[lucysmom]

Why don't you go get the information? Maybe you could get a more recent expenditure report.

The BLS acknowledges the rather large difference between reported income and expenditures. It relies on self reporting when gathering information and admits a significant margin of error.

[Principled]

Why would someone mis-report to BLS?

Do you think there is a similar mis-reporting to the IRS?

How would you reconcile the fact that the IRS shows 20% less in earnings than we spend in the aggregate?

[Principled]

Oh yeah- and when the tax is on spending instead of earnings, how will capturing that previously mysterious (untaxed) 20% affect collections?

Could some of it be the illegal economy?

[Principled]

Which is one reason the rate will be lowered in future years.

That ALL individuals (obviously to include all voters) benefit from a rate reduction puts all individuals (and obviously all voters) united in favor of a tax cut. That's not the situation we have now under the income tax.

Also, under the nrst when ALL individuals pay the same marginal rate, all individuals will be united in opposition to any increase. That's not the situation we have now under the income tax. Now, it's "tax him" or "tax the other guys"...

[ancient_geezer]

It relies on self reporting when gathering information and admits a significant margin of error.

Hmmm, ever wonder why large groups of people would not tell the government how much they make in income?

 

Table 2. Income before taxes:
Average annual expenditures and characteristics, Consumer Expenditure Survey, 2001

Complete reporting of income a/

Item	Total complete reporting	Less than $5,000	$5,000 to $9,999	$10,000 to $14,999	$15,000 to $19,999	$20,000 to $29,999	$30,000 to $39,999	$40,000 to $59,999	$50,000 to $69,999	$70,000 and over
Households (thousands)	88,735	4,100	6,829	8,099	7,014	12,075	10,508	8,737	12,480	18,892
Income before taxes b/	$47,507	$1,666	$7,675	$12,380	$17,282	$24,494	$34,456	$44,418	$58,943	$113,978
Income after taxes b/	$44,587	$1,528	$7,678	$12,388	$17,086	$23,924	$33,047	$42,362	$55,572	$104,685
Average annual expenditures	$41,395	$20,517	$16,625	$20,642	$25,028	$28,623	$35,430	$40,900	$50,136	$76,124
Net change in total Assets & Liabilities	-$3,853	$436	-$1	-$675	-$1,174	-$868	-$2,020	-$3,110	-$12,805	-$5,912
Net Change in total Assets	$4,144	$2,299	$2,746	$696	-$263	$2,665	$2,966	$5,656	-$238	$11,962
Net Change in total liabilities	$8,002	$1,863	$2,748	$1,371	$1,371	$3,533	$4,985	$8,766	$12,567	$17,874

 

Never mind, that's just a rhetorical question in a thread about reforming the income/payroll tax system ;O)