There’s physics, algebra, and trigonometry … now we have progressia:
Employing Sally costs plenty too. My company has to write checks for $74,000 so Sally can receive her nominal $59,000 in base pay. Health insurance is a big, added cost: While Sally pays nearly $2,400 for coverage, my company pays the rest—$9,561 for employee/spouse medical and dental. We also provide company-paid life and other insurance premiums amounting to $153. Altogether, company-paid benefits add $9,714 to the cost of employing Sally.
Then the federal and state governments want a little something extra. They take $56 for federal unemployment coverage, $149 for disability insurance, $300 for workers’ comp and $505 for state unemployment insurance. Finally, the feds make me pay $856 for Sally’s Medicare and $3,661 for her Social Security.
When you add it all up, it costs $74,000 to put $44,000 in Sally’s pocket and to give her $12,000 in benefits. Bottom line: Governments impose a 33% surtax on Sally’s job each year.
… so, who benefits?
… so, who benefits?
it sounds like the insurance company sure as hell benefits. Christ, $12,000 a year? Really?
This is a great article….I would love to see a Canadian example for the same income level.
If you want less of something you tax it.
Deduct everything but income taxes and you find that Sally’s company is required to shell out about $7,168 (above her salary) to employ her annually. The reality is that Sally’s company can afford to to employ her for $7,168 more than what they actually pay her. Sally, could then use those funds to voluntarily finance whatever security and healthcare/insurance needs she has according to her own individual choice and free will. The company does not pay for this stuff. Sally does without choice. Why? Because the state doesn’t trust her with her own money.
And where is John Galt when you need him…
I too would be interested in a comparison to Canada. I read an interesting article a couple weeks back that basically posited that while Canada has higher personal income taxes, the lower business tax rates were fueling better job creation than in the US.
On the topic of the state not trusting someone with their own money, beer and popcorn anyone?
My guess is that he’s out purchasing some CFL light bulbs.
Nothing quite like bending over for ridiculous government edicts.
Investments needed for my new factory: “Headsoff Inc.”
Its new, foldable, completely portable, easy to install in any town square, my lightweight guillotines are perfect where corrupt edicts prevents justice being served correctly when dealing with institutionalized theft is an issue.
Cut the middlemen, cut the costs, cut the grief and best of all, cut the heads of aristocrats, elitists, environuts and of course government bureaucrats.
Warning: Read manual carefully before assembly. Sharp blade inclosed.
Hmmm, and are we overlooking Sally’s “contribution”. For 2010 if single she’ll be in the 25% Bracket ($34,000 – $82,400)
Right Honourable Terry Tory:
“Enclosed.”
[quote]it sounds like the insurance company sure as hell benefits. Christ, $12,000 a year? Really?[/quote]Me
You don’t know how stupid you are…The middle Class in America pays 100% of all entitlements, and most don’t realize how..
America is not Canada…The Health insurance Policy of Sally actually pays DOUBLE her legitamite costs, first for Sally and then for ONE, OR MORE uninsured/Medicaid persons. The Insurance Policy is priced to accommodate that fact, each State have thier Own Deal with the Insurance companies based on the number of uninsured & State entitlements. The State
Costs are a pass through of Insurance Funds
If you don’t believe me try USA Auto Insurance and the Uninsured Driver FUND on each policy.. Same thing. The Insurance policy is priced to pay 100% of both drivers. The uninsured drivers liability is paid out of the funds collected from the insured drivers premium. Fact is that driving uninsured is as easy as falling off a log and their numbers must be ~40% of all drivers on the Road in States like NY & NJ.. The Cost of Auto Insurance is now in the Stratosphere
The Democrats now realize that they screwed up Obama Care..
NO DOUBLE BILLING = NO MONEY FOR ENTITLEMENTS
Frankly its just easier to fire Sally. She has become to expensive. As has most Government.
There is a hardcore need to see these rules exterminate to the point. the bureaucracy can’t make their own wages, laws or holding a gun to the head of the ROC.
Time to eliminate unions in public service. Most folks who work real jobs in the civil service have nothing but contempt for Unions. Which these days are in cahoots with the ruling class. They sure don’t stand for the workers they denude every week, with artificially high forced Union dues.
The structure of our present Bureaucracies is the fact there entirely absolutist from top to bottom.
Its more like absolute monarchy than anything else. With the usual thugs & hoodlums.
JMO
Fire her, and start doing business for cash only.
When I read progressive propaganda I’m torn between legally arming myself or just sticking my head in the oven. Their loopy upside down parasitical logic makes me purple in the face, these people are a threat to democracy they are no less despicable than hard core communists wingnuts.
In Canada it’s way better to be self employed and look after yourself. Americans have far too much government control of their lives.
Land of the Free?
Just an illusion.
rose
[………When I read progressive propaganda I’m torn between legally arming myself or just sticking my head in the oven……]
Be smart and arm yourself—the alternative is what they want. Legally or illegally? Legally makes access to better hardware possible but puts you on an internet accessable hit list.
This is why it is easier for Sask Health (and OHIP etc.) to pay nurses vast amounts of overtime than it is to hire more nurses. The benefits overhead on a union nurse is considerable.
That government mandated, union extorted overhead is one of the main reasons why your Grandma’s “hospital room” is a numbered line of duct tape in the hallway.
It is also the reason fully half or more of the construction industry is under the table. Nobody can afford to do business otherwise.
[quote]it sounds like the insurance company sure as hell benefits. Christ, $12,000 a year? Really?[/quote]Me
You don’t know how stupid you are…The middle Class in America pays 100% of all entitlements, and most don’t realize how..
Yeah, I’m real “stupid” allright. I paid around $12,000 in federal tax last year and got national defence, policing, infrastructure and everything else and oh yeah, I almost forgot… HEALTH INSURANCE to boot.
The woman in the example along with her employer had to fork out around 12K to some private insurance company, and she STILL had to pay income tax.
Man, I sure feel like a sucker.
Ha, you -are- a sucker. That “health insurance” you got? Good luck with that. Don’t get me started on national “defense”. And the police services? Visit Caledonia.
Hope you like candle light, you’re going to be seeing a lot of it when the Liberals get done updating your power generating infrastructure with windmills.
But hey, great G-20 eh? Nice party!
Hey Me…. If you paid 12,000 in federal income taxes last year that means you paid another 6000 or so in provincial tax and on top of that you paid sales tax, gst, gas tax, hidden tax, green tax, liberal tax, bullshit tax and tax tax and when you are done you will have paid almost 50% of what you made in taxes. I think you are paying more than you think for your “free” healthcare
economics 102:
the reason these numbers are so high is the gluttonous quest by big bizznizz to own everything. why are the so many big ticket boys on wall street? why do they ravage the nations’ economies to slake their greed?
gee, I think I just answered my own question.
Sally isn’t the problem. Sally is doing what Sally needs to make a living and she learned it from a string of bosses above her income level. WAY about her income level.
golden parachute anyone?
See, in Obama’s world the problem is Sally makes too much money and should probably rely on the government more than going to work. That, and he’s made sure her health care will be “free” in the future. Problem solved! /sarc
But,but…healthcare is supposed be free! I think I’m gonna cry…help me Obama, help me.
If you paid 12,000 in federal income taxes last year that means you paid another 6000 or so in provincial tax and on top of that you paid sales tax, gst, gas tax, hidden tax, green tax, liberal tax, bullshit tax and tax tax and when you are done you will have paid almost 50% of what you made in taxes. I think you are paying more than you think for your “free” healthcare
If you’re an employee you’re getting screwed, but NOT if you’re self employed in Canada. Last year ALL of my taxes [all you listed plus property tax] amounted to 12% of my gross income.
Our local health care services are just fine thank you very much. Remember, Cdn health care is delivered by the Provinces. Some of us get excellent care while some of you don’t. It all depends on your Provincial govt and what their priorities are.
“John Galt”? Really? I don’t think you know how ridiculous your handle makes you look. It is almost as if you are blind to irony, but no, that can’t be it… can it?
Paying benefits to an employee is an option. This option is completely tax deductible for the companies portion paid; in Canada at least. So using a benefits plan in the formula is really just a canard. In fact any company that doesn’t offer benefits in Canada is just stupid.
I don’t think
Posted by: tim in vermont
That about sums it up. But you’re in Amerika so it’s easy to understand why.
I don’t think
Posted by: tim in vermont
That about sums it up. But you’re in America so it’s easy to understand why.