To: Remember_Salamis
They're actually doing the most honest thing. It is honest, selling a 30% sales tax as a 23% sales tax? It is honest, in your example to include the employer's share of payroll tax as part of the employees tax but not part of their income? It is honest to think that someone who grosses $60K per year pays anywhere close to $12K in federal income taxes? I think the 10% figure is even high once you consider all the deductions.
To: Always Right
New home builders that build houses on expensive land will benefit more than homebuilders that build homes on sh*tty land because you don't pay taxes on the land. The actual "House" on an expensive piece of property is a lower percentage of the selling price than one built on cheap land.
In my example, it costs $50,000 to actually build the house, whatever piece of land it is on. One lot costs $200,000, while the other coasts $50,000. Therefore, on the price land, only 20% of the selling price would be taxable, whereas 50% of the selling price would be taxable on the cheaper land. Make sense?
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