Tuesday, September 20, 2011

What's in it for me

ben·e·fit/ˈbenəfit/
Here's a little story, about me, it's true.  
I work on a contract basis with a good sized trucking company.  This company is Privately held so they don't release financials, but I infer that on a good year they (The Owners) make well into 8 figures.  Clearly they are "Wealthy."  Meanwhile I make well into 5 figures, pretty much even in a bad year. 

Simple question.
How does it help me to raise there TAXES?

Taxes do not equal Income


tax

[taks] noun

Where do taxes fit into the budget process?  We tend to analgesia the Federal Budget with our house hold budget and in some ways it carries over.  If we have a budget problem at home, we must either decrease spending or increase income in some category(either borrowing or earnings.)
The Federal Government, Same thing.  
However if we change our thinking just a little to say "The Budget Of The United States."  That is the countries budget, we can see that when we tax it's not an increase in income at all.  It is then more as if I had taken a little off of the "Kids lunch money" line item and put it onto the "Dad's Pizza" line item.  Some one ends up going hungry, with no change in top line or bottom line. 
Tax Increase Does Not Equal "Income" Increase