OS future

[drpeterbright]

Mr. z, exactly where did you get that $180 dollars out of the $300 sales price goes for taxes figure? What you been smokin'?

[zeradul]

Nothing.

When you spend 300$ on XP, an additional 300$ is added to Microsoft's Income, and since MS employees are near or in the highest tax bracket, their salaries are taxes just over 50%

"In 1982, Congress passed President Reagan's plan to cut the highest rate on personal income tax from 70% to 50%"

http://www.factmonster.com/ce6/bus/A0825078.html

And 50% is roughly where it is today for the highest tax bracket. If you earn less than 20 Grand, you don't pay ANY income tax, and just to put this in perspective, the top 10% of wage earners pay 60% of the Nation's taxes. And despite that the poorest 10% of US citizens are STILL on average more wealthy than 70% of the world's population.

So, for the 300$ MS earned on your purchase of XP, 150$ of it went STRAIGHT to the US government as Income tax. If we had a flat tax, (everyone would be taxed 17% of every dollar they earn) Then to keep MS's TOP NOTCH employees, MS would need to make a NET profit of 150$ PER copy of XP, and to do so, we need to add the 17% that will be taxed, (150*1.17) which means XP would hit the market at $175.50. BUT we've elected too many socialist democrats who are too short sighted to realize that lower taxes and less government, means lower prices for everyone.

As soon as we realize that MS should not have to pay 5$ in tax for every $10 dollars they earn, a system which allows the poorest 50% to pay almost NO taxes.(less than 3% of the US's total tax) But instead make everyone pay $1.70 in tax for every $10 dollars they earn, and everything would be cheaper for everyone.

If you want to see the numbers I quote, they are wonderfully graphed right here: http://www.allegromedia.com/sugi/taxes/

And if you think a flat tax is Harsh, CONSIDER WHATS FAIR. The USA is like a giant Hotel. Everyone needs a room, and all rooms cost the same amount. Everyone has access to the shower and the pool and the sink. And in my analogy everyone has access to the best highway system in the world, the state and national parks, the court system, police, etc. Everyone has equal access. Now, ITS ONLY FAIR to charge everyone the SAME amount, just like in a hotel, everyone pays the same for the same room. So the FAIR taxation method would be to charge every person 8 thousand dollars a year just to live here!... No other taxes of any kind would occur. Thats as fair as you can get. Just like a hotel. Everyone has access to the SAME goods and services provited by the government (hotel) In THIS system, XP would only cost 151$.

Now a flat tax seems like a good compromise... ehh? ;) ;) ;)

[drpeterbright]

Not sure how you connect Microsoft the company with what taxes their employees pay. The top tax bracket for individuals by the way is under 40% currently. When Microsoft sells something for $300 very little of that $300 is paid in taxes. Most of it pays expenses such as salaries, equipment etc. They get additional deductions for depreciation etc. If you compare their gross revenues with the actual tax paid to the government, it would be astonishing to you how little of that software sales price actually goes toward paying Microsoft's tax burden.

[zeradul]

Not sure how you connect Microsoft the company with what taxes their employees pay

Because for MS to be able to hire the people they employ, they must be able to pay top dollar for them, and therefore, the employees are only getting what isn't taxed. So in order to pay someone 50 Grand, you actually have to EARN 100 Grand, therefore the products of the company must also follow that ratio. What i mean is, if MS needs 150$ PER copy to pay the employees that created it, then given what their employees will be taxed, they need to charge 300$ per copy just to contend with Income tax.

The top tax bracket for individuals by the way is under 40% currently.

Ah ha! You are correct, the Federal Tax is 39.5%, however then you also need to add in State taxes which varies from state to state.

When Microsoft sells something for 0 very little of that 0 is paid in taxes. Most of it pays expenses such as salaries

Thats right! and Salaries are Taxed HARD. Just imagine if MS could hire the brilliant people they have with only HALF the money. The prices of their product would come down a BUNCH wouldn't they?

[drpeterbright]

So the real point is the government ends up with most of the money from everything we buy. Correct. Let's not give them as much to misuse.

[zeradul]

Yup, and there is only one way to not give them as much. Lower taxes. And there is only one way to do that. Less Government. And how do you get less Government? Vote for the political parties that support having less government.

[drpeterbright]

We definately agree on this zeradul. Less is definately better when it comes to government.

[zeradul]

Good. ;) :cheers:

Now keep that in mind when November rolls around. :cheers:

[JealousMidget]

Hmmm...
I am no tax lawyer, but wouldn't M$ be able to right off the salary of its employees ( at least in part) as part of it's operating cost? :?: I thought that Profit$ were taxed, not simply income, as part of that would go to just keeping the business open. There is a difference. If you spend more money than you make, there is nothing to tax. So if it cost M$ 150 bucks to produce a copy of XP and they sold it for $175, they would only be taxed on $25, which would be the profit.

[zeradul]

Right, but just imagine if MS had employees who weren't charged income tax. They'd be able to pay their people half as much (the other half was going to taxes anyways) and therefore, XP would sell for half price, because it didn't cost as much to produce.

Thats all I'm saying.

Extortionate taxes on the upper class only drive up prices for everyone. Which means, a flat tax is good, still somewhat not fair to the upper class, but it is a good compromise. That and less government means huge tax cuts. Hmm now which major political party supports both of those aspects. :?:

[drpeterbright]

Or eliminate income tax and use a flat sales tax. The more you spend, the more you pay.

[zeradul]

That is an excellent suggestion, and it makes perfect sense. BUT it has one fatal flaw. At least in the world we live in now what THAT would promote is rampant black markets. And what black markets would promote is un-reliable sellers, and therefore crime. More Crime means more police, and therefore the need for more tax, which would push more people to black markets, and I think you get the idea.

[drpeterbright]

The barter system would flourish unless you collect the tax when the manufacturer/producer makes the product.