Pay for use economics?
I was reading about how different groups pay different amounts as taxes to the state and what we get for these taxes. I decided to analyze the economics of pay for use in place of a progressive government tax system.
The top 10% of earners pay 71% of federal taxes and earn 45% of the total income (2010 census). This group's average income is approximately $180K with a average effective federal tax rate of 22% (about 30% including state and local taxes).
The bottom 50% pay 2% of the taxes and earn 12% of the income. This group's average income is approximately $35K with a average effective federal tax rate of 11%.
Using 120,000,000 tax returns (2013)
Top 10% = 12,000,000 x $180,000 = $2.16 trillion income
Taxes paid $2.16 trillion income x 30% tax rate =$648 billion by the Top 10%
Total taxes paid by all = $648 billion / 71% = $912 billion (check figure - the actual 2010 tax paid was $949 billion)
If we distribute the total taxes equally, to approximate pay for use, then:
$912 billion / 120,000,000 tax payers = $7,600 ea.
Tax brackets, effective, for 2010; actual tax paid is likely less due to deductions allowed for most tax payers.
$8000 = 10% for $800 tax paid; would pay 9.6 times the taxes as pay for use fees
$34,000 = 13.7% for $4,680 tax paid would pay 1.62 times the taxes as fees
$84,200 = 20% for $16,781 tax paid would pay 55% less in taxes as fees
$171,850 = 24.3% for $41,827 tax paid would pay 84% less in taxes as fees
If in a post state world where each of us only pays for the services and/or facilities we each use, the cost of these services would, in general, be equally born by each of us. Not based on a progressive tax that considers the ability to pay. Therefore low income individuals would not be able to afford as many pay per use services. Private companies in a future anarchist world that would provide these services would not price these based on ability to pay but on the cost plus a profit margin.
The consequence of this is that we will have access to fewer services and/or facilities than are currently provided by the government. What are these services and/or facilities? In the U.S. these include the following services provided by or significantly subsidized by the government:
Public transportation, trains, buses, subways, air travel
Healthcare & medicine
Food production and farming
Public parks & recreation
Public education, primary and secondary
Research at colleges both private and public
Public protective services, fire fighting, police, ambulance, courts
Public infrastructure, roads, streets, highways,
Public utilities, water, sewer, electricity
As anarchist we all need to understand the consequences of these economics and be prepared to be more self sufficient.