On Thu, 16 Nov 2006 20:49:35 -0500, "LWG"
wrote:

I heard an interesting argument a few years ago that the primary purpose of
the tax laws in America is to redistribute wealth, which is of course
obvious. But the second is much more subtle: To keep people from ever
figuring out how much they pay. I have this discussion with my kids. I ask
them to tell me how much they are paying in taxes, and we look at things
like receipts and cell phone bills. Then I tell them about property taxes,
income taxes, excise taxes and the like. If the people ever really figured
out what they paid to the government, there would be another revolution.

Its worse than you think.

It's too easy to get hung up on who writes the check to the government
and miss where the burden really falls. Keep in mind that the real
burden is on the person who has to trade more of his life and labor
for what he needs.

By far the largest tax burden any of us bears is the tax component
hidden in the price of goods and services. No business, or individual,
has a money tree from which to pluck his tax dollars. Every dime
income tax on businesses or individuals is passed on down the chain of
production to add to the price of whatever is being sold. That is our
true tax burden, the loss of purchasing power when we buy what we
need. On average, that is 22.4% for Federal. Add in State and local
and the real tax burden, hidden in the price of goods and services, is
between 40% and 48%. And it is 100% regressive, applied to the first
dollar of income, no exemptions, no deductions.

And yeah, if people had the economic savvy to see that, there would be
another revolution.

Don



Virginia - the only State with a flag rated
"R" for partial nudity and graphic violence.