax... and let that be it... period! If one does not care to pay the tax... don’t spend the bloody money. ALL revenue would be taxed inclusive of dope, sex... you name it... it’s taxed @ the end transaction (pun??... I’ll never tell).

Sit back and watch the coffers fill.


12 posted on 10/07/2010 7:57:07 AM PDT by Bubba (Build roads (make that TOLL roads)... Fight wars and stay out of MY live. FRREEEEEEDOM!)
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To: 9YearLurker

Yes, but what you wrote at first simply isn’t true with respect to “supply chain.” I’m in the service biz too, and I’m the end consumer of toner, paper, and pencils. The sales tax is another business expense, and is offset against my income for income tax purposes.

(I suggest buying more stuff by mail order to avoid sales taxes.)


13 posted on 10/07/2010 8:03:38 AM PDT by Atlas Sneezed (Congressmen should serve two terms: One in Congress and one in prison.)
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To: KarlInOhio
“That's a sloppy argument. The corporate tax only applies to the profits, so you have to multiply the 39.3% by whatever the profit rate is (even before the recession it was below 10%) to get the average additional burden on the taxpayer.”

However, every corporation along the distribution chain - from the manufacturer to you - paid school taxes, hospital taxes, unemployment taxes, city taxes, county taxes, road taxes, licenses, and other fees - and they ALL have to be somewhere in the price you paid.

That's why the TOTAL cost of ALL government as a percentage of GDP is the only way to even guess at what the actual tax rate is.

14 posted on 10/07/2010 8:05:36 AM PDT by I cannot think of a name
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To: freedomfox

Consumers also pay the cost of every corporate tax, in addition to any sales tax applied to purchases.


15 posted on 10/07/2010 8:06:53 AM PDT by pnh102 (Regarding liberalism, always attribute to malice what you think can be explained by stupidity. - Me)
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To: Beelzebubba
the sales tax is generally added at every level of the supply chain—from raw materials to wholesaler, distributor to retailer and consumer ————————————————————————————————————————
No it isn’t, at least not in most states. Retailers (and manufacturers get a resale permit, so purchases not for sale to the end consumer are exempt.

I would add that the mechanism for collecting sales/use tax for out of state purchases has been established in the health care bill. Credit card information will be reported to IRS, this information will be shared with states. You will get a bill listing all your out of state purchases and the use tax due for those out of state purchases.

The rules and regs for this are still being established and it sounds pretty innocuous as stated now. In theory only the totals received by individuals and corps will be reported to IRS but it is such a problem prone process eventually all the detailed information will have to be given to the govt to solve the problems created by the govt. Anyone familiar with the statement "We need this information to calculate you tax liability." For the credit card companies to avoid liability they will have to send you a list of all your payers so that you can correct problems (this is already in the proposals). The detail info now exists in a useful format.

States have been wanting this for years. The law says they MUST report totals but there is nothing stopping reporting the details.

Long discourse but anyone doubt me?

16 posted on 10/07/2010 8:08:17 AM PDT by PeterPrinciple ( Seeking the truth here folks.)
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To: rlmorel
I love that movie:


17 posted on 10/07/2010 8:10:34 AM PDT by libertarian27 (Ingsoc: Department of Life, Department of Liberty, Department of Happiness)
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To: 9YearLurker

So that is why people will buy finished products from abroad to pay this tax fewer times.


18 posted on 10/07/2010 8:13:01 AM PDT by Average Al
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To: Beelzebubba

It is a business expense and even though you don’t pay income tax for it, it raises the cost of doing business—which is generally passed through to your customer.


19 posted on 10/07/2010 8:20:30 AM PDT by 9YearLurker
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To: Bubba

Ax the IRS what? /s


20 posted on 10/07/2010 8:26:25 AM PDT by Vendome (Don't take life so seriously... You'll never live through it.)
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To: I cannot think of a name
I have a feeling that most of us we crossed the 50% line a long time ago.

--------------------------------------------------------------------

tea party politics taxes

Obama will raise taxes and print money. The money the government steals via taxes is less disposable income in the economy. More job losses. Money that gets poured down the rat hole of socialist spending. Tax increases are a disincentive to new job creation. It's the looming tax increases that have employers holding off hiring.

Obama's an empty suit Socialist. It's fun to watch the mainstream media turning on him.

UncleSam-OBAMA-You Pay-1sm

21 posted on 10/07/2010 8:31:10 AM PDT by BobP (The piss-stream media - Never to be watched again in my house)
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To: freedomfox

Bookmark.


22 posted on 10/07/2010 8:41:11 AM PDT by Sergio (If a tree fell on a mime in the forest, would he make a sound?)
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To: Beelzebubba

Also, purchases made online or through catalogs may be exempt from sales tax, so long as the company that is selling the item does not have a retail outlet in the same state that the purchaser is buying from (from what I understand).


23 posted on 10/07/2010 8:43:04 AM PDT by Ellendra (I'll believe it's a crisis when the people who say it's a crisis, ACT like it's a crisis!)
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To: freedomfox

Nice rant blog pimper! You are preaching to the choir here.


24 posted on 10/07/2010 8:50:57 AM PDT by caver (Obama: Home of the Whopper)
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To: I cannot think of a name

I have always thought that some company should have the guts to list the ‘tax content’ of their products like that have to show ‘domestic content’, ‘calorie content’ etc. I would calculate if from total average taxes paid over five years by the company in relation to the average selling price. Would not take into account suppliers taxes...but it would be a start. Heck, just post the tax content of a gallon of gas at the pump would be a great start.


25 posted on 10/07/2010 8:51:25 AM PDT by GWynand
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To: rlmorel

Exactly!!!!!! That movie was so stupid, but I couldn’t stop watching it. The underlying theme is truly the current state of the masses.


26 posted on 10/07/2010 8:52:00 AM PDT by teenyelliott (www.thewaterrock.com)
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To: teenyelliott; rlmorel

I didn’t see it until about a year ago, but the POTUS in that movie uses a teleprompter. I almost fell out of my chair.

” The President struts out, waving a towel over his head.

After a few “Hell yeah”s, he calms the crowd down and begins to read his speech off a Teleprompter.”

http://www.pages.drexel.edu/~ina22/splaylib/Screenplay-Idiocracy.htm

There is also a supporter of the POTUS shown that is wearing a shirt that is just like one of the ridiculous Obama themed shirts that have popped up on urban youts.

I’d love to ask Mike Judge his opinion on Obama’s use of a teleprompter, in light of his movie. Is it still funny? It sure as hell is to me.


27 posted on 10/07/2010 9:00:02 AM PDT by Spike Knotts
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To: GWynand
Great idea with a big problem.

How can any company know the answer? I have a friend that had a company that built filters for really big swimming pools. He bought a variety of raw materials. How could he know how much of the cost of each of those raw materials included city taxes, county taxes, state taxes, school taxes, etc, etc?

That's why politicians love all of these different independent taxing authorities. It makes it virtually IMPOSSIBLE to ever figure out what the TOTAL cost of government. I'd call it their “divide and conquer” strategy.

28 posted on 10/07/2010 9:09:02 AM PDT by I cannot think of a name
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To: freedomfox

Most excellent freedomfox. Welcome to Free Republic (if you are new), the premier conservative forum on the net. You should fit in nicely, if this post is any indication.


29 posted on 10/07/2010 9:27:48 AM PDT by WVNan
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To: Ellendra

That is correct Ellendra.

But I am going to give you all a surprise. Everyone, except a few states, pays Sales tax on SHIPPING AND HANDLING on your purchases from Catalogs and Internet.

If you order from Best Buy, JCPenney, Target, KMart or other retailers as such you do pay sales tax on your purchases, based on your state and localities sales tax rates.


30 posted on 10/07/2010 10:20:26 AM PDT by Eric Roelfsema
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To: freedomfox

If you are the author, I give you a BIG Standing “O”!


31 posted on 10/07/2010 10:59:25 AM PDT by JDoutrider
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To: Frantzie

>> Keep watching TV folks - you are good little serfs.<<

Or well informed on what our enemy is doing and how they are doing it.


32 posted on 10/07/2010 12:06:11 PM PDT by CynicalBear
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To: freedomfox

Excellent post; thank you, and welcome!


33 posted on 10/07/2010 12:25:08 PM PDT by backwoods-engineer (There is no "common good" which minimizes or sacrifices the individual. --Walter Scott Hudson)
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