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Obama's Proposed Tax System Explained Clearly

Discussion in 'Uncategorized Threads' started by Jim R, Oct 22, 2008.

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  1. Jim R

    Jim R Ljutic Nut TS Supporters

    Jan 29, 1998
    Western Washington
    Obama's Proposed Tax System Explained Clearly: Bar Stool Economics

    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

    But what about the other six men - the paying customers? How could
    they divide the $20 windfall so that everyone would get his 'fair

    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 got' '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.
  2. djpk69

    djpk69 TS Member

    Jan 29, 1998
    IF it comes to fruition.......explain it again in 2 years.Proposed and FACT are 2 different things.
  3. Shooting Coach

    Shooting Coach Well-Known Member

    Sep 14, 2006
    Nashville Tn
    So easy a Democrat can understand.
  4. AJ100

    AJ100 TS Member

    Sep 6, 2006
    Coach, now THAT'S funny.

    Jim, thanks, they won't get it.

  5. foghorn220

    foghorn220 Active Member

    Jan 29, 1998
    Wondered who paid for miss Obama's Lobster's

    <a href="http://smg.photobucket.com/albums/v294/foghorn220/politics/?action=view&current=obamafeedbill2.jpg" target="_blank">[​IMG]</a>

  6. Shooting Coach

    Shooting Coach Well-Known Member

    Sep 14, 2006
    Nashville Tn

    Does the Obama household (still) have substance issues?
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