Has it ever occurred to you, government employees and contractors use your tax dollars to pay their income taxes?
Let me explain. Every level of government has a treasury. Picture these treasuries as pools filled with tax money taken from corporate profits and worker earnings.
American workers are divided into two sectors; the Public Sector and the Private Sector. The Public Sector is made up of every organization and person who receives compensation directly of indirectly from a government agency (i.e. politicians, government workers, government contractors and subcontractors, and their employees, etc.).
The Private Sector is the rest of us and our businesses. There are also organizations and corporations that work in both sectors.
Private Sector companies and workers contribute to the tax pools. Public Sector organizations and workers drain the tax pools.
When taxes are paid by Private Sector companies or withheld from worker pay. Money is transferred from private bank accounts to the tax pools, raising pool totals.
Public Sector (and government sponsored) organizations do not pay taxes. They spend the Private Sector’s tax money. When public workers are paid, they are paid from the tax pool. When public worker taxes are withheld from public workers’ pay, it doesn’t add anything to the tax pool total, instead money is drained from the tax pool to cover HR and processing costs.
Public employees may want to believe they are contributing to the government’s tax-pool, just like private sector employees; but most are not. Their paychecks are drawn on tax pool accounts fund by the Private Sector. The taxes withheld from their gross pay are simply bookkeeping entries moving money from one tax pool to another. Money is not being added to the tax pool total. However, money is being drained from the tax pool total to cover the administrative and processing cost.
Public workers who make money in the private Sector have to pay to have to pay taxes on income gained from the private sector, such as: income from investments, inheritance assets, etc.
I am not trying to minimize the role of public employees. The function of government is to protect the life and property of its citizens. That protection costs money. Private Sector tax money is used to pay the bill for everyone, in both Sectors.
As a liberal who supports larger government, you may choose to overlook the jobs performed by thousands of incompetent public workers; but as a businessman how can you look away, when you know, a sizable chunk of the money you pay in corporate and personal taxes is being mismanaged by political appointees, or repeatedly wasted by representatives on unnecessary staff members and programs designed to buy votes.
Al
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