Re: Taxes Re: Politically Correct Description of the Third World

[Erik Reuter]

On Sun, Jan 28, 2001 at 11:56:26AM -0600, Julia Thompson wrote:
> I'm not sure.  If they bought a house long enough ago, the interest paid
> on it isn't going to amount to anywhere *near* what it does when the
> mortgage is new.  (On the other hand, you're paying down principal faster
> then, and that's at least a nice feeling.)  It would depend on when they
> bought, and how long their mortgage runs.  Now, it would be reasonable to
> assume that the first 10 years of a 30-year mortgage would have the sort
> of offset you describe, but I'm not positive for after that.
> 
> The other thing is, do they have sales tax, and how much of their income
> is going into that when they buy things?

All good points, but I think, small ones. I exaggerated a few taxes in
order to make the calculation easier and I neglected a lot of small
things that would reduce the tax (exemptions, deductions, tax-free savings,
tax caps, lower tax brackets, etc.)

I think it is very unlikely that if every item were counted that they
actually paid 46% of their income in taxes. If it is true, I would
love to see a detailed accounting.

Do YOU pay 46% of your income in taxes? I don't--not even close.


-- 
"Erik Reuter" <[EMAIL PROTECTED]>       http://www.erikreuter.com/