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Pete, as an economics analyst, what do you think?

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D. Slam

D. Slam

Suppose that every day, ten men go out for beer and the bill for all ten comes to $100. If they paid their bill the way we pay our taxes, it would go something like this:


The first four men (the poorest) would pay nothing.
The fifth would pay $1.
The sixth would pay $3.
The seventh would pay $7.
The eighth would pay $12.
The ninth would pay $18.
The tenth man (the richest) would pay $59.


So, that's what they decided to do. The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve. "Since you are all such good customers," he said, "I'm going to reduce the cost of your
daily beer by $20." Drinks for the ten now cost just $80. The group still
wanted to pay their bill the way we pay our taxes so:


The first four men were unaffected. They would still drink for free.


But what about the other six men - the paying customers? How could they divide the $20 windfall so that everyone would get his 'fair share'? They realized that $20 divided by
six is $3.33. But if they subtracted that from everybody's share:


The fifth man and the sixth man would each end up being paid to drink his beer.

So, the bar owner suggested that it would be fair to reduce each man's bill
by roughly the same amount, and he proceeded to work out the amounts each
should pay. And so:


The fifth man, like the first four, now paid nothing (100% savings).
The sixth now paid $2 instead of $3 (33%savings).
The seventh now pay $5 instead of $7 (28%savings).
The eighth now paid $9 instead of $12 (25% savings).
The ninth now paid $14 instead of $18 (22% savings).
The tenth now paid $49 instead of $59 (16% savings).


Each of the six was better off than before. And the first four continued to drink for
free. But once outside the restaurant, the men began to compare their
savings. "I only got a dollar out of the $20," declared the sixth man. He
pointed to the tenth man, "but he got $10!"

"Yeah, that's right," exclaimed
the fifth man. "I only saved a dollar, too." "It's unfair that he got ten
times more than I!" "That's true!!" shouted the seventh man. "Why should he
get $10 back when I got only two?"

"The wealthy get all the breaks!" "Wait a
minute," yelled the first four men in unison. "We didn't get anything at
all. The system exploits the poor!"

The nine men surrounded the tenth and
beat him up.

The next night the tenth man didn't show up for drinks, so the nine sat down and had beers without him. But when it came time to pay the
bill, they discovered something important. They didn't have enough money
between all of them for even half of the bill!

And that, ladies and gentlemen, journalists and college professors, is how our tax system works.
The people who pay the highest taxes get the most benefit from a tax
reduction. Tax them too much, attack them for being wealthy, and they just
may not show up anymore.

In fact, they might start drinking overseas where
the atmosphere is somewhat friendlier. For those who understand, no explanation
is needed. For those who do not understand, no explanation is possible.


David R. Kamerschen, Ph.D.
Professor of Economics
University of Georgia

Admin (Pete)

Admin (Pete)
Admin

lol!


_________________
Pete

To the father of us, all - Billy Cobham!
https://bcwtj.forumotion.com

D. Slam

D. Slam

Actually, that was a serious question, Pete. I was curious to know just how accurate the analogy was.

Admin (Pete)

Admin (Pete)
Admin

In which case, Don, the logic is consistent.

Some people think that the compulsory tax
is a suppressive system and in almost every
case, it breeds a resentment, which, even
if not visible at the start, grows covertly.

I, myself, think it best to have a flat rate.

I have been poor and feel that the motive
to become more self-sufficient was a part
of my journey but also, I think that it was
an important thing for me to understand
that this is an ongoing battle. One is what
he is, at the time, with the choice of being
there or somewhere else.

I choose to be self-sufficient and will do
what it takes to remain so.

So, I guess I won't be getting any free
drinks, tonight.

What a Face


_________________
Pete

To the father of us, all - Billy Cobham!
https://bcwtj.forumotion.com

D. Slam

D. Slam

Yeah, I always khew you were loaded.... You money bag, you! pirat

Admin (Pete)

Admin (Pete)
Admin

Oh, contrare! lol

I said I won't be getting any
free drinks because I want to
work for mine!!

I am still poor!!

;-)


_________________
Pete

To the father of us, all - Billy Cobham!
https://bcwtj.forumotion.com

D. Slam

D. Slam

Ahhh, don't worry, Donald. Your secret's safe with me. silent

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