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Old 05-16-2019, 07:08 PM   #56 (permalink)
JSH
Master EcoModder
 
Join Date: May 2009
Location: PDX
Posts: 783

City Slicker - '16 Chevy Spark EV
90 day: 150.45 mpg (US)

Adventure Seeker - '04 Chevy Astro - Campervan
90 day: 15.9 mpg (US)

Dieselgate - '14 VW Jetta Sportwagen TDI
90 day: 37.11 mpg (US)
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Quote:
Originally Posted by redpoint5 View Post
Person A makes $15,000
Person A spends 100% of $15,000 in the following way:

$9600 housing - tax free
$2400 staple food - tax free
$2400 healthcare - tax free
$600 discretionary at 20% = $120 tax, or 0.8% of income in taxes

Person B makes $100,000 and spends 80% of it in the following way:

$15,600 housing - 20% tax on 6000 of it - $1200
$2400 staple food - tax free
$2400 eating out/not staple - 20% tax $480
$4800 healthcare - 20% tax on $2,400 - $480
$54,800 discretionary at 20% = $10,960
$13,120 total tax, or 13% of income

As I've said before, investments are eventually cashed out. They will get taxed. This is a progressive structure that scales with spending, which is correlated with income.
Person C makes $200,000 and spends 50% of it in the following way:

$15,600 housing - 20% tax on 6000 of it - $1200
$2400 staple food - tax free
$2400 eating out/not staple - 20% tax $480
$4800 healthcare - 20% tax on $2,400 - $480
$54,800 discretionary at 20% = $10,960
$20,000 trip to Europe at 0% = $0
$13,120 total tax, or 6.5% of income

EDIT: Also let’s not kid ourselves. Replacing all US Federal taxes will require a 40-50% sale tax.

Last edited by JSH; 05-16-2019 at 07:23 PM..
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