there's no way you can twist it to $1.3 Trillion
http://fms.treas.gov/mts/mts0901.pdf
- Total revenues collected by Feds in '00 = $2,025 billion
Flatten the Tax Code before it Flattens Us, Lawrence W. Reed; Makinac Center April 1, '97
The work of economist James L. Payne is perhaps the most authoritative and exhaustive available on the cost of today’s federal income tax code. He has demonstrated that most of the expense of compliance does not show up on the government’s books because businesses and individuals in the private sector are paying it—in time and bills from tax preparers. In his 1993 book, Costly Returns: The Burdens of the U.S. Tax System, Payne assembled data from the IRS and other sources—public and private—and arrived at a startling conclusion: For every tax dollar collected and spent, Americans pay an additional 65 cents in collection and compliance costs!
http://www.ncpa.org/ea/easo93/easo93f.html
The Internal Revenue Service claims that it runs an efficient system that costs the country less than 1 percent of revenues collected. But the IRS does not take into account the additional costs borne by taxpayers because of the complex tax system.
- In order to comply with the tax code, taxpayers incur costs (equal to about 24 percent of net taxes collected) for record keeping, data processing, learning the tax code and filling out forms and supporting documents.
- Because the tax system discourages work, saving and investment, the nation loses real ouput equal to about 35 percent of net tax revenues.
- The costs of enforcement and of tax avoidance and evasion total another 6 percent of net tax revenues.
When these are considered, the total cost of operating the U.S. tax system is more than $500 billion in 1990 terms, or 65 percent of net tax revenues. This means for every dollar the IRS collects, it actually costs taxpayers $1.65.
Buy the book lewey you might actually learn something from it.
0.65 * $2,025 billion = 1.316 Trillion. in 2000.
And get a refresher course in arithmetic. Concentrate real hard on percentages and factions.
0.65 * $2,025 billion = 1.316 Trillion. in 2000.There were $529.01 billion in corporate taxes last year.
0.65 * $529.01 billion = $343.85 in corporate compliance costs
Embedded Tax Calclulation Using the "Old Person" Method
- Total revenues collected by Feds in '03 = $1,782 billion (17.71% of prices)
Those tax components which will not change prices as a consequence of enactment of HR25
- Individual Income Tax (Labor) = $793.70 billion
- Employee half of Social Insurance = $674.98/2 = $337.49 billion
- Excises = $67.52 billion
- Customs Duties = $19.86 Billion
- Miscellaneous = $34.42 Billion
============================
- Total constant price factors = $1252.99 billion
- Remainder federal tax components affecting price = ($1,782-$1,252.99) = $529.01 billion
Adjust for a conservative $343.85 billion cost of tax compliance, (The Flat Tax; Hall & Rabushka, '95, What the Income Tax Costs the American People: quoting James L. Payne estimates 65 cents for each dollar of revenue collected).
- Total tax related factors affecting consumption price = ($343.85 + $529.01) = $872.86 billion
Estimated change in consumption prices as consequence of enactment of a National Retail Sales Tax, repealing all business income and payroll taxes:
17.71%*($872.86/$1,782) = 8.67% reduction in consumption prices
And get a refresher course in arithmetic. Concentrate real hard
LOL! Were you saying something about concentration? It's really hard for you to not skew the numbers isn't it?
I'm still waiting for that demonstration on how you can reduce yout rent 20% and not lose money...It should be no problem for you, you're such a mathematician and all