Just a quick question. When you break it all down, how much of the average American's pay cheque is getting snatched up by the government in total? In a discussion, I said it was as high as 70% but someone didn't believe me. I admit, the 70% was a bit of a ballpark estimate that I'd heard before.
Am I off and what's the breakdown so I can set the record straight?
Look for a version of Harry Browne's "Why Government Doesn't Work".
He breaks down the taxes thing very well. It was about 48% of national income in 1995.
Along with the effects of State Regulation (at LEAST another 10%).
Then inflation, with, if you include the expansion of M3, is at LEAST 10%.
Considering that was 14 years ago, it's definitely safe to say all of them are higher today (with the possible exception of inflation; that was something I got from Shane recently).
The estimation settled on between me and Shane is about 75% of national income.
According to Americans for Tax Reform, it's 61.34%:
http://www.fiscalaccountability.org/index.php?content=cogd-teas
Quote from: MrBogosity on November 08, 2009, 08:26:54 PM
According to Americans for Tax Reform, it's 61.34%:
http://www.fiscalaccountability.org/index.php?content=cogd-teas
Only 61.34%?
Damn.
Do you know if that includes inflation (e.g. Deficit spending)?
No, it doesn't count inflation or "broken window" effects.
Quote from: MrBogosity on November 08, 2009, 09:09:25 PM
No, it doesn't count inflation or "broken window" effects.
OK. That might explain the decrepency between this figure and the one you and I agreed on.
By the way, can you give an example/explanation of "broken window" effects? ^^;
Government taxes a business. We all know that they have to pass those costs on to the customer. What a lot of people don't realize is that the higher price means that they're producing and selling less--the supply curve gets shifted to the left. Like the suit in the Parable of the Broken Window, the reduction in supply represents a loss to the economy. But no one ever sees it.
Quote from: MrBogosity on November 08, 2009, 10:17:06 PM
Government taxes a business. We all know that they have to pass those costs on to the customer. What a lot of people don't realize is that the higher price means that they're producing and selling less--the supply curve gets shifted to the left. Like the suit in the Parable of the Broken Window, the reduction in supply represents a loss to the economy. But no one ever sees it.
Got it.
I asked because taxes, inflation and (state) regulation all have a broken window effect, so it seemed odd for you to mention it again.
I'll take the example you mentioned as what you meant by it originally.
And people can't understand why I have to supress laughter when they rant about "greedy robber barons."
Seriously? 75%? Enron were philanthropists by comparison.
In stark difference to TJ's "11%".