[dellinger63]

Hypothetically Mr. Jones and Mr. Smith are neighbors and have many things in common. Both have a wife and two children, both work as Geological Surveyors, and each make 100K/year. Both also received insurance paid for by their employer.

Mr. Jones works for the Federal Government at Yellowstone monitoring and studying geysers including Old Faithful. His employer does not provide a 401K per se, but does have a pension program. Upon retirement it will pay 70% of a ‘average’ salary. His employer paid healthcare has a value of $2K/month (24K/year). He works for 30 years, retires at 65 and will die at 80. (To make the math simple no raises were considered.) $124K/year (salary and benefit’s) X 30 years comes to $3.72 million. 15 years of retirement at $70K/year comes to $1.05 million for a total of $4.77 million in total compensation. All payments made courtesy of the Taxpayers of America.

Mr. Smith works for a small Petroleum Exploration Consulting company. Its clients are 50% domestic and 50% foreign. Obviously travel is a large part of Smith’s job. Unlike Mr. Jones, Smith’s employer does not offer a pension program but does offer a 401K that it will match up to 10% of yearly salary or in the case of Smith, 10K/year. Like Jones, Smith works for his company for 30 years before retiring and living 15 more years. Recognizing the benefit of matching 401K funds his company offers, Smith never misses a year he doesn’t contribute the max but never exceeds it. Smith makes the same $3.72 million in salary and benefits as Jones. By adding 20K to his 401K every year and investing in AAA bonds (he is a Geologist) he reaps a paltry 3%/year and at the time of retirement has $951K in his account. All paid for by his employer/clients of employer including 50% foreign. A $4.671 million total compensation package of which, $2.33 million can be attributed to foreign investment. Mr. Smith’s company also pays a payroll tax at 8K/year over the course of his 30-year career, a $240K total.

In an effort to remain unbiased (wink) the above scenario does not take into account business expenses, such as travel and lodging that of course adds to the economy but for Mr. Jones would be paid for by the taxpayer and for Mr. Smith by his employer. Nor does it take into account the corporate taxes paid by Smith’s employer. Of course Jones’ employer pays nothing in taxes.

Since one percent seems to be the number in vogue, I’ll use that for a sample. One percent of all tax filers in America is approximately 1.49 million. Of this sample we’ll suppose half are Public sector workers and half are Private. The half representing the 745K Public Workers with total average compensation of $4.77 million each, comes to a $3.56 Trillion total. The Private Workers with an average of $4.67 million each comes to $3.48 Trillion with $1.74 Trillion coming from foreign investment. The Private sector employers collectively would have also paid a total of just under $179 billion in Payroll Tax.

So while in equal numbers, representing only one half of one percent of U.S. Taxpayers, the Public Sector Jobs sample cost the American taxpayer $3.56 Trillion while Private Sector Jobs crew cost the taxpayer zero. To the contrary, Private Sector jobs actually add $1.74 Trillion in foreign, or competitor money to the economy and $179 billion in employer paid payroll tax for a total of $1.919 Trillion Total Net Gain to the taxpayer. A $5.479 Trillion dollar difference compared to Public Jobs. $7,350,000.00 or $7.35 million PER JOB. That number would be substantially larger if both corporate tax and capital gains tax on 401K withdrawals were considered.

BTW Wanting to keep up with the Jones’, Smith continued his ultra conservative portfolio producing 3%/year after he retired but started withdrawing funds to equal the $70K Jones received yearly. His first year’s withdrawal was for just over 41K and at the time of his death his 401K still contained $185K.

Hope this explains it for you......