Money flow chart
You spend 1 dollar at the store and if you only pay 10% sales tax with no
other hidden taxes the store keeps 90 cents and the government takes 10 cents.
Two weeks later the store pays an employee, with the employer paying matching
social security tax and what comes out of the paycheck, we will say a total of 25%.
The original dollar is now 67 cents and the government has the rest, 90 minus 25%.
The employee now spends the 67 cents and the store keeps 60 cents, 67 minus 10%.
Two weeks later it's payday and 45 cents is left, 60 minus 25%.
An employee now spends the 45 cents and the store keeps 40 cents, 45 minus 10%.
Two weeks later it's payday and 30 cents is left, 40 minus 25%.
An employee now spends the 30 cents and the store keeps 27 cents, 30 minus 10%.
Two weeks later it's payday and 20 cents is left, 27 minus 25%.
An employee now spends the 20 cents and the store keeps 18 cents, 20 minus 10%.
Two weeks later it's payday and 13 cents is left, 18 minus 25%.
An employee now spends the 13 cents and the store keeps 12 cents, 13 minus 10%.
Two weeks later it's payday and 9 cents is left, 12 minus 25%.
Twelve weeks or three months and the government has over 90% of the original dollar.
With the 9 cents that is left you can now pay your 200 dollar parking ticket.
