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Democrat math does not compute.

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Democrat math does not compute. Empty Democrat math does not compute.

Post by Ich bin Ala-awkbarph Sun Feb 24, 2008 12:55 am

With both Hillary and Obama promising billions in freebies, who’s going to pay after they kill the Goose that lays the Golden Eggs?

Suppose that every day, ten men go out for beer and the bill for all ten is $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, 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
Ich bin Ala-awkbarph
Ich bin Ala-awkbarph

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Post by SheikBen Sun Feb 24, 2008 5:58 am

Hi Armon,

This is something that I noticed personally when the Bush tax cuts came through. My wife and I were kind of like the 6th man in the anecdote, and now that she doesn't work and we have children we're like the 5th. I think my family's total income tax bill for the entire year will be less than 500 dollars. Based on my current salary, for 2008 I will not be paying a dime.

So, over the course of the past 8 years, my taxes have absolutely plummeted. Even with both of us working our tax bill had dropped 25% before kids and an additional 50% after having two. With Katie not working as I've mentioned our taxes are all but gone.

I have tried telling liberals that the Bush tax cuts helped my family greatly and we've never, as a family, made much money at all, and yet the Bush tax cuts have pretty much eliminated my tax. As such, why should people like me care if the "rich" are getting most of the tax cuts? For one, relative to their tax bill (as Kamerschen demonstrates) it's not as big of a cut as my nearly 90% one since 2001, soon to be 100%. I think that liberals don't get it because their first concern is the government and their second concern is individual welfare. My individual case may bless my family (and I'm sure there were thousands more like me), but it didn't bloat any budgets or firm up any dollars for AFSCME or create government jobs. So they'll go on telling me about tax cuts for the rich and they'll never mention tax elimination for clan Sheik who is blessed to be able to have a mother at home and shares a small car.

When was my last tax increase? I believe it was a payroll tax increase in the Clinton years, when I was a starving graduate student. Tell me again about tax cuts for the rich?

SheikBen
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Post by ziggy Sun Feb 24, 2008 9:16 am

Armon Ayers wrote: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.

More and mnore people are drinking more and more beer every year. So what's the problem?

The tenth man didn't quit drinking beer. He just changed to a more expensive brand. So what's the problem?

His former drinking buddies didn't stop drinking beer. They just changed to a cheaper brand. So what's the problem?

In fact, they might start drinking overseas where the atmosphere is somewhat friendlier.

Good riddance. I didn't really like drinking with the s.o.b. anyway. And his jokes were lousy too. I only laughed at 'em so he'd keep buyin' that beer. Razz Razz Razz
ziggy
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Post by Aaron Sun Feb 24, 2008 11:02 am

His former drinking buddies should have kept the bill as low as possible and been drinking the cheap beer all along.
Aaron
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Post by ziggy Sun Feb 24, 2008 11:25 am

Aaron wrote:His former drinking buddies should have kept the bill as low as possible and been drinking the cheap beer all along.

Well said, Aaron.

You and I might agree on more than we like to pretend sometimes.
ziggy
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Post by Aaron Sun Feb 24, 2008 11:49 am

Geeze louise man, you don't have to go telling everyone... Rolling Eyes
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Post by SamCogar Mon Feb 25, 2008 5:46 am

ziggy wrote:
Aaron wrote:His former drinking buddies should have kept the bill as low as possible and been drinking the cheap beer all along.

Well said, Aaron.

You and I might agree on more than we like to pretend sometimes.

Agree on what?

Agree on what you "pretended" there above, ......... or what you actually think n' believe, .... to wit:

ziggy wrote:Good riddance. I didn't really like drinking with the s.o.b. anyway. And his jokes were lousy too. I only laughed at 'em so he'd keep buyin' that beer. Razz Razz Razz

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