Bar Stool Economics


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 - 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.

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2005 Smoke LE CC 4x4 w/ BT

Truxedo Lo-Pro
BFG All Terrain 285/65/18
Matching Front Tint
Active Tuning Grounding Kit


Inch by inch, to win or lose. Inch by inch, to live or die. "The inches we need are everywhere around us!"

Sad but true.

Red

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2005 Titan KC SE, Helwig, True-Track, ARE MX Canopy

I just realized I posted this in the wrong forum. haha....

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2005 Smoke LE CC 4x4 w/ BT

Truxedo Lo-Pro
BFG All Terrain 285/65/18
Matching Front Tint
Active Tuning Grounding Kit


Inch by inch, to win or lose. Inch by inch, to live or die. "The inches we need are everywhere around us!"

lol... good one!!

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Jeremy



JBA Evol Cat-Back's * New Generation Volant Cold Air Intake (thx for the great deal SCMS John) * Airaid TBS Spacer * 2 Degree Timing Advance (thx:RB'sTitan) * AlTezza Custom tinted tail lights * 9006 True Views - Front Low Beams * Foglight modifcation (thx:wakeboarder) * Custom Painted Engine Cover (thx:scottsbro23) * CNC 2.5"Leveling T-6 Kit * 33x12.50x20 Nitto Terra Grapplers * 20x9.5 Axis Titan Rims (thx:vshortt) * Rockford Fosgate System w/subs * (2) 10" Memphis M Series Subs * Custom built 'Firedown' Sub Box * Sirius Satellite System * Viper 560XV Alarm w/ Automatic Engine Starter *

'UpRev - Osiris/Cipher' & Headers coming soon

i was wondering why it was in here, but it was a good read nonetheless....and further motivation for me to become rich...not that i don't have enough of that already though, but it's always good to have more...

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radflo 2.0 fronts
dr rears
nitto terra grapplers
pioneer avic-n2
trex grille

Seems like I have been drinking beer with the wrong guys, anyone want to volunteer to be a tenth?

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05 kc le 4x4 mods: Vk-pro, Injen intake, Dre coilovers, infinity steering wheel and console. needs: this list is way to long

point is, companies like DeathReat Clothing and PRGproducts should be given significant tax breaks for keeping their business here in the states instead of going to other countries like mexico and having their sh!t mass-produced...

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PRGbuilt
born 12/3, purchased 1/4 '04 Smoke SE KC PRG MT kit, CST spindles, PRG Spec'd SAWs 2.5" C/Os w/Eibachs, SAW Airbumps, CST carrier bearing, 37x12.5x17 Pro Comp Extreme All-Terrains, American Racing Mojave Teflons, HID low beams, Magnaflow custom exhaust, Injen CAI Filter, ID FRP prerunner fenders, front windshield tinted, Optima Yellow Top, Pioneer AVH-4100DVD w/ipod adapter connected to 80gb iPod, Sirius, HD radio tuner, Hertz 6.5" Components front, Boston 6.5" rear, Boston G1 10" subs, tech12 sub enclosure, Alpine amps, Eclipse BEC106 backup camera, TrueTrac, regeared from 2.94s to 4.11s, CTW TT prerunner fiberglass bedsides, Giant Motorsports under axle conversion kit w/64" deavers (21" rear travel) with Giant custom built rear bedcage and KING 3.0 bypass shocks...

VIDS!!! http://vimeo.com/groups/h00ligan/videos

good ole capitalism.....

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'04 2wd with PRG stuff......



"Wait a minute. What did you just say? You're predicting $4-a-gallon gas? ... That's interesting. I hadn't heard that." --George W. Bush, Feb. 28, 2008

Well the new companies could always move to Michigan, where the fukcing dems decided it would be a wonderful idea to raise personal and business taxes as the economy goes down the ????ter.

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05 kc le 4x4 mods: Vk-pro, Injen intake, Dre coilovers, infinity steering wheel and console. needs: this list is way to long