(Thank you Professor Kamerschen)
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 beer in the bar every day and seemed quite happy with the arrangement, until one day, the bar 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 just cost $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 everbody’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.
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 $50 instead of $59 (15% savings).
Each of the six was better off than before. And, the first four continued to drink for free. But, once outside the bar, 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 $9!”
“Yeah, that’s right,” exclaimed the fifth man. “I only saved a dollar, too. It’s unfair that he got nine times more than I!”
“That’s true!!” shouted the seventh man. “Why should he get $9 back when I got only $2? 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 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
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Mark Levin Gives Unvarnished Truth
MARK LEVIN: We conservatives, we do not accept bipartisanship in the pursuit of tyranny. Period. We will not negotiate the terms of our economic and political servitude. Period. We will not abandon our child to a dark and bleak future. We will not accept a fate that is alien to the legacy we inherited from every single future generation in this country. We will not accept social engineering by politicians and bureaucrats who treat us like lab rats, rather than self-sufficient human beings. There are those in this country who choose tyranny over liberty. They do not speak for us, 57 million of us who voted against this yesterday, and they do not get to dictate to us under our Constitution.
We are the alternative. We will resist. We're not going to surrender to this. We will not be passive, we will not be compliant in our demise. We're not good losers, you better believe we're sore losers! A good loser is a loser forever. Now I hear we're called 'purists.' Conservatives are called purists. The very people who keep nominating moderates, now call us purists the way the left calls us purists. Yeah, things like liberty, and property rights, individual sovereignty, and the Constitution, and capitalism. We're purists now. And we have to hear this crap from conservatives, or pseudo-conservatives, Republicans."It always amazes me the sheer number of women who defend abortion. Legal abortion has killed 52 million innocents since '73, that means 26 million roughly, were women. Sick." -Jen KuznickiAny woman who understands the problems of running a home will be nearer to understanding the problems of running a country. -Margaret ThatcherEntrepreneurs and their small enterprises are responsible for almost all the economic growth in the United States. -Ronald ReaganI am extraordinarily patient, provided I get my own way in the end. -Margaret ThatcherBroadly speaking, the short words are the best, and the old words best of all. -Winston ChurchillCriticism may not be agreeable, but it is necessary. It fulfils the same function as pain in the human body. It calls attention to an unhealthy state of things. -Winston Churchill
I Don’t Deny Global Warming ExistsI don't deny that global warming exists. It does not exist. There is not a pink elephant in my kitchen. I'm not denying it. It is not there. If I denied that there was a pink elephant in my kitchen, it would have to be there, but I would be lying to myself and everyone and walk around it to cook. But it is not there, therefore, I am not denying that it is.
Snyder said Wednesday that he unconditionally supports expanding the state's Medicaid rolls by roughly 470,000 people. There are 1.9 million people receiving benefits now.
"We're all here to support expanding Medicaid," Snyder said at a news conference called by a large coalition of groups that support the expansion. "We're moving forward with care for people who need it."
The ever-illogical argument that insuring more people will actually cost less. "But health care providers and advocates for the uninsured argue that the state will actually save money -- as much as $1 billion in the first decade -- if fewer residents have to rely on expensive emergency room facilities to address non-life-threatening illnesses and injuries."
Susan Dumass is really quite pedestrian. "The only thing standing in between 450,000 low-income Michiganders and health insurance is Tea Party Republicans' deep-seated hatred of Obamacare."
This week, Michigan’s Rick Snyder became the sixth GOP governor to propose expanding his state’s health insurance program to cover more low-income residents, in line with the Democratic administration’s strong recommendation.
Now that he's made the decision, Snyder must sell the plan to the state legislature, where some members of his own party have repeatedly attempted to distance themselves from the faintest whiff of "Obamacare."
- I can find neither solace or comfort in government. I cannot find hope nor light among those pretending to take my best interest to heart. I cannot worship or revere another human being because there are none alive that can instill my faith. Give me the One God; the One Who had created the heavens and earth and had purposefully breathed life into me. The One Who dwells in the secret place and watches over me and always keeps me company when all others abandoned me. But for Him I would have no purpose in this life; thank you Dear God.