2009 Tax Freedom Day

[Smallc]

GDP is not a calculation of individual or corporate income by any stretch of the imagination, it is simply a defined value of the cost of all goods and services produced within a nation. There is no measure of profit involved in that calculation at all.

So provide your evidence then.

[Jerry J. Fortin]

So provide your evidence then.

Evidence to what?

[benny]

You are linking individual taxes and national production, that doesn't work.

It certainly works since the Laffer curve is famous in macroeconomics.

http://en.wikipedia.org/wiki/Laffer_curve

Edited June 9, 2009 by benny

[bjre]

A graph that showed that as a percentage of GDP, the taxes we pay have decreased. Until 1997, these taxes were increasing, but as of today, the trend has been reversed. We pay less tax than we have in a log time.

Let's see the following example:

A family buy a land, and build a house, and live there. There is no extra GDP generated by the family by the building the house, they enjoy their own product.

When he sell the house, there is a purchase, there is contribute to GDP.

Then the buyer sell the house to another one, GDP add again.

So when the purchase become frequently, there is no new product, the GDP still accumulated.

There are so many lawyers, lots of people pay them, they don't produce, their purchase also contribute to GDP.

And these kind of GDP will be taxed.

Where the money come from to pay the tax and pay the part whose earned? It comes from those who actually make a product and from the next generations -- your children -- the house will even high price for them.

Sorry, above is not correct, I get it from another forum of another language, it looks like just a guess. more about GDP is here: http://welkerswikinomics.wetpaint.com/page...omestic+Product

Edited June 9, 2009 by bjre

[Smallc]

The OECD seems to think that's its the measurment method to use...I think I'll believe them first.

[benny]

Let's see the following example:

A family buy a land, and build a house, and live there. There is no extra GDP generated by the family by the building the house, they enjoy their own product.

When he sell the house, there is a purchase, there is contribute to GDP.

Then the buyer sell the house to another one, GDP add again.

No because the GDP doesn't include second-hand goods.