Comment by Jim

Sat, 12 Mar 2005 06:52:16 EST

Very interesting analysis.

Comment by Joel Caris

Fri, 11 Mar 2005 15:19:27 EST

Percentage points basically come into play when you're dealing with percentages of percentages. So when I say four percentage points of a 12.4 percent tax, I'm basically making that 12.4 percent into percentage points. So I'm saying 4 percentage points of 12.4 percentage points, or about one third of the total. For instance, let's say that your 12.4% payroll tax represented $3000 that you paid in those taxes. If I say you can invest four percent of that--as Sen. Hagel and the LA Times said--then that would be just $120. Not that much. The reality is that you could invest four percentage points of that 12.4% tax, rather than four percent of the total. To break it down, a percentage point of that $3000 would equal 3000/12.4, which would be just under $242. You could invest four percentage points, so 4x242, so $968. That's a big difference from $120. Hopefully that makes sense for people who are a bit confused.

Comment by Temple Stark

Fri, 11 Mar 2005 14:58:50 EST

Please explain the difference between percentage points and percent. In common parlance I don't think very many people would make a distinction. Well presented. I've got a we little post on this subject going on over at my site. I'm going to post it here soon.

Blogcritics: Comments on Battle Objective Journalism

Comment by Jim

Comment by Joel Caris

Comment by Temple Stark