The Story of $100

Have you ever considered where most of the money from a transaction goes?  Do you think that corporate greed runs rampant?

Lets take this hypothetical (but mathematically accurate) example:

My company pays me $100.  My income tax liability is 20%, Social Security withholds 7.282%, Medicare withholds 1.7%.  This is an aggregate of 28.982%.  This leaves me with $71 after paying the $29 in taxes.

I go shopping with the $71 and spend it all.  The sales tax rate where I am located is 8.25%.  This means I was able to spend $65.59, and paid $5.41 in taxes.

If the merchant's profit margin is 30%, they made $19.67.  Corporate profits are generally taxed at around 40% (or more).  This means that they keep $11.81 and 7.87 goes to taxes.

At this point, the government has received a grand total of $42.28 of the original $100.

Assuming that the labor costs of selling the merchandise to me are 10% of what I spent (before tax), the  company spent $6.56 in labor to order, stock, sell the merchandise to me. Their employees also have to pay income tax, Social Security, Medicare, etc.  That takes approximately 15% out of their pockets.  This leaves the employee with $5.85 and the government with another $.98.

The employee spends his/her $5.85, paying 8.25% in sales taxes.  This means they received $5.40 in merchandise and paid $.45 in taxes.

I am not even going to get into taxes paid on electricity, etc.  At this point, the government has received $43.71 of that original $100.  I don't see how companies stay in business.