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Old 09-08-2006, 03:45 PM   #50 (permalink)
flstf
Easy Rider
 
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Location: Moscow on the Ohio
I think the government is too big and taxes are too high. I also think that many middle class voters think that Democrats will tax them more than Republicans.

In regards to the side discussion on taxes.
I don't think we can just evaluate income taxes since income tax cuts are only given directly to people who pay income taxes. Tax cuts in general probably benefit all of us indirectly.

I believe that the poor and middle class pay a higher percentage of their income in taxes than the wealthy because of the embedded taxes included in everything we buy. I have seen estimates that anywhere from 40% to 90% of the amount of most goods and services is included in the final price we pay because of these hidden embedded taxes. Since the poor and middle class spend most of their income on goods and services then that is their real tax rate.

Quote:
A LOAF OF BREAD
---snip---
Are the taxes on a loaf of bread 95%? Are the taxes on everything we consume, 95%? Think of the huge taxes on the oil refineries, pipe lines, and even taxes levied for removing the oil from the ground. Think of the wages taxed on the oil chain from well to pump. Think of the chain on electricity from the coal mine, which is taxed, to the railroads that carried the coal, the manufacturer of generators, distribution equipment, high tension lines, transformers, breakers, etc. All labor and property taxes go into the cost of electricity. Is electricity taxed by 95%? Is gasoline taxed by 95%? Probably, because at the pump there are usually close to fifty cents direct taxes, not counting the property taxes and wage taxes paid to the entire chain.
---snip---
http://www.gold-eagle.com/gold_diges...ott022203.html
I think this guy's estimate is too high, but there is no doubt that hidden embedded taxes are a large percentage of the cost of goods and services.
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