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That still seems quite an aggressive measurement. The payroll taxes are part of compensation, corporate and state taxes aren't paid until there is a profit and those are paid by the shareholders, and the property taxes are usually a fraction of the rent. Gas and excise taxes seem to be the only valid fees that will add a considerable amount to the vehicle because those will go up for each vehicle that is either produced or transported, but I can't see the final cost coming to 25%.
OK lets take automobiles, Automobiles start a base materials, which must be mined in the mining industry or created by the petrochemical industry. Approx. 8.3% of the total cost of their payroll must be included in those raw materials and their payroll will usually account for 30% to 38% of their total revenue.
Now those raw materials must go to the steel manufactures, or bulk plastic manufacturer where another 8.3% is added to the cost of their payroll and increases the end costs.
Now the steel / plastic must go to the factories which produce the parts for the automobile and once again 8.3% are added.
Then the auto manufacturer must assemble the automobile using those parts and in the process add another 8.3% in payroll tax.
Finally the dealership where you purchase the automobile must add another 8.3% to their payroll cost of the completed automobile to cover their payroll taxes.
And now you get to pay whatever the sales tax rate is in your state to purchase that automobile. Like I said add it all up and then extrapolate that to every product and service you purchase.
Then on top of that add all the interest you pay because you have financed much of what you have purchased in dollar terms in your life.
Many of people pay thousands per month in mortgage interest alone, in addition to auto loan interest, and credit card interest that often tops 20%.
Most families will earn more than million dollars in their entire career and have little or nothing to show for it as they enter their advanced years.
Where do you think all that money goes? Mostly taxes and interest.
OK lets take automobiles, Automobiles start a base materials, which must be mined in the mining industry or created by the petrochemical industry. Approx. 8.3% of the total cost of their payroll must be included in those raw materials and their payroll will usually account for 30% to 38% of their total revenue.
Now those raw materials must go to the steel manufactures, or bulk plastic manufacturer where another 8.3% is added to the cost of their payroll and increases the end costs.
Now the steel / plastic must go to the factories which produce the parts for the automobile and once again 8.3% are added.
Then the auto manufacturer must assemble the automobile using those parts and in the process add another 8.3% in payroll tax.
Finally the dealership where you purchase the automobile must add another 8.3% to their payroll cost of the completed automobile to cover their payroll taxes.
And now you get to pay whatever the sales tax rate is in your state to purchase that automobile. Like I said add it all up and then extrapolate that to every product and service you purchase.
Then on top of that add all the interest you pay because you have financed much of what you have purchased in dollar terms in your life.
Many of people pay thousands per month in mortgage interest alone, in addition to auto loan interest, and credit card interest that often tops 20%.
Most families will earn more than million dollars in their entire career and have little or nothing to show for it as they enter their advanced years.
Where do you think all that money goes? Mostly taxes and interest.
This is all nonsense though. Payroll taxes are a part of compensation and employers are required to pay people. So what are you trying to say?
Your claim about interest doesn't make sense either since car loans are usually offered at 0-3% and home loans average a little over 4%. Meanwhile, you can get about a 10% return in the equity market.
This is all nonsense though. Payroll taxes are a part of compensation and employers are required to pay people. So what are you trying to say?
Your claim about interest doesn't make sense either since car loans are usually offered at 0-3% and home loans average a little over 4%. Meanwhile, you can get about a 10% return in the equity market.
Yes. The usage of capital incurs either interest or opportunity cost (or a combination), there's no escaping it.
This is all nonsense though. Payroll taxes are a part of compensation and employers are required to pay people. So what are you trying to say?
Your claim about interest doesn't make sense either since car loans are usually offered at 0-3% and home loans average a little over 4%. Meanwhile, you can get about a 10% return in the equity market.
Your capacity to understand, is a result of your public education. The fact is that the majority of what most people earn goes to pay interest and taxes both directly and indirectly.
Your capacity to understand, is a result of your public education. The fact is that the majority of what most people earn goes to pay interest and taxes both directly and indirectly.
As discussed in post #359, it is unclear what is or should be meant by this.
Your capacity to understand, is a result of your public education. The fact is that the majority of what most people earn goes to pay interest and taxes both directly and indirectly.
Private school actually and one of the best Universities in the country.
The largest expense for most people is going to be housing, education, transportation, and to some extent healthcare. Now, in all of these expenses the interest and tax portion is but a tiny fraction of the total. Rent is based on the local supply and demand. A mortgage makes sense when it is cheaper than renting. The largest or second largest portion of the transportation expense is going to be depreciation. And in both housing and transportation you are looking at an interest rate below inflation or just above it. Taxes, for the entire country, come out to around 22%.
Private school actually and one of the best Universities in the country.
The largest expense for most people is going to be housing, education, transportation, and to some extent healthcare. Now, in all of these expenses the interest and tax portion is but a tiny fraction of the total. Rent is based on the local supply and demand. A mortgage makes sense when it is cheaper than renting.
This is an oversimplification. Mortgage vs. rent is not an apples to apples comparison.
Quote:
Originally Posted by lycos679
The largest or second largest portion of the transportation expense is going to be depreciation. And in both housing and transportation you are looking at an interest rate below inflation or just above it.
With the exception of older used cars where interest rates go way up.
Quote:
Originally Posted by lycos679
Taxes, for the entire country, come out to around 22%.
Total, combined tax rate. Not property tax though.
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