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Thread: Understanding Taxation (or why Obama socialism doesn't work)

  1. #1

    Understanding Taxation (or why Obama socialism doesn't work)

    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, then 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, boys and girls, 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.

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

    For those who understand, no explanation is needed.

    For those who do not understand, no explanation is possible!!!
    Clear, concise, understandable.
    Experienced Community organizer. Yeah, let's choose him to run the free world. It will be historic. What could possibly go wrong...

    "You're just a jaded cynical mother****er...." Jeffpeg

    (more comments in my User Profile)
    russbo.com



  2. #2
    Interesting.

    Except in reality the richest doesnt got beat up but helped to follow the christian advice that it is hard for richmen to enter heaven.

    So in a way they re is no violence included.

    What does not stop some rich people to put their money in offshore tax paradise. Isnt it what buddhist call greed, the root of suffering?

    I dont know, you might look it in a more positive way!


    Om money pedme hung
    Namo Guan Yin Pusa / Dont create suffering / Dont harm animals!

  3. #3
    Join Date
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    This is why Doc lives in Thailand, cause he doesn't want to get beaten up. Plus he trains in Muay Thai just in case the local Phuket taxi drivers start rioting and burning Doc dolls.

  4. #4
    I'm not worried about Thai taxi drivers.

    I can handle bunches of them.

    It's the Thai whores that scare me...
    Experienced Community organizer. Yeah, let's choose him to run the free world. It will be historic. What could possibly go wrong...

    "You're just a jaded cynical mother****er...." Jeffpeg

    (more comments in my User Profile)
    russbo.com



  5. #5
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  6. #6
    Yes, the little ditty above explains the "tax breaks to the wealthy" that you see in that pdf.

    But I am far from an economist. I can't even balance my own checkbook. So I'm not one to talk about these issues.
    Experienced Community organizer. Yeah, let's choose him to run the free world. It will be historic. What could possibly go wrong...

    "You're just a jaded cynical mother****er...." Jeffpeg

    (more comments in my User Profile)
    russbo.com



  7. #7
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    buuuuuuuuuuuuuttttt, you doooooooooooooooooo =P

    *nudge*
    *nudge*

  8. #8
    jackwolf is offline Registered Member: no custom title Registered Member
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    Obama and Taxation.................

    First of all Obama is the best president we have had in the USA in many decades. Secondly you are not American so you should not be making suggestions or dumb commentaries, only the citizens of a country who have lived there and have first hand experience over a considerable period really know what is best. The Republican Presidents in this country and Clinton to some extent ruined our democracy and independence by allowing corporatiions to dictate policy or determine policy at the expense of the common working people and letting go of all regulations that were put into place after the Great Depression, and by using war as a political and economic means of propping up a system that has reached an end point because of its glorification of profit and greed above all sense of social and ethical responsibility.

  9. #9
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    corporations built america homie

  10. #10
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    Nov 2006
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    doc, you gave up your american citizenship?

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