Quote:
Originally Posted by Paul&John
wtf, how could any government make profit on welfare people? Let's say 1 person gets 300 dollars for free each month, he buys stuff for $300 each month (accommodation - renting a place, food, booze etc), and lets say you have like flat 20% tax on everything (goods, services etc.)... so government handed out $300 and got back $60 in taxes (so -$240 each month).. that doesn't sounds like profit to me.
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yes but those first 300$ get spent again and again and again by other people and the gov gets $60 every time....if you look at just one transaction then yes, it is a loss...