What is the Optimum Tax Rate?

Ideally it would be the same for everyone. Graduated taxes suck (the incentive out).

parados wrote:

hanno wrote:

parados wrote:

Since the GDP includes all goods and services already then what could be provided that isn't a good or service? Nothing that I can see.

Final goods and services for the GDP my dear. Intermediate goods and services, most of which you need a hardhat to see, make 45% of the gross output, so, not quite two hits.

What, pray tell, are "intermediate goods and services"? Unless you are trying to count the parts required to make products as a separate taxable event there is no such thing as "intermediate goods and services."

Ah, I see, I must have hallucinated the concept and the wikipedia article on it.

Thus, intermediate consumption is an accounting flow which consists of the total monetary value of goods and services consumed or used up as inputs in production by enterprises, including raw materials, services and various other operating expenses.

parados wrote:

Companies don't as a rule sell products they are losing 45% on.

More like 90%. You think they just spontaneously generate a product and sell it?

parados wrote:

If you want to do a tax on all steps of production then your final tax rate is a far cry from the 6% you think is enough. The tax would only get added to the final cost and be paid for by the consumer. If I need 2 wookies at $1 to make a widget that I sell at $4 the production that counts for the GDP is $4. If you want to count the two wookies and tax them at 6% then that means I need to charge $4.12 and the customer now pays $4.36 with tax instead of the $4.24. It's no longer a 6% tax. But then if the wookies require a dohinky that costs .50 there would be tax on that as well so my wookies would now cost me $1.03. Then the tax on anything required to make the dohinky and so on and so on. Pretty soon the consumer is paying close to 12% taxation which isn't a 6% tax rate at all.

If you knew what you were talking about you could use pre-existing words.

If it were up to me I'd tax Parados at 100% and not pay anything myself.

Yes you did Okie. He would instead tax things such as groceries, health care, childerns clothes and other low incomes commodities so that the poor would start paying their fair share.

rabel22 wrote:

Yes you did Okie. He would instead tax things such as groceries, health care, childerns clothes and other low incomes commodities so that the poor would start paying their fair share.

What a crock (the poster). My income is shifted over to these poor folks whose Daddy really needed a condom, not cash, and yet they should pay no tax because they are poor?

****, a 22LR only costs about 3-cents.

People in my area have become poor due to industry flight. But you evidently feel that they should pay more tax, and that Paris Hilton and Teresa Heinz should get refunds.

Yes you did Okie. He would instead tax things such as groceries, health care, childerns clothes and other low incomes commodities so that the poor would start paying their fair share.