There is a simple formula based upon 30%. If a business cannot sustain a 30% profit from all the goods and or services he provides he is not long for the business world.....the inverted formula should apply to the average working person's debt to income ratio....one should never be indebted by more than 30% of one's total income. Supposedly if one saves 10% (pays himself) 10 cents for every net dollar earned he should have no problem in paying off his debt in totality after a few years of saving (if and when there arose a need or requirement to be debt free).
The same formula for personal savings should apply to any business....one should save 10% of all profit and count it as a personal income.
That's why so many "small businesses" fail each year. If one looks simply at the gross income of any business you would assume that a small business making in access of 3 figures should be solvent...but such is never the case, there are so many variable costs that goes into running a successful business. Number of employees, taxes, overhead like utilities that must be used, transportation costs (shipping) etc.,
If a single owner business takes in about 120K per year...the bottom line would indicate that he/she would be better off simply working for someone else if all one can actually earn after all expenses is less than 30% of the gross.
Now take a look at how "UNCLE SAM" manages the people's wealth....as in reality Uncle Sam Earns NOTHING....every penny that is in the coffers of any government must come from THE PEOPLE the government represents. If UNCLE SAM was a business...he would have been jailed decades ago for the same practices that the management of Enron and Bernie Madoff went to prison for using.
The problem being its a most difficult thing to charge someone with "cooking the books" when the only ones allowed to audit the business are the business managers.
Why is the US 20 trillion in debt? Is it because of a lack of PROFIT (collected taxes)? Hardly. The government entities of the US take is almost 8 trillion dollars annually (a very good debt to income ratio)
....yet they can only pay the interest on the accumulated DEBT? Really? What's wrong with this picture? Where is the documented money going? Its going down the proverbial shitter due to mismanagement and the cooking of the books.
CONCLUSION: The United States of America does not have a "tax problem" (as in not having enough tax collected per capita).....the United States of America has a very serious "management problem".....in the wasteful spending of the citizens wealth for the simple reason of not attempting to make the lives of American Citizens better, safe and secure but to purchase enough votes to keep the "career politicians" a place at the HOG TROUGH that is Washington DC.
Common sense would allow anyone with the least amount of critical reasoning abilities to conclude that no LAWYER (as the majority of politicians have direct ties to the US LEGAL SYSTEM) would give up a private practice with the built in potential to make hundreds of thousands in income.....to work as a supposed servant of the people at a fraction of an "honest" wage.
There must be life time "term limits" placed upon all politicians who would engage in the business of representing the people. There should be a constant turn over of NEW FACES every few years...then and only then would the natural human instinct of creed and corruption be curbed and allow the government to function as it was designed to function....in the BEST INTEREST OF THE PEOPLE...et al.,
