Wednesday, July 22, 2009

Teabaggers Branch Out to Lemonade Stands

Here's a roadside "Obama Wealth Redistribution Lemonade Stand" (link from a redlit Fark thread) on the route of the RAGBRAI cross-Iowa bike ride:

It's even spelled correctly and everything

Here's the price list (Hey, look, a valid use for a table):

$0 to $25K$0.25
$25K to $75K$0.50
$75K to $250K$1
Precious, right?

Now, I was wondering what kind of tax rates this pricing scheme actually uses. Since it's a lemonade stand, I'll just use a progressive sales tax, so I don't have to muck around with marginal tax rates and all that. I hope someone else gives it a shot (I've probably already screwed up the math here.)

If the after-tax price at the lowest bracket is 25 cents, let's make the pre-tax price 24 cents, for a nice, easy 1 cent tax, or 4% sales tax. Then, we'll add the other tax brackets:

IncomeTotal Price
Sales Tax PaidSales Tax Rate
$0 to $25K$0.25$0.014%
$25K to $75K$0.50$0.26108%
$75K to $250K$1.00$0.76317%
Wow, a top tax rate of nearly 2000%! What an insightful satire on the redistribution of wealth and creeping socialism. No wonder you got a mention on Hannity!

I respect smart anti-tax arguments. This is not one of them.

1 comment:

Regan said...

What's great to me is that if you go to some kid's lemonade stand and you make 250K a year, and you don't leave the kid some sort of bill, there's something wrong with you. IMNSHO.