I’m embarrassed for America…
Category: Politics
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Our Tax System
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 free.
But what about the other six men who are 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, 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.
(via Amanda)
It is funny how when your team loses you are always quick to point out all the mistakes that the referees made or what the other team did wrong. “Did you see that call? it cost us the game.” Sometimes it did, but perhaps if your team had been playing a little better then they could have overcome one bad call.
Recently I watched the recap of the Palin/Biden debate and then I went to Twitter and there was nothing but negative remarks about Palin and how she is a liar. What I find the most interesting about Democrats is that they are extremely vocal with the negative criticism. Why not focus more of that energy in proving why your candidate is the better choice and less bitching about the opposition?
I think as Americans we all know that people will say whatever they think the public wants to hear. Every president has made promises that they were later unable to keep,it didn’t mean that the time those promises weren’t heartfelt, it only means that the circumstances changed and they can’t call a press conference every time they have to go back on their word.
I watched this link on Obama’s website and I have to disagree with his comment that small businesses are the backbone of our economy. It is true that small businesses make up 95% of all businesses in the U.S. but they only generate 5% of the income. I work for a big company and I have to tell you that my pay is excellent and my benefits are outstanding. Tax breaks for corporations allow them to get started in areas and then later the community reaps the rewards from those taxes that are later incurred.
I also read on McCain’s site that he proposed limiting the gas tax from Memorial Day to Labor day. I am not sure if this is a good strategy for the economy, why not just make the tax less year round? I realize American do more driving during the summer, but this seems like one of those ideas that sounds good on the surface – like the Lottery, but in reality it is just a way for someone else to make money.
John McCain believes we should institute a summer gas tax holiday. Hard-working American families are suffering from higher gasoline prices. John McCain called on Congress to suspend the 18.4 cent federal gas tax and 24.4 cent diesel tax from Memorial Day to Labor Day.
- Reuters: Gas Tax Holiday “Of Most Immediate Effect To Consumers.” “Of most immediate effect to consumers was his appeal to the U.S. Congress to suspend the 18.4 cent federal gas tax and 24.4 cent diesel tax from Memorial Day at the end of May to Labor Day in early September.” (Steve Holland, “McCain Proposes Tax Cuts And Lashes Democrats,” Reuters, 4/15/08)
- USA Today: “A USA TODAY Analysis Showed That McCain’s Gas-Tax Proposal Could Save Motorists $6.8 Billion In Taxes During The Summer.” (Kathy Kiely, “Gas-Tax Holiday Among McCain’s Plans For Economy,” USA Today, 4/16/08)
I’ve still got a lot of research to do, but when i asked some of my friends that live outside of the U.S. who they would vote for they immediately, without hesitation, said Obama.
Either way it will be an interesting election year and my vote is still undecided and so if you have some good information to swing me one way or the other, I’d like to hear it.
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Celebrity Couples
Look at John’s family, it makes me want to punch him in the mouf for being so lucky.
The Arquette’s aren’t nearly as pretty as John and Alison pictured above, but I’ve always had a crush on Monica from Friends – even though in this picture she looks a little mousy.
Okay, Dean and Tori are a beautiful couple. Tori never looked so good. I loved 90210, Kelly and Donna and the Peach Pit.
Hey, It’s Bill and Hillary Clinton… Couldn’t you just picture Hillary in a bathing suit by the beach reading a book in the Hamptons? It’d be one of those 1950’s bathing suits but bill would be wearing a speedo and surreptitiously checking out other women not realizing that Hillary has it all, brains and looks.
Guess Who… it’s Republican Presidential Candidate and his wife. Look at that bonnet she is wearing, it’s very demure and Little House on the Prarie – but I like it, who didn’t like Laura Ingalls?
And lastly, the beautiful Governor Palin who was Miss Wasilla a long time ago, whatever that means. This photo is from the beauty pageant. She’s what I’d call “A fresh-faced beauty”. I mean, who wouldn’t want to take this girl home to mama and then spend a lifetime with her?
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Dean Koontz for President!
Who are you gonna vote for? It’s been interesting to hear feedback from my friends. I have to admit I don’t keep up with politics as much as I should. I hear bits and pieces on the news and then I ask my friend Alan Meadows what he thinks and I base my decisions on what he has to say because the dude is really brainy and actually watches shows like CNN and the History channel. Those kind of shows put me to sleep.
Personally, I’d like to vote for Dean Koontz or Wilbur Smith. They are two of the smartest guys I’ve ever read and their understanding of the world and politics, history and religion fascinates me. Other than the BIble, these two writers have been my greatest teachers – seriously.
What I would like though are some good sites with information about both presidential candidates that give me the complete 411. Anyone know of a few good places I should be checking out?