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Wednesday, April 15, 2009

BEER & TAXES (TAX DAY BLOG)

LAUGHTER IS A NATURAL REMEDY

Subject: Beer and Taxes

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 percentages as before 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!"

So, 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 among 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. They also open businesses and hire employees. Tax them too much, attack them for being wealthy, place too many restrictions and regulations on them and they just may not show up anymore. In fact, they might start drinking, opening businesses and hiring employees 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.

Father/Daughter talk

A young woman was about to finish her first year of college. Like so many others her age, she considered herself to be a very liberal Democrat, and among other liberal ideals, was very much in favor of higher taxes to support more government programs, in other words redistribution of wealth, all in the name of fairness.

She was deeply ashamed that her father was a rather staunch Republican, perhaps at times even a Libertarian, a feeling she openly expressed. Based on the lectures that she had participated in, and the occasional chat with campus professors, she felt that her father had for years harbored an evil, selfish desire to keep most of what he earned for his family and himself.

One day she was challenging her father on his opposition to higher taxes on the rich and the need for more government programs. The self-professed objectivity proclaimed by her professors had to be the truth and she indicated so to her father. He responded by asking how she was doing in school.

Taken aback, she answered rather haughtily that she had a 4.0 GPA, and let him know that it was tough to maintain, insisting that she was taking a very difficult course load and was constantly studying, which left her no time to go out and party like other people she knew. She didn't even have time for a boyfriend, and didn't really have many college friends
because she spent all her time studying.

Her father listened and then asked, "How is your friend Audrey doing?" She replied, "Audrey is barely getting by. All she takes are easy classes, she never studies, and she barely has a 2.0 GPA. She is so popular on campus; college for her is a blast. She's always invited to all the parties and lots of times she doesn't even show up for classes because she's too hung over."

Her wise father asked his daughter, "Why don't you go to the Dean's office and ask him to deduct a 1.0 off your GPA and give it to your friend who only has a 2.0. That way you will both have a 3.0 GPA and certainly that would be a fair and equal distribution of GPA."

The daughter, visibly shocked by her father's suggestion, angrily fired back, "That's a crazy idea, how would that be fair! I've worked really hard for my grades! I've invested a lot of time, and a lot of hard work! Audrey has done next to nothing toward her degree. She played while I worked my tail off!"

The father slowly smiled, winked and said gently, "Welcome to Independent Thinking."

As my Mamaw Smith, used to say, "It makes a difference whose ox is being strangled." 

You may be interested in becoming more informed about NEW WORLD ORDER (NWO), a reality that is on its way to America, at an increasingly rapid rate, if WE THE PEOPLE allow it to happen. http://www.threeworldwars.com/new-world-order.htm


Election Day should be April 15th!


THAT'S MY ARGUMENT,

T