The Story of How Taxes Are Paid In America
Suppose that every day, ten men go out for drinks and the bill for all ten comes to $100. If they paid their bill the way we pay our taxes, itwould 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 everyday 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 drinks 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 drink. 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 paid $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, boys and girls, journalists and college professors, is how ourtax 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.
AMEN!
Went and saw the Chihuly exhibit at the Desert Botanical Garden with a friend. Chihuly is one of my very favorite artists. In fact, one of my goals in life it own a small piece of Chihuly art -- mind you it would have to be VERY small for me to be able to afford it. The exhibit was MAGNIFICENT and I would highly recommend those who live in AZ go see it. It will be at the DBG until about March.
It's been a little while since I last posted and there's been a fair amount that has been happening. Last Saturday, I flew to Atlanta for the National Dropout Prevention Network Conference. It was my first conference in my new job. I did marketing for Pinnacle there at the conference for 3 days. It was a whole new experience, but rather reminiscent of my missionary days. I was at a booth for 2 and a half days and I had to brush-off my old tracting skills. I exercised my skills with the old "commitme
nt pattern". And what do ya know, it still works...a little BRTing and some "Will you..." questions. Very interesting.... Anyways, one BIG thing I learned, Traveling for business is NOTHING like traveling for fun. IT'S WORK! I was very tired by the time I flew home Wednesday afternoon. I didn't get to see much of Atlanta, but I did take some pictures of the fall leaves on the trees outside my hotel. In January I'll be off to Clearwater, FL and in February it will by Myrtle Beach, SC. I asked my boss when he thought we'd be heading to Maui...he gave me the get-real look.
Wednesday night some of the Schaub clan met at Polar Ice in Gilbert to do a little ice skating and celebrate Ethan's 9th birthday. None of the kids had ever tried skating before. Let's just say that it was a harsh introduction to the realities of slippery ice and small metal blades. Regardless, they all seemed to have fun. It was definitely more work for the parents than for the kids. I declared myself the "unofficial" photographer and took my pictures, with my shoes on, from the safety found behind the glass. I think the kids had enough fun, that we just might find ourselves heading back there again.
