84 votes

The math of your slavery.

[Thanks again to all. The math is complete! I just need to plugin and hookup all the footnotes. I promise to do that as soon as I can. In the meantime, if you have any questions on a specific line, please ask. Also, if you think of any costs that I forgot, or have an issue with one of my figures, please let me know.]

Your slavery is well hidden. Not everyone understands it when I say that the government steals 70%+ of your life because they haven't seen the math. So I am going to break this down for everyone. I will try to reference sources where possible. Instead of going into long explanations for each item, I will foot note the explanations.

Before I go into it though, something which you need to understand is that no one up the food chain pays for anything. All extra costs and expenses are passed on to the consumer in the form of higher prices, so you may not understand that $3 of that milk price is government theft, but it is.

Also, I am not going to differentiate between local, state, and federal taxation. It is all government theft and I see no reason to make a distinction.

Average Household Gross Income : $62,857.00+
Federal Income 25% Bracket (-----) : $ 6,876.00-
Estimated State Tax Bracket ( 5%) : $ 3,142.00-
Social Security Tax (12.4%) : $ 7,794.00-
Unemployment insurance, etc ( 2%) : $ 1,257.00-

---
So your estimated "net" is : $43,788.00+
Inflation*1 ( 10%) : $ 4,378.00-
Sales Tax ( 6%) : $ 2,364.54-
Compliance SOX* ( 0.1%) : $ 43.00-
Compliance General ( 0.5%) : $ 218.00-
---
Adjusted Spendable "wealth" : $36,784.00+
---

[Vehicle Ownership]
Gov Taxes Vehicle Ownership : $ 200.00-
Gov Extortion(1 ticket/y) : $ 300.00-
Gov Mandate (Insurance $150/m) : $ 1800.00-
Fed Fuel Tax ($.495/g, 15g/w) : $ 386.00-

After Vehicle Taxes/Theft : $34,098.00+

[Housing Costs]
Property Taxes ($150k@1.5%) : $ 2250.00-
Ordinance Compliance*2 ($5k/y@2%) : $ 100.00-
Trash/Water Service (used or not) : $ 480.00-

After Housing Taxes/Theft : $31,529.00+

Wow, we haven't even fed ourselves and the government has already looted around 50% in DIRECT and easy to understand costs. Just wait until we get to the indirect costs!

[General Living]
Food Price Controls* ($300/m@10%) : $ 360.00-
1 Week Vacation (Hotel $100/n@15%) : $ 105.00-
School Supplies (2 Children $100/c) : $ 200.00-
Utility Taxes ($300/m@10%) : $ 360.00-

Which brings our total wealth to : $30,504.00+

Whew... That's it right? It's been rough but we seem to still have some left. First, you have to remember that the above is JUST what government takes, forces, or controls. That doesn't include ANYTHING tangible, just the taxes on tangible goods and services! And unfortunately, we aren't done.

[More pain]
Healthcare Mandate (Family Plan) : $14,700.00-
(Or if you opt for the fee, it can be considerable but somewhat cheaper!)

Government taxation and compliance however is not a "specific" cost. It, in fact, has would I call a 10% life. At each stage, it has an impact. For instance, when you buy a stereo, you are also paying for fuel taxes in transportation, tariffs on import, regulation and compliance overhead for that company. Who in turn, is paying the same costs for their suppliers, etc. The ability to calculate this 10% life in the form of higher prices is almost impossible in complexity. But given the number of hands that these things pass through before you ever see it, I think it is more than fair to take off about 10% of our initial "Adjusted Spendable Income" of 36,784.00 creating a cost of $3,678.00.

Actual wealth after gov interference to : $12,126.00

In closing, I want to say this. What prompted me to do the math is that when I started to do well ($60k range), my friends who were still making 15-20k looked at me like I was rich, but for some reason, I always seemed to be just as bad or worse off than them. Some of the math is impossible to know, and so where there is no clear answer, I made a conservative guess.

So in actuality, you are only circulating about $12k if you make/spend 60. The rest belongs to our masters. And don't even get me started on the corporate masters which take away what little is left.

I have no clear way to correctly estimate what the cost of goods and services would be without this interference but what I can say is that they leave you with only 19.2% of your initial "wealth".

This is why we can't have nice things. :)

Various Sources:

http://fairmark.com/reference/index.htm

http://budgeting.thenest.com/average-american-household-budg...

http://taxfoundation.org/article/state-individual-income-tax...

http://www.ehow.com/how_4828711_calculate-social-security-ta...

http://en.wikipedia.org/wiki/Fuel_tax#United_States

http://www.auditnet.org/articles/Sarbanes-Oxley_Implementati...

http://www.unitedliberty.org/articles/falling-prices-why-is-...

http://articles.cnn.com/2010-03-24/health/health.care.penalt...

http://articles.latimes.com/2009/oct/15/business/fi-hiltzik15

Edit:
Thanks to Dr.No for pointing out that I had left off an inflation chart from the references:
http://www.shadowstats.com/alternate_data/inflation-charts

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I hope you can see he was impressed

and agreed with your point.

Be well.

wolfe's picture

Thank you...

And please don't misunderstand. I do not take the comments badly at all. They help me to improve the final work. I will try to address all of your points directly in the post tomorrow.

Tonight, I finally got a breather from a rough day, so am just relaxing with a drink at the moment... :)

The Philosophy Of Liberty -
http://www.thephilosophyofliberty.com/

Telephone Tax

I have an unlisted telephone number, which cost $15.00 per month.
This is just a simple "land-line", and the taxes I pay for this is $10.00+.
The total bill is more than $25.00 for a $15.00 phone service.
All Federal + State + Misc. taxes.
What's with that?
A Ten Dollar fee on a Fifteen dollar bill.

wolfe's picture

That's covered...

In the "Utility Tax" line. An estimated $300 per month for utilities, with an also estimated 10% average utility tax rate between phone, electric, and other standard services.

The Philosophy Of Liberty -
http://www.thephilosophyofliberty.com/

Get out of dodge!

You would do you well to buy a townhouse in Nevada.. stay or trade 181 days a year... or Texas or Florida.

I could never figure out why people would buy a cabin on the border.. until I looked at the California taxes.

They have townhouse for less than 25K

Put a couple of computers in there with remote software. Ping the IP addresses or send some e-mail.

You be in a tax free state..
OV

Just want what seems to be missing, Truth and Justice for ALL
What is fraud except creating “value” from nothing and passing it off as something?

Or better yet Lets Make some noise Ron Paul has to win

Obama, or Mitt is just the TAX the average(you and me) and give to the large elite 100 family's

If Ron Paul doesn't get in the system will break.. its getting pretty thin now.

The recovery that is spoken of all went to the top.. and got paid for by the rest of us. (MONEY PRINTING)

THE FACTS ARE THE VERY RICH GOT RICHER AND THE 99.5% GOT LESS

Call your local news and complain

Read something like Winner-Take-All Politics:
How Washington Made the Rich Richer--And Turned Its Back on the Middle Class

OR
Predator Nation: Corporate Criminals, Political Corruption, and the Hijacking of America

Google those read them then have INTELLIGENT conversation with your friends about how the system is broke unless your the top .0001%

interesting fact if you say the Democrats are bad your right, and if you say the Republicans are bad your still right.

If you want to say something that makes you sound like a news sheeple (ignorant)say the other party will make it better, the last 30 years have seen the government and elite steal it all from the people.

Just want what seems to be missing, Truth and Justice for ALL
What is fraud except creating “value” from nothing and passing it off as something?

I would only consider the

I would only consider the things directly above the adjustable spendable wealth as direct taxes. The other taxes are highly variable based on what you own or buy. Someone who owns a tiny 500-1000sqft house isnt going to be paying the same as someone who owns a 3000+sqft.
Same with a vehicle. In this case, someone doesnt even have to own one if they live in a city.
As for sales tax, in Virginia that is not 6%, its like 4%. And on smaller perchases like food, it is only 2.5%
Just nitpicking here, but I have only ever gotten 2 tickets in my life. So this means I get a ticket more like once every 4 years or something like that on average.

To climb the mountain, you must believe you can.

wolfe's picture

Even if you don't own.

You are still paying property taxes. Your landlord is charging you property taxes as a portion of your rent. He is not going to charge less for rent than what it costs him to maintain the place including taxes, and regulatory compliance, just like any other business.

Your rates will vary on many things, including insurance. If for instance you don't own a car, you will be paying additional cab taxes, and/or bus taxes, etc etc. This was to illustrate a norm, since it is impossible to perform the math for every individual case.

The fact that the government mandates something, and if I don't live within the "norm", my situation get's dramatically worse, is just as much a problem. For instance, my insurance company was able to jack up rates because of my accident, BUT, I have NO recourse since it is state mandated.

The Philosophy Of Liberty -
http://www.thephilosophyofliberty.com/

I commend your effort, but I have an even simpler way to look at

it:

ALL spending is a "tax."

ALL spending will take money out of your pocket - money YOU worked for.

This is because government does not produce ANYTHING.

It can only TAKE from you and give to others. (or some of it back to you, but never all)

While I detest taxation, it should not be the focus. (though I would cut off the spigot unilaterally first if I could)

The focus should be on spending and the understanding that any degree of it, must be taken by force, and it must come from someone who produced something.

Thus, when looking at spending, all of it must be viewed through this lens.

This is why the SOLE purpose of government is to SECURE rights. It is NOT to "provide services" in any shape, form, or degree.

If it is doing anything OTHER THAN securing rights, it is to that degree destroying them.

Cutting government spending is also the wrong way to go.

One must start from ZERO and start spending until they hit one of two barriers - either the Constitutional limit of power, or the practical amount that can be taxed without creating worse problems than already exist. Whichever you reach first, that is the limit of how much government you can have. The rest is a non-starter, not even meriting discussion.

A few corrections:

#1 - your first tax line, the so-called income tax, is pegged at 25%. But the number you calculated, is slightly over 10%.

#2 - I think your "10% life" figure is too low. I'm not a fan of the so-called Fair Tax bill, but its proponents did the math on a single product like what you described. They weren't able to track down everything either, but their best estimate puts this figure closer to 50-66% of the cost of ALL products is embedded and passed on taxes/regulatory compliance. They used the example of a car which if memory serves correct, had a $28k sticker price. The price without embedded taxes, but still including the same profit margins along the way in the entire chain of production, means that car would sell for only $11k. A much more considerable "cost" of embedded taxes than the 10% figure you cite.

#3 - I'm not sure why you included "school supplies" or "water/trash" service. If someone were sending their kids to private school, they'd still have to buy supplies every year. That is not something unique to public schools. And you either pay a government utility company for water or you pay a private company yourself. (or you may have a well and pump) But you're going to pay for water one way or another. (wells and pumps aren't cheap and require some maintenance) Trash too is either picked up by a contracted company with the city/county or you pay for it privately. I find it not reasonable to presume someone would not have either water or garbage expenses of some sort. Now, what they should or could be, is a different matter.

wolfe's picture

explanation...

1) Refer to the tax tables. This is how you calculate the 25% tax bracket. It is not 25% of your gross income, but 25% of the amount above a given amount for a year.

2) It is low to be conservative and because it is only the left over "residual" portion.

3) School supplies are unique to public schools because it is double dipping. It is an "added" tax for the school system. There was a time when this wasn't a requirement. Maybe you misunderstand. I am not talking about buying your kids binders and backpacks. I am talking about the school requiring you to bring in 5 reams of paper, 200 pencils, etc etc for their internal class room use.

I had a well, and septic system but was forced to use city provided services. This is mandatory, forced system in most places.

The Philosophy Of Liberty -
http://www.thephilosophyofliberty.com/

Migrant workers aka "illegals"...

...pay most of these taxes as well by virtue of living here and not in China.

They also get an under the table hourly rate wage that is heavily "taxed" by their employer. The employer prefers migrant slaves as opposed to the local ones since they cost him half and he has no obligations.

And I am not even talking about domestic servants who are women. Then you can cut the wages in four and add all forms of abuse that goes unpunished but gives pleasure to the employer. The domestics also pay all of the other taxes.

As long as there are employers who will not hire the local workers there is DEMAND for migrants and there is border crossing North. In recent years there was a considerable crossing South, but not much has visually has changed around me.

I thought I add this dimension to the conversation since we are talking about modern slavery.

We are all slaves.

Ron Paul ... forever.

Bump.

This is well thought out work.

"We have allowed our nation to be over-taxed, over-regulated, and overrun by bureaucrats. The founders would be ashamed of us for what we are putting up with."
-Ron Paul

It gets worse for some.

As a day trader if I profit $100,000 in a month and send that much money home, I pay;
43% right off the top or $43,000 (35% Federal - 8% State)
Then I have a local county employment tax of 1.5% or $1,500.

There is no way to escape these kind of taxes without getting audited because they know a day trader has no overhead to deduct.

I'd love to see what California looks like.

Vehicle tax, sales tax, gas tax, and income tax in California are at least double your averages.

I have sworn upon the altar of God, eternal hostility against every form of tyranny over the mind of man. ~ Thomas Jefferson

Excellent points

to which I would add:

Being a State Licensed Driver makes you an employee of the State, making you liable for the fees associated with the "privilege" of being a "driver", including as you mentioned the mandatory insurance to cover and damage to the State "goods" you are "transporting" (either cargo or passengers <-- [look up THAT term in a legal dictionary]), road tolls, tire taxes, much higher gas taxes than you mentioned, and so on...

Then consider how few things there are that you elect to spend your "discretionary income" on that don't fuel the government in one way or another. They finance Hollywood, the computer industries, communications, travel, etc, through their corporate/facist/monopoly-capitalism/whateveryouwanttocallit off books CAFR shenanigans, hidden deals and so on.

I'm guessing the end figure in your example is actually in the low 4 digits.

Worse news

So if the government plunders 80% of your earnings, does that make you 20% free?

It would be consoling to think so, I guess, if you're a positive-thinking "the glass is 20% full, not 80% empty" type. But the truth is much worse. The problem with your numbers is that they're all measured in "dollars."

Think about what a "dollar" is. Little bits of paper issued by the Federal Reserve in conspiracy with the gang named "government," and backed by nothing at all. What's up with that?

If you and I were alone on an island, and established an "economic system" under which you would do all the productive work to keep both of us alive, and I would "pay" you for your services by giving you paper notes (aka "fiat money") -- and if you don't like the idea, I kindly point out that I have the only gun on the island -- would there be any doubt that you were totally enslaved?

Think of the Federal Reserve as the slaver, and of the government as his gun.

Their "right" to take your earnings is not limited by numbers or by principles -- only by their knowledge of wise animal husbandry: contented, free-range cattle give more milk than beaten, starving animals. The cattle have no "rights" that the rancher need respect.

As gold is the money of free men, who deal with one another as equals, fiat paper is the money of slaves. And the issuer of the fiat paper is the slave-master. If you have no rights that the slave-master is bound to respect, the percentage of your earnings that he allows you to keep is not a measure of your freedom -- because you have NONE. It is only a measure of how much abuse you will put up with before you revolt.

Recommended reading: The Most Dangerous Superstition, http://www.amazon.com/Most-Dangerous-Superstition-Larken-Ros...

Now who says government isn't slavery?

Now who says government isn't slavery?

Nice work.

'The Anarchists are simply unterrified Jeffersonian Democrats. They believe that “the best government is that which governs least,” and that which governs least is no government at all.'
-Benjamin Tucker

60k not enuff?

How is family supposed to go to Disneyland?

donvino

Thanks. (I think).

It would be impossible, therefore, to introduce into society a greater change and a greater evil than this—the conversion of the law into an instrument of plunder. Bastiat, The Law

"Only a virtuous people are capable of freedom. As nations become corrupt and vicious, they have more need of masters." Benjamin Franklin

smart taxes

... hidden in your indirect costs, passed on from corporations through the price of goods and services; through "usage fees" and other government fraud; and through hidden investments and other secrecy.

Inflation is another hidden tax as high as 10% or more per year ...

Hidden pollution, buried toxins, and other ticking time-bombs represent another 10% annually ...

Buried wellness knowledge represents another 20% annual tax in the form of cancer "care" and related mainstream medicinal frauds ...

Faux war is the ultimate needless tax on your labor. You are more like those "human batteries" in The Matrix than you know . . .

Well done!

Great thread. I find myself adjusting here and there, and voila! It really adds up.

Utilities Taxes

Heating/cooling, landline, cell phone, water, cable. These are the "small" taxes, on things we rely upon, that beat down the lower income families - where every nickle counts.

Nice job on your post. It really gets a person thinking ... and fuming;-)

Actually, those are huge taxes...

Energy, phones, utilities are all 'subsidized taxes' based industries.

What this means is that they lobby for a tax and then have that tax sent to them via subsidy so they get to profit again. It's a way for them to charge from 1.5x to 30 times what they should be charging for a given service.

For example, I've read about and verified from a friend that full coverage unlimited cell phones /w text and data costs $5/month in Italy. Same infrastructure, different billing structure.

I spend over

1000.00 per mo for food (family of 5)

For Freedom!
The World is my country, all mankind is my brethren, to do good is my religion.

Oh--I must have been behind you last week.with only a bottle of

water and a cabbage........

SequoiaTrees4RonPaul

wolfe's picture

I should probably up the food budget.

I was trying to keep it as low as possible to maintain credibility for the numbers, but $300 a month for a small family is a very difficult task so I will revise the food budget to be more within the norm.

The Philosophy Of Liberty -
http://www.thephilosophyofliberty.com/

deacon's picture

wolfe

if the numbers are lower,the readers,
the ones who can see this for what it is
will say, for me this is higher,and do the math in their heads
and correct it,for their own set of books
some even might say this is is lower,and adjust their
own tables,for their particular circumstances

i for one am forced to agree whether i like it or not
BTW,i don't like it,not a bit
but facts remain facts,hurt as they may,it is better than a lie.
deacon
not sure if it matters,but income tax returns?

If we deny truth before your very eyes,then the rest of what we have to say,is of little consequence

wolfe's picture

Thank you for reminding me about this post...

I had actually forgotten all about it, but I had put considerable effort into the research and so I am thankful you reminded me... :)

On the income taxes, I calculated what was "owed" so pay-in/returns are covered by the final number.

Now, the one thing that I didn't take into account was earned income tax credits, because they salary cutoff to get those for children is less than 60K.

The Philosophy Of Liberty -
http://www.thephilosophyofliberty.com/

deacon's picture

after all day

do you still thank me for this reminder? :)
upon further reading...i wouldn't heh heh heh
deacon

If we deny truth before your very eyes,then the rest of what we have to say,is of little consequence