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Jon N
Jon N
8 years ago

I’m curious about Jack’s comment about a dollar generating MORE than a dollar via sales tax and trying to understand better.

I’d personally have thought if you simply track a single dollar through the system and use the 10% sales tax, you spend $1.00 at a store generating a liability of $0.10 in sales tax. The guy who receives a dollar in change is only actually getting $0.90 in change of THAT particular dollar. The store still needs to “keep” the ten cents to pay the government when it comes to tax time. If all of that dollar is given to the next customer, then the sales tax that’s paid is coming from another dollar the store has collected.

Yes, he the next customer getting your physical dollar in his change, but $0.10 of that represents some of the other dollars you spent there.

And when that person spends it at the next store, $0.09 cents of that $0.90 is sent back to the government via sales tax. And then the next guy is using $0.81 of the original “dollar”.

Now I agree that eventually all of that dollar will make its way back into government hands, but WITHOUT lending (or banks creating money), I can’t see how that one physical dollar can create more money via a simple chain of transactions.

Can someone explain further pls?

Thanks in advance 🙂

Paul
Paul
8 years ago
Reply to  Jon N

Two comments:
A penny saved is a tax free penny earned…
The dollar keeps generating taxes if it stays in the US. We could do great things for the US economy by just making an effort to spend money on US made goods.

Dave
Dave
8 years ago
Reply to  Jon N

In your example you must be assuming that the 10 cents disappears when it goes to the fed. Keep in mind that it also returns into the economy one way or another.

Dave
Dave
8 years ago

They take a cut in fees for holding it in “their” checking account, issue more debt increasing the monetary supply, take a cut for the issuance of that debt, charge interest on that debt. Rinse, Repeat. Oh, and also decreasing the value on our savings by diluting the value of the currency. I have always thought that this was part of the cause of the Great Depression. The masses thought that we were on a gold standard when we actually weren’t. Even if there were a dollars worth of gold for each printed gold certificate, there was not enough for the actual money in circulation.

Patrick
Patrick
8 years ago

For the person that requested ideas for coat hangers from dry cleaners. If you still have coat hangers left after all the crafts – your dry cleaner will probably take them back.

You can request a…caddy? I don’t know what they call it but it’s a box designed for coat hangers. My dry cleaner gave me one and every time I fill it up I give them back next time I drop off/pick up my clothes.

Hope that helps.

Joe T
Joe T
8 years ago

I cut the “shoulders” off metal coat hangers to use as landscape fabric staples.

Jason Cavanaugh
Jason Cavanaugh
8 years ago

Metal coat hangers are basically the same thing as welding rid without the flux. Redneck welding could be survivally. Grab an acetylene torch and weld away.

Lisa
Lisa
8 years ago

When I moved to my semi-rural neighborhood just outside of Austin three years ago, I sent a letter by snail mail to all 15 or so homes on my dead-end lane, which introduced myself, and gave a little history of how this California city girl ended up in a rural neighborhood in Texas etc., The letter was brief and friendly and included with a picture of myself printed on the letter. I invited everyone to contact me and included my email address and cell phone number. I got maybe 4 responses, 1 by email and the rest stopped by to say hello. I would still do the same if I ever moved again but I must say the response was a bit underwhelming.

Duncan MacDuff
Duncan MacDuff
8 years ago

Greetings Jack,

Is there a video available that I can use to introduce my company to real disaster preparedness?

The company owner wants employees to have some sort of disaster preparedness and I think it would be nice to be able to hand over a video that would be a basic “Prep-101: Getting Started” that could be shown to my fellow employees and would be 10-15 minutes, 30 at most.

Is there anything that fits this?

Keep up the good work,
Duncan

Mark
Mark
8 years ago

Don’t show this to your wife, but apparently some people think “Baby, it’s Cold Outside” is about rape.

https://youtu.be/HjlitRpz6CE

It’s about 2 or 3 times a week that I ponder whether or not I live in The Twilight Zone.

Chad
Chad
8 years ago
Reply to  Mark

I sent it to my wife and she said women who complain about things like that go home and read cheap romance novels. (My wife reads them too, so nobody get all mad at me if you like those books.)

danimal
danimal
8 years ago

.357mag from a pistol…mmm maybe but I don’t pistol hunt so I don’t know but a .357mag rifle SURE! Especially with a flat point bullet.

Family took deer way back with a .32-20 so I never understand people objecting to smaller than “insert magnum of the year”

Dave
Dave
8 years ago
Reply to  danimal

https://www.youtube.com/watch?v=jJ3XwizTqDw Just a cool guy (I’ve shot matches with him) making a cool shot with a handgun.

Another pistol/rifle cartridge that should not be overlooked for hand loaders with modern firearms, .45LC.

Dave
Dave
8 years ago

A Roth IRA always always always (almost.) The beauty of the Roth is that you are taxed up front and not taxed on the gains. The selling point for the traditional is that you are taxed on it after retirement as you draw it out while you are (probably) in a lower tax bracket. There is a floating line as you approach retirement where the advantage of the Roth dwindles because of the lower potential gains due to the lower time for those gains to accrue. I’ll save Jack a reply here, “at this point you should not still be putting that new money at risk in the markets for such little potential gain”

A reason that a traditional CAN be an advantage:
There are some limited instances where a traditional IRA / 401K can be rolled over into a Roth. If you have bought into a traditional while the market is up you are not taxed on your contributions at that time. If you roll that account into a Roth while the market is down you are taxed on the value of the account at the time of the rollover. When I did this during the last (correction) I was taxed on roughly .50 on the dollar. To do this you MUST HAVE THE CASH TO PAY THE TAX FOR THIS TAXABLE EVENT ON THAT TAX YEAR.

Dave
Dave
8 years ago

Nothing like good friends spending time together over a gut pile. Congrats

Suzanne Traskos
Suzanne Traskos
8 years ago

After years of going for walks in my neighborhood, I smile and wave at all my neighbors at some point and they do the same thing back. I may not know all their names and email addresses but wouldn’t hesitate for a second to knock on their door for anything and be very comfortable doing so.

Dan
Dan
8 years ago

Uses for coat hangers ,Duluth trading sells a jig to bend coat hanger into useful shapes for the shop and homestead.

Tim_RVA
Tim_RVA
8 years ago

Cut coat hangers to make lawn/garden stakes

Mark Welch
Mark Welch
8 years ago

Jack,

Thanks for reading my email on the show “A new, simple, cool, easy way to meet the new neighbors”. I sent it to a Realtor friend. He is adding it to his customer’s packet and is passing it on to everyone he can. I feel like I got some good shit done this year 🙂

PaCoTx
PaCoTx
8 years ago

Just cut up a bunch of coat hangers into custom length staples to anchor our Christmas angel lawn ornament after the latest cold front blew through. Came here to post this “new idea” and saw two people had already posted to use them as landscape fabric anchors. Great minds think alike. Merry Christmas.