*sigh* I'm loosing my touch. (Warning: Hi-jacked by Em)

[Bunnylady]

Hey, half a brain is better than none.

 

[vehve]

Yup, I've met many people who seem to manage with even less...

 

[Tanichca]

Yup, I've met many people who seem to manage with even less...

So you hang out with United States politicians often, then?

 

[Bunnylady]

Yup, I've met many people who seem to manage with even less...

Like me. The twin I didn't have got all the brains. That's why I'm so absent-minded . . . . .

 

[vehve]

Tanicha, actually I've never met one. I've seen our prime minister out and about a couple of times though. But we do have some stupid politicians here as well, it's an election year and I'm scared looking at the polls they've done. The people who actually understand money are going to lose a lot of votes, and instead we will probably end up with social democrats and people from a party called the "True Finns" in charge. But saying you'll raise the taxes of rich people and lower them for low income people is a popular tool. I just don't think it's all that fair tightening the screws on people already paying 60% on their income.

But now I'm starting to talk about politics again, and no one want's that. So, what have you been up to lately, haven't heard much from you.

 

[Tanichca]

Tanicha, actually I've never met one. I've seen our prime minister out and about a couple of times though. But we do have some stupid politicians here as well, it's an election year and I'm scared looking at the polls they've done. The people who actually understand money are going to lose a lot of votes, and instead we will probably end up with social democrats and people from a party called the "True Finns" in charge. But saying you'll raise the taxes of rich people and lower them for low income people is a popular tool. I just don't think it's all that fair tightening the screws on people already paying 60% on their income.

But now I'm starting to talk about politics again, and no one want's that. So, what have you been up to lately, haven't heard much from you.

Politicians are politicians the world over, it seems.


I'm good. Doing college stuff, running a youth group, got in a car accident on Sunday and bruised a few ribs... Just living life. How bout you?

 

[Bunnylady]

Oh, yeah, "soak the rich!" is always a popular campaign tactic; at least, until the voters realize that anyone not actually getting government assistance qualifies as rich . . . .

Yikes,, Tani - I'm glad to hear it's just bruises.

(very gentle hug, don't want to make your ribs hurt)

But I'd thought it had gotten a bit quiet around here - does this mean the bad drivers have migrated to your neck of the woods?

 

[vehve]

Good here, expecting baby bunnies and baby chicks.

 

[Tanichca]

Oh, yeah, "soak the rich!" is always a popular campaign tactic; at least, until the voters realize that anyone not actually getting government assistance qualifies as rich . . . .

Yikes,, Tani - I'm glad to hear it's just bruises.

(very gentle hug, don't want to make your ribs hurt)

But I'd thought it had gotten a bit quiet around here - does this mean the bad drivers have migrated to your neck of the woods?

They must have. The road I was driving on was already notorious for bad drivers... this one decided that a stop sign was merely a friendly suggestion. Sheesh.

 

[EmtheFishLady]

Tax Cuts Explained

from David R. Kamerschen, Ph.D. Professor of Economics 536 Brooks Hall University of Georgia

Let's put tax cuts in terms that 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.
• The tenth man (the richest) would pay $59.

So, 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.

"Since you are all such good customers," he said, "I'm going to reduce the cost of your daily meal by $20."

Now, the dinner for the ten only cost $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 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 each 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.

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 paid $5 instead of $7 (29% 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 $50 instead of $59 (15% savings).

Each of the six was better off than before. And the first four continued to eat 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 $9!"

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

"That's true!!" shouted the seventh man. "Why should he get $9 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 the tenth man didn't show up for dinner, so the nine sat down and ate 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 at the table anymore. There are other places offshore with nice restaurants and good business opportunities.