46 ms·

Yes, that is exactly right. But bear in mind Google's margin is 24%+

• shyn3 14y ago
  *Grocery stores usually have 3-5% margins. I was using Google as a hypothetical if their margins were low. So basically businesses would charge a sales tax (3%) increasing prices for the consumer. Then the consumer would also pay 3% income tax. The consumers would pay 4% wealth tax. The business pays 3% revenue tax, taken from the consumer. The business wouldn't pay 4% wealth tax. Essentially the business would pay 0% tax, and the consumer would be on the hook for it all. So a person who earns $50,000 and saves $20,000 per year would pay the following: Year 1, $1,500 on $50,000 Year 2, $1,500 on $50,000 $20,000 from previous year saved - 4% tax $800 a year $2,400 in total taxes. Year 3, $1500 on $50,000 4% on $40,000 = $1,600 $3,100 total tax By year 20, the consumer who would have accumulated $400,000 would end up paying a total of 170k in taxes on savings, resulting in almost a 42% tax rate on their wealth.
  • jf271 14y ago
    Which is why tax flight would be a big risk.It compounds over time. You pay taxes on the same money year after year. Nevermind what happens if you save even more. Why stay in an economy that is dying from taxation when you could move to an area with a vibrant economy and avoid the tax. The US and UK are slowly becoming dinosaurs. The amount of taxes they need to keep functioning as handout societies will be the end of them.