Saturday, December 13, 2008

Beat up the rich at your own peril

Beat up the rich at your own peril!!!

Let's put tax cuts in terms everyone can understand.

Suppose that every day, ten men go out for dinner. 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 $7, the eighth $12, the ninth $18, and the tenth man — the richest — would pay $59.

That's what they decided to do. The ten men ate dinner in the restaurant every day and seemed quite happy with the arrangement — until one day, the owner threw them a curve (in tax language a tax cut).

"Since you are all such good customers," he said, "I'm going to reduce the cost of your daily meal by $20." So now dinner for the ten only cost $80.00.

The group still wanted to pay their bill the way we pay our taxes. Therefore, the first four men were unaffected. They would still eat for free. But what about the other six, the paying customers? How could they divvy up the $20 windfall so that everyone would get his "fair share?"

The six men 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 end up being PAID to eat their meal. So the restaurant 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.

So, the fifth man paid nothing, the sixth pitched in $2, the seventh paid $5, the eighth paid $9, the ninth paid $12, leaving the tenth man with a bill of $52 instead of his earlier $59. Each of the six was better off than before. Moreover, the first four continued to eat for free.

However, once outside the restaurant, the men began to compare their savings. "I only got a dollar out of the $20," declared the sixth man who pointed to the tenth. "But he got $7!"

"Yeah, that's right," exclaimed the fifth man, "I only saved a dollar, too! It's unfair that he got seven times more than me!"

"That's true!" shouted the seventh man, "why should he get $7 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 he didn't show up for dinner, so the nine sat down and ate without him. Nevertheless, when it came time to pay the bill, they discovered, a little late what was very important. They were FIFTY-TWO DOLLARS short of paying the bill!

3 comments:

Anonymous said...

Thanks for sharing this classic illustration. It should be must reading for liberals, who consider it "charity" to take other people's money at the point of a gun (i.e., taxes) and redistribute it to their pet people or projects.

Our economic system is so great that it has withstood their perversions of it for a long time, but there are limits.

Ted said...

The consequences of the Supreme Court declining to address the US Constitution’s “natural born citizen” clause on the morning of Monday 12/15/08 — thereafter enabling the College of Electors to transform the crisis from “law” to “political and Congressional”, leading to the ‘inauguration’ of Mr. Obama, are nothing less than catastrophic. Lawsuits by members of the military challenging his ‘commander in chief’ status are INEVITABLE. And a military takeover to oust the “usurper” may be inevitable as well. Where is the media? This is no “tin foil hat” joke.

PorkyRay said...

Ted,

You might like to read these entries:

Why is the media silent...
Obama Birth Certificate Petition
Is Senator Obama a Natural Born Citizen?
Gun sales soar with Obama election
Now, they come crawling out of the woodwork
Obama, the best president money can buy!

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