Feb 23 2009

Why Obama/Democrats Are Idiots (or Believe You Are)

Published by at 14:30 under Opinion,Rants

This shamelessly cribbed from here, but only because I couldn’t do a direct link. Full credit and thanks to David R. Kamerschen, Ph.D. Professor of Economics University of Georgia for this gem:

Let’s help Obama out with a little tax lesson, if he can understand this – not sure if he will get it:

A Somewhat Different Version of an Old Story

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.

[Editor’s Note: This means that 40% of the people pay no taxes at all, the next 10% pay 1% of all taxes,  the next 10% pay 3%, the next 10% pay 7%, the next 10% pay 12%, the next 10% pay 18%, and the top 10% of the richest taxpayers pay 59% of all taxes.]

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!”

[Editor’s note: This is the Great Democrat Lie. The richest 10% of taxpayers receive the greatest savings in terms of whole dollars ($10 vs. $1), but the worst in relative terms (16% vs. 33%) . So, even with the adjustment, the top 10% are still taxed the highest and the poorest the lowest. Democrats would have you believe that the whole numbers are more important to get you to hate all those “selfish rich people.” Also note that even with the $10 savings, the top 10% are now paying 61% of all taxes (up from 59%.) So, in effect, their burden is greater after the “tax cut”.]

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.

[This is what the Democrats don’t want you to realize: job creation only comes from creating new businesss or expanding existing ones. This only happens when businesses have the opportunity for profit. If taxes are too high, then the incentive and the ability to start a new business or expand one is lost, and will usually result in economic contraction, resulting in loss of jobs. Business also get much of their working capital from the sale of stock. If capital gains taxes are too high, the incentive for people to invest in stocks is lost, also resultling in economic contraction. Despite what these morons say, you cannot tax your way to prosperity – it just doesn’t work.What is does do is provide essentialy free money to people who will vote for Democrats. That is the purpose of the so-called Economic Stimulis Pagkage – is to grease all the asses that got Obama into office. He knows that most people don’t understand economics, so he constantly preaches how he is going to give you free money and punish all those “selfish rich people”, because so long as you buy that line, he and his Democratic idiots can remain in office and continue to line their pockets with your children’s future. Obama has already reversed himself on several of the “promises” he campaigned on – and he will continue to do so. Make no mistake, his game is to enrich himself and his cronies, and if I’m wrong I’ll stand in Union Square in a dress and apologize. But I’m not wrong – the market has spoken.]

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