[wdmmg-discuss] How to calculate tax freedom day?
Peio Popov
peio at peio.org
Thu Aug 25 11:31:08 UTC 2011
Dear list,
I am thinking of creating a visualisation on tax freedom day (a.k.a.
freedom from government day or daily bread on wdmmg site) and I would like
to ask which is the correct way to create such a calculation?
Several questions come to mind:
1. What method should be used? I've seen of two different approaches:
The first method takes the ratio of GDP to Expenditure part of the budget to
determine how many days from one's productivity are redistributed from the
government.
The second method assumes one receives 100 units and calculates all the
direct taxes that are witheld and afterwards - the indirect payments due if
all the income is spend.
Calculations using both methods can be made very complicated if they have to
be tailored for specific income. Questions regarding the source (salary,
freelance payment, divident); application of progressive tax scale (or at
least some thresholds) and the possible exempts make it near to impossible
for a correct calculation. What is the standard precision which is
considered acceptable?
2. Should the mandatory payments for health care and social security be
included?
3. Should the deficit be included?
4. How the budget income from state's own sources should be treated?
5. What is the best way to visualize it?
I am thinking about a calendar in which the working days are marked with the
corresponding icon like: these two week you will work for the military, the
next month - for social services and so on. The same may be achieved and
with a daily calendar with hours. Is there anything that can be easily used
to do it? (I am thinking that I should check google cal but haven't done it)
How it is done in WDMMG? Where is the relevant code?
Lot's of questions, some of them might be misguided or previously answered.
Please let me know.
Peio Popov
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