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Thread: An educational "class envy" tax class.

  1. #1
    Senior Member Uncle Bill's Avatar
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    Default An educational "class envy" tax class.

    This has been placed on RTF before, but with the ever demanding need for 'rote' training among more than the dogs, here's an illustration that one would think shouldn't need repitition. But for those that didn't grasp the 'point' the first time, read on...and good luck.

    UB








    Bar Stool Economics



    Suppose that every day, ten men go out for beer and
    the bill for all ten comes to $100 and 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." so 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, 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.




    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.











































    [/font]
    When the one you love becomes a memory, that memory becomes a treasure.

  2. #2
    Senior Member road kill's Avatar
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    Yeah, but...........

    RK
    Stan b & Elvis

  3. #3
    Senior Member menmon's Avatar
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    Problem with you beer analogy is that the people getting the free beer, can't afford to drink beer unless someone else is buying and since they are prohibited by financial circumstances from drinking beer, why should they contribute to the financially sound beer drinker drinking?

    Kind of like the guy who never leaves his home town and only drives to work on one road, has his own water well, septic system and never gets on an airplane, grows his own food and makes his own clothes so he never needs anything the government provides except that one road to work. Should he pay as much as the guy that is in and out of every airport, drives daily on every interstate highway and shop refusely on the internet that is shipping him consumables daily and his company benefits from the various credits given by the government and yes he sends his kids to federal parks for summer vacation.

    Do I need to go on about this or do you get it.

  4. #4
    Senior Member Uncle Bill's Avatar
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    Quote Originally Posted by sambo View Post
    Problem with you beer analogy is that the people getting the free beer, can't afford to drink beer unless someone else is buying and since they are prohibited by financial circumstances from drinking beer, why should they contribute to the financially sound beer drinker drinking?

    Kind of like the guy who never leaves his home town and only drives to work on one road, has his own water well, septic system and never gets on an airplane, grows his own food and makes his own clothes so he never needs anything the government provides except that one road to work. Should he pay as much as the guy that is in and out of every airport, drives daily on every interstate highway and shop refusely on the internet that is shipping him consumables daily and his company benefits from the various credits given by the government and yes he sends his kids to federal parks for summer vacation.

    Do I need to go on about this or do you get it.

    I take it all back. You couldn't possibly be an "Oracle" of any type...IHOP or otherwise. You are a blithering knucklehead.

    But then, the last line was explicitly meant for the likes of you.


    For those who do not understand, no explanation is possible.



    UB
    When the one you love becomes a memory, that memory becomes a treasure.

  5. #5
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    ahh yes; the poor little rich boy getting beat up by the unwashed masses.....

    why, i imagine Warren Buffet cries himself to sleep every night. Bill Gates, too. and Lester Crown Jr. and ......ad infinitum.

    they're all being taxed right out of existence.

    and don't get me started on the poor, long suffering corporations.-Paul
    there's no good reason to fatten up a retriever.

  6. #6
    Senior Member menmon's Avatar
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    Quote Originally Posted by Uncle Bill View Post
    I take it all back. You couldn't possibly be an "Oracle" of any type...IHOP or otherwise. You are a blithering knucklehead.

    But then, the last line was explicitly meant for the likes of you.


    For those who do not understand, no explanation is possible.



    UB
    Maybe, but you want the poor to subsidize your existance. At least I'm ok paying my on way.

  7. #7
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    Quote Originally Posted by sambo View Post
    Maybe, but you want the poor to subsidize your existance. At least I'm ok paying my on way.
    no, he doesn't. Uncle Bill burns his social security check every month. he doesn't believe in it.
    it is socialistic and he will have none of it.-Paul
    there's no good reason to fatten up a retriever.

  8. #8
    Senior Member Uncle Bill's Avatar
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    Quote Originally Posted by paul young View Post
    no, he doesn't. Uncle Bill burns his social security check every month. he doesn't believe in it.
    it is socialistic and he will have none of it.-Paul

    I would never expect you to comprehend...way over your head. Just the way the unions want you to be. They'll take care of you paul, so stop taking what happens to me so seriously.

    UB




    For those who do not understand, no explanation is possible.
    When the one you love becomes a memory, that memory becomes a treasure.

  9. #9
    Senior Member Jason Glavich's Avatar
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    Quote Originally Posted by sambo View Post
    Problem with you beer analogy is that the people getting the free beer, can't afford to drink beer unless someone else is buying and since they are prohibited by financial circumstances from drinking beer, why should they contribute to the financially sound beer drinker drinking?

    Kind of like the guy who never leaves his home town and only drives to work on one road, has his own water well, septic system and never gets on an airplane, grows his own food and makes his own clothes so he never needs anything the government provides except that one road to work. Should he pay as much as the guy that is in and out of every airport, drives daily on every interstate highway and shop refusely on the internet that is shipping him consumables daily and his company benefits from the various credits given by the government and yes he sends his kids to federal parks for summer vacation.

    Do I need to go on about this or do you get it.
    Ok so the beer drinker can't afford to drink beer? Everyone can afford to drink it, the question is can they BUY the beer. UB post showed they could only drink it if other people paid for it, sounds like a few programs we have around here.

    As for your question about the "self made man" and the one depending on the government, I have a question. Does the guy who makes all his own stuff make his own fuel for his vehicle? A large percentage of roads are paid for by taxes on fuel, and other vehicle related taxes, not so much just the income tax. Also does he own the company he works for? You said his company benefits from credits given by the government, so what credits don't you like? That is really funny you don't like business credits but you are ok with paying your way as you said it. Most of us who pay our own way also pay for alot of other people to sit on welfare, etc...

    Also if you are against credits do you write off anything at tax time?
    My Father,My Friend,My teacher,and now My Angel~ 04/21/1956-03/21/2011 You will always be missed. I hope to learn half of the stuff you knew.

    ~Blessed are those who mourn for they shall be comforted~

  10. #10
    Senior Member Steve Hester's Avatar
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    For those who do not understand, no explanation is possible.[/quote]

    Truer words were never said!!
    "A government big enough to give you everything you want, is big enough to take away everything you have." - Thomas Jefferson

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