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 🙂

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

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.

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.

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.

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.

Cut coat hangers to make lawn/garden stakes