Research Discussion: How Out Taxsystem Works

How Out Taxsystem Works
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Hagar
2009-11-11 14:55:46 EST
Written by:
David R. Kamerschen, Ph.D.
Professor of Economics
University of Georgia

For those who understand, no explanation is needed. For Democrats no
explanation is possible.

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 on 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
bee r 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 percent, 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 n inth 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. B ut 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, Morons of the Obamacalypsa, 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.



Benj
2009-11-11 16:33:36 EST
On Nov 11, 2:55 pm, "Hagar" <ha...@sahm.name> wrote:

> "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.

Oh I've heard this before. It happened during the frightful Bushite
years when there was proposed and passed a tax break in the form of an
equal percentage cut for all taxpayers. "TAX CUT FOR THE RICH" the
democrats all screamed in unison long before the Obamite government
took over. And it seemed to make sense since those who paid the most
taxes got much more money back than those (poor) who paid little. And
they prepared to gather round the rich and beat them all up.

Of course what the Dimocrats and Obamites did not realize is that the
truly rich don't pay any taxes at all and thus weren't even part of
the argument. They just kept getting their beer for free. Those in
government just could not get their minds around the difference
between the "productive rich" and the "idle rich".




Mark Earnest
2009-11-11 17:23:14 EST

"Hagar" <hagen@sahm.name> wrote in message
news:5qidnXjoG4pei2bXnZ2dnUVZ_sydnZ2d@giganews.com...
> Written by:
> David R. Kamerschen, Ph.D.
> Professor of Economics
> University of Georgia
>
> For those who understand, no explanation is needed. For Democrats no
> explanation is possible.
>
> 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 on 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 bee r 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 percent, 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 n inth 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. B ut 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, Morons of the Obamacalypsa, 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.

Poor rich people! I feel so sorry for them, as they fly to Washington
in their tuxes with their private jets, to ask for another handout bailout.



Double-A
2009-11-11 17:34:40 EST
On Nov 11, 1:33 pm, Benj <bjac...@iwaynet.net> wrote:
> On Nov 11, 2:55 pm, "Hagar" <ha...@sahm.name> wrote:
>
> > "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.
>
> Oh I've heard this before. It happened during the frightful Bushite
> years when there was proposed and passed a tax break in the form of an
> equal percentage cut for all taxpayers. "TAX CUT FOR THE RICH" the
> democrats all screamed in unison long before the Obamite government
> took over. And it seemed to make sense since those who paid the most
> taxes got much more money back than those (poor) who paid little.  And
> they prepared to gather round the rich and beat them all up.
>
> Of course what the Dimocrats and Obamites did not realize is that the
> truly rich don't pay any taxes at all and thus weren't even part of
> the argument. They just kept getting their beer for free. Those in
> government just could not get their minds around the difference
> between the "productive rich" and the "idle rich".


That's why we need to tax their assets, not their incomes. The idle
rich can be taxed no other way!

Double-A


Hagar
2009-11-12 11:30:41 EST

"Mark Earnest" <gmearnest@yahoo.com> wrote in message
news:vKydnZN2w4THpGbXnZ2dnUVZ_hCdnZ2d@posted.internetamerica...
>
> "Hagar" <hagen@sahm.name> wrote in message
> news:5qidnXjoG4pei2bXnZ2dnUVZ_sydnZ2d@giganews.com...
>> Written by:
>> David R. Kamerschen, Ph.D.
>> Professor of Economics
>> University of Georgia
>>
>> For those who understand, no explanation is needed. For Democrats no
>> explanation is possible.
>>
>> 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 on 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 bee r 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 percent, 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 n inth 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. B ut 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, Morons of the Obamacalypsa, 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.
>
> Poor rich people! I feel so sorry for them, as they fly to Washington
> in their tuxes with their private jets, to ask for another handout
> bailout.
>
You seems to forget that the "Rich" actually had to work for that disgusting
"richness", that people like to and AA so envy. They also provide
jobs, and if either of you two had any skills, other than changing TV
channels,
you might be able to partake in them. Being rich and having earned it, in
many
cases the hard way, does entitle you to certain benefits, which then are
decried
by losers like you as undeserving "perks". And the rich, having had a taste
of
money, want more of it, just like the politicians YOU 'tards elect, over and
over
again. Use your head, why would anyone spent millions upon millions to get
a
job that pays about $180,000 a year ??? Why don't you have them disclose
how wealthy they were before they took office and compare that to how
wealthy they are 4 years after they leave office. The do amass huge amounts
while in office, but the real feeding frenzy at the corporate troughs cannot
begin
until after they are out, cashing all those vouchers they accumulated
during their
term, scamming the system of favors and rewards.

No, it is not the wealthy who are the culprits ... it is the corrupt
politicians who
write the laws that supposedly govern and control the companies and
corporations. See how Barney Frank and his cohorts manipulated Fanny
Mae and Freddy Mac, filling their coffers with obscene bonuses and perks in
secret, but publicly castigating those oh so evil corporations, with that
"wink,
wink ... just doing my elected job" to placate their benefactors.

So, quit whining, you are beginning to sound like the Liberal pussies you
are.
.



Hagar
2009-11-12 12:39:42 EST

"Double-A" <double-a3@hush.com> wrote in message
news:68c9e75f-b237-4818-8507-9bcd83616885@t2g2000yqn.googlegroups.com...
On Nov 11, 1:33 pm, Benj <bjac...@iwaynet.net> wrote:
> On Nov 11, 2:55 pm, "Hagar" <ha...@sahm.name> wrote:
>
> > "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.
>
> Oh I've heard this before. It happened during the frightful Bushite
> years when there was proposed and passed a tax break in the form of an
> equal percentage cut for all taxpayers. "TAX CUT FOR THE RICH" the
> democrats all screamed in unison long before the Obamite government
> took over. And it seemed to make sense since those who paid the most
> taxes got much more money back than those (poor) who paid little. And
> they prepared to gather round the rich and beat them all up.
>
> Of course what the Dimocrats and Obamites did not realize is that the
> truly rich don't pay any taxes at all and thus weren't even part of
> the argument. They just kept getting their beer for free. Those in
> government just could not get their minds around the difference
> between the "productive rich" and the "idle rich".


That's why we need to tax their assets, not their incomes. The idle
rich can be taxed no other way!

Double-A

*************************************
None of you doofuses however has a problem with sports figures,
who are too stupid to make change for a dollar and can't write their
names, making millions upon millions and then bragging about it
in their finest Ebonics Ghetto Slang ....



Double-A
2009-11-13 17:35:27 EST
On Nov 12, 9:39 am, "Hagar" <ha...@sahm.name> wrote:
> "Double-A" <double...@hush.com> wrote in message
>
> news:68c9e75f-b237-4818-8507-9bcd83616885@t2g2000yqn.googlegroups.com...
> On Nov 11, 1:33 pm, Benj <bjac...@iwaynet.net> wrote:
>
>
>
>
>
> > On Nov 11, 2:55 pm, "Hagar" <ha...@sahm.name> wrote:
>
> > > "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.
>
> > Oh I've heard this before. It happened during the frightful Bushite
> > years when there was proposed and passed a tax break in the form of an
> > equal percentage cut for all taxpayers. "TAX CUT FOR THE RICH" the
> > democrats all screamed in unison long before the Obamite government
> > took over. And it seemed to make sense since those who paid the most
> > taxes got much more money back than those (poor) who paid little. And
> > they prepared to gather round the rich and beat them all up.
>
> > Of course what the Dimocrats and Obamites did not realize is that the
> > truly rich don't pay any taxes at all and thus weren't even part of
> > the argument. They just kept getting their beer for free. Those in
> > government just could not get their minds around the difference
> > between the "productive rich" and the "idle rich".
>
> That's why we need to tax their assets, not their incomes.  The idle
> rich can be taxed no other way!
>
> Double-A
>
>         *************************************
> None of you doofuses however has a problem with sports figures,
> who are too stupid to make change for a dollar and can't write their
> names, making millions upon millions and then bragging about it
> in their finest Ebonics Ghetto Slang ....


They pay their taxes. You don't their smart enough to avoid them do
you?

Double-A


Double-A
2009-11-13 18:17:58 EST
On Nov 12, 8:30 am, "Hagar" <ha...@sahm.name> wrote:
> "Mark Earnest" <gmearn...@yahoo.com> wrote in message
>
> news:vKydnZN2w4THpGbXnZ2dnUVZ_hCdnZ2d@posted.internetamerica...
>
>
>
>
>
> > "Hagar" <ha...@sahm.name> wrote in message
> >news:5qidnXjoG4pei2bXnZ2dnUVZ_sydnZ2d@giganews.com...
> >> Written by:
> >> David R. Kamerschen, Ph.D.
> >> Professor of Economics
> >> University of Georgia
>
> >> For those who understand, no explanation is needed. For Democrats no
> >> explanation is possible.
>
> >> 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 on 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 bee r 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 percent, 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 n inth 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. B ut 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, Morons of the Obamacalypsa, 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.
>
> > Poor rich people!  I feel so sorry for them, as they fly to Washington
> > in their tuxes with their private jets, to ask for another handout
> > bailout.
>
> You seems to forget that the "Rich" actually had to work for that disgusting
> "richness", that people like to and AA so envy.


Not all of them. Many children and grandchildren of the super rich
receive lifetime emoluments from their families so that they won't
have to work and can spend their whole lives just partying and having
nothing but fun!


> They also provide
> jobs, and if either of you two had any skills, other than changing TV
> channels,
> you might be able to partake in them.


Classic unsubstantiated and erroneous claim.


> Being rich and having earned it, in
> many
> cases the hard way, does entitle you to certain benefits, which then are
> decried
> by losers like you as undeserving "perks".  And the rich, having had a taste
> of
> money, want more of it, just like the politicians YOU 'tards elect, over and
> over
> again.  Use your head, why would anyone spent millions upon millions to get
> a
> job that pays about $180,000 a year ??? Why don't you have them disclose
> how wealthy they were before they took office and compare that to how
> wealthy they are 4 years after they leave office.  The do amass huge amounts
> while in office, but the real feeding frenzy at the corporate troughs cannot
> begin
> until after they are out,  cashing all those vouchers they accumulated
> during their
> term, scamming the system of favors and rewards.


Yeah. Reagan got a million for one speech!


> No, it is not the wealthy who are the culprits ... it is the corrupt
> politicians who
> write the laws that supposedly govern and control the companies and
> corporations.  See how Barney Frank and his cohorts manipulated Fanny
> Mae and Freddy Mac, filling their coffers with obscene bonuses and perks in
> secret, but publicly castigating those oh so evil corporations, with that
> "wink,
> wink ... just doing my elected job" to placate their benefactors.
>
> So, quit whining, you are beginning to sound like the Liberal pussies you
> are.


I can't disagree with you about the politicians.

Double-A

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