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Hello, ladies and gentlemen and welcome to professor Ikari's Macro economics class. I have finished the initial theory of my theory of governmental economics. Lets get started shall we?

First we start by defining the variables we will be using

W= An individual households yearly income
C= Total Taxable Corporate Profits
G= Total Government Expenditure
K= Break-line income of the top 50% of wealth
A=average Household income
N=number of households
T= total taxes paid by individual household
P= Percent of W paid
R= Co-efficient of economic restitution
E= Co-efficient of Government expenditure precentile
Y= corporate Tax rate.

We now state the continuous Tax Code Equation

T=W*P=W*((W*E)/(R*A))

Here we can clearly see that once an individual makes a certain number of times the average income, they will be paying the coefficient of government expenditure, E.

Now, we start by finding the unknown co-efficients.



We now find R. This is a bit more complicated as it is as variable as we want, which is why we choose K as it is, more on this later. For no we can find R by setting K equal to W. That is,



We now set this percent equal to E, to solve for a fair tax that will never have any individual paying more than E if they are under the top 50% of wealth controllers.

Dividing by E yeilds,

Solving for R we find,



now remember where we said that the definition of K was important, well here is where this comes in. We know that K is the wage earned by the least wealthy earner who controls that part of the top 50%, and we know that A is the average houshold income. What this means is that when R=1 The top half of the controlled wealth is in the hands of the top 50% of housholds. That is K=A, means that every houshold earns the same income. And while this is not necessarily a good thing in and of itself it shows what R really is, and that is an indication of the distribution of wealth, basically a middle line indicator. and when R goes up, wealth distribution gets more distributed to the wealthy, and when it goes down it gets more distributed to the lower class. Another effect of R, is that when R=1, That is to say that, K=A, and W=k, that EVERYONE will pay P=E as their percentage.

Now we move on to actually balancing the budget.

we know that the corporate tax revenue is easy to find as C*Y. However the total tax revenue is a bit more complicated. We must here make a decision, what is a fair tax. Well IMO, p=E is the maximum fair tax on an individual human, but due to the equation, the lower wage, that is when K=/=A, those who own the lower 50% will not being paying a total of E as the total bracket percent. This revenue can be found however as,



Where is the number of people who have wage W

The revenue for the upper half is more easily found with a single Tax percentage as,



Corporate revenue is easier still as



Settin these equal to G to find a balanced budget we find that,



with a little knowledge of math we can turn the sum into an integral to yield,

What the hell am I reading?

o_O I think I have just been intellectually raped

yeah...

I got the maths but I'm confused as to why you are saying this here?

I was posting it on another forum and the images didn't want to show up. I was checking the img links.

God, that tinyMCE interface is amazing. CodeCogs is pretty awesome. There's something awry with the gif encoding though. They're painful as hell to read on a non-white background.


Also, bringing math into OT is kind of like pointing a revolver at children.


Automatically Appended Next Post:


Not much better even in a different color. I think there's some sort of alpha blending thing being done that's not properly anti-aliasing, but I'm not sure there's much you can do about it without it getting changed on the codecogs side.

daedalus wrote:

Also, bringing math into OT is kind of like pointing a revolver at children.

Or playing Russian roulette with a semi automatic pistol.

well now that i have the image errors sorted out, what do you guys think? simple eh? at least compared to what we have now.

gendoikari87 wrote:well now that i have the image errors sorted out, what do you guys think? simple eh? at least compared to what we have now.

Not really. The problem isn't a shortage of maths formulas allowing economists in the White House knowing what the tax rate needs to be, given a level of government expenditure. The issue is that it's politcally very hard to actually take that much money off of people, and the alternative is to cut spending, which is also very hard to do in any meaningful amount.

I mean, anyone can balance the budget, they could do it tomorrow and likely be very happy with what they've cut and what tax level they've set. The issue is that everyone would do it in a different way, and that makes political consensus very difficult.

I remember this stuff unfortunately. I remember learning it, not how to do it.

Economics was a very boring class for me.

I are math not so grate... me am no smart... moar piks?

Hey you put letters in your maths, you should get that fixed.

I'm a physics major, MOST of the math i do i letters.

Everyone knows letters, Greek or otherwise, are a poor subsitiute for numbers. A real mathophile wouldn't sully his equations with such base symbols!

Real mathophiles use NO numbers, they use constants and variables.

Constants and variables hah! Finding x, y, or z is for chumps.

This is why you don't copy paste wikipedia articles when they use PNGs for mathematical formulae.