Corzine (and Dems theory)

[CBRBob]

Subject: economics lesson

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.

[FDNYDANO18]

Exactly....

[causef0rconcern]

cute

[RCM78]

The way I look at it the fifth and sixth enjoyed the largest benefit.

Income taxes are a percentage of your income. It stands to reason that a 20% reduction in taxes will net someone who pays more taxes more actual dollars but everyone will still receive the same 20% benefit...

[CBRBob]

Percent is percent. Twice nothing is still nothing.

[bondo]

At least the rich guy in that story got a beer. This year's tax 'rebate' checks are going out to a lot of people who pay no taxes. The people who pay the most in taxes will get nothing but a pat on the back and more taxes.

NY has NJ beat in total taxes for 2007. WAY TO GO HILLARY!
Check it out sad but true. People wonder why taxes are high, too.

[jcblitz]

Originally Posted by bondo

At least the rich guy in that story got a beer. This year's tax 'rebate' checks are going out to a lot of people who pay no taxes. The people who pay the most in taxes will get nothing but a pat on the back and more taxes.

Are you talking about the stimulus checks? If so, people who do not pay taxes are not eligible for it.

[FDNYDANO18]

Originally Posted by jcblitz

Are you talking about the stimulus checks? If so, people who do not pay taxes are not eligible for it.

And I got this great bridge that goes right over the east river to sell ya... real cheap too


That is a "payment for votes" stimulus check ... plain and simple. And I'm payin Now....We'll ALL pay later....all except the Senator Ted Kennedy's of the world... all of his money is in the Caymans... He wont be bothered by the National debt when the Chicoms call to collect... He'll just move to Paris and go to parties...

[jcblitz]

Originally Posted by FDNYDANO18

And I got this great bridge that goes right over the east river to sell ya... real cheap too


That is a "payment for votes" stimulus check ... plain and simple. And I'm payin Now....We'll ALL pay later....all except the Senator Ted Kennedy's of the world... all of his money is in the Caymans... He wont be bothered by the National debt when the Chicoms call to collect... He'll just move to Paris and go to parties...

Actually, I meant to say file taxes, not pay. But they might get first of the month syndrome and actually file this year. It shouldn't be hard to write "Nuttin" on a piece of paper and send it in.

And internet rule #3024 states: Anyone who uses the "I've got a bridge for sale" phrase automatically loses any argument by default. Same goes with "you're gay", "grow up", "get a life", and hitler comparisons not involving WWII references or mustaches.

[RCM78]

Originally Posted by CBRBob

Percent is percent. Twice nothing is still nothing.

What about all the free beer? Thats gotta count for something...

[CBRBob]

Originally Posted by jcblitz

And internet rule #3024 states: Anyone who uses the "I've got a bridge for sale" phrase automatically loses any argument by default. Same goes with "you're gay", "grow up", "get a life", and hitler comparisons not involving WWII references or mustaches.

Who are you?