“OUR TAX SYSTEM EXPLAINED IN BEER”BY, DR. DAVID.R.KAMERSCHEN, PH.D, PROFESSOR OF 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 Ball.“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 Men Would 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? 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 A Higher Percentage The Poorer He Was, To Follow The Principle Of The Tax System They Had Been Using, And He Proceeded To Work Out The Amounts He Suggested That Each Should Now Pay.And So The Fifth Man, Like The First Four, Now Paid Nothing (100% Saving).The Sixth Now Paid $2 Instead Of $3 (33% Saving).The Seventh Now Paid $5 Instead Of $7 (28% Saving).The Eighth Now Paid $9 Instead Of $12 (25% Saving).The Ninth Now Paid $14 Instead Of $18 (22% Saving).The Tenth Now Paid $49 Instead Of $59 (16% Saving).Each Of The Six Was Better Off Than Before. And The First Four Continued To Drink For Free. But, Once Outside The Bar, The Men Began To Compare Their Savings.“I Only Got A Dollar Out Of The $20 Saving,” 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 Benefit Than Me!”“That’s True!” Shouted The Seventh Man “Why Should He Get $10 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. This New Tax 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 Their 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 Government Ministers, Is How Our Tax System Works.The People Who Already Pay The Highest Taxes Will Naturally 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.By,David.R.Kamerschen, Ph.D.Professor Of Economics.
Monday, December 12, 2011
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Thursday, August 18, 2011
Ritemail: Wats Ur salary Per Minute
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1. Who is Anna Hazare?
Anna Hazare is a 72 year young ex-Indian army man. Fought 1965 Indo-Pak War
2. What's so special about him?
He built a village Ralegaon Siddhi in Ahamad Nagar district, Maharashtra
3. So what?
This village is a self-sustained model village. Energy is produced in the village itself from solar power, biofuel and wind mills.
In 1975, it used to be a poverty clad village. Now it is one of the richest villages in India. It has become a model for self-sustained, Eco-friendly & harmonic village.
In August 9, 2006 (Mumbai): Anna Hazare has begun an indefinite hunger strike to protest against changes to the RTI Act (To make RTI less powerful against politicians).
4. Ok,...?
This guy, Anna Hazare was awarded Padma Bhushan and is a known figure for his social activities.
5. Really, what is he fighting for?
He is supporting a cause, the amendment of a law to curb corruption in India.
6. How that can be possible?
He is advocating for a Bill, The Lok Pal Bill (The Citizen Ombudsman Bill) that will form an autonomous authority who will make politicians (ministers), bureaucrat (IAS/IPS) accountable for their deeds.
8. It's an entirely new thing right..?
In 1972, the bill was proposed by then Law minister Mr. Shanti Bhushan. Since then it has been neglected by the politicians and some are trying to change the bill to suit their theft (corruption).
7. Oh... He is going on a hunger strike for that whole thing of passing a Bill! How can that be possible in such a short span of time?
The first thing he is asking for is: the government should come forward and announce that the bill is going to be passed.
Next, they make a joint committee to DRAFT the LOK PAL BILL, 50% government participation and 50% public participation because you can’t trust the government entirely for making such a bill which does not suit them.
8. Fine, What will happen when this bill is passed?
A Lok Pal will be appointed at the centre. He will have an autonomous charge; say like the Election Commission of India. In each and every state, Lokayukta will be appointed. The job is to bring all alleged party to trial in case of corruptions within 1 year. Within 2 years, the guilty will be punished. Not like Bofors scam or Bhopal Gas Tragedy case that has been going for last 25 years without any result.
9. Is he alone? Who else is there in the fight with Anna Hazare?
Baba Ramdev, Ex. IPS Kiran Bedi, Social Activist Swami Agnivesh, RTI activist Arvind Kejriwal and True Indian Citizens.
Prominent personalities like Kapil Dev, Aamir Khan are supporting his cause.
10. Ok, got it. What can I do?
Least you can do for the man willing to die for a cause that is entirely for you and your future is spread the message. How?
Word of mouth: talk about it to your family and friends. Make them understand what this is about.
Putting status messages, links, video, changing profile pictures on your social networking (Facebook, orkut, gtalk, buzz etc).
At least we can support Anna Hazare and the cause for uprooting corruption from India. (You can give a missed call to 02261550789 to register your support, it’s free)
At least we can hope that his Hunger Strike does not go in vain.
At least we can pray for his good health.
And at least have a positive attitude towards it. (I heard people say ‘nothing can/will happen in India’, do not be such pessimistic)
Regards,
Anna Hazare is a 72 year young ex-Indian army man. Fought 1965 Indo-Pak War
2. What's so special about him?
He built a village Ralegaon Siddhi in Ahamad Nagar district, Maharashtra
3. So what?
This village is a self-sustained model village. Energy is produced in the village itself from solar power, biofuel and wind mills.
In 1975, it used to be a poverty clad village. Now it is one of the richest villages in India. It has become a model for self-sustained, Eco-friendly & harmonic village.
In August 9, 2006 (Mumbai): Anna Hazare has begun an indefinite hunger strike to protest against changes to the RTI Act (To make RTI less powerful against politicians).
4. Ok,...?
This guy, Anna Hazare was awarded Padma Bhushan and is a known figure for his social activities.
5. Really, what is he fighting for?
He is supporting a cause, the amendment of a law to curb corruption in India.
6. How that can be possible?
He is advocating for a Bill, The Lok Pal Bill (The Citizen Ombudsman Bill) that will form an autonomous authority who will make politicians (ministers), bureaucrat (IAS/IPS) accountable for their deeds.
8. It's an entirely new thing right..?
In 1972, the bill was proposed by then Law minister Mr. Shanti Bhushan. Since then it has been neglected by the politicians and some are trying to change the bill to suit their theft (corruption).
7. Oh... He is going on a hunger strike for that whole thing of passing a Bill! How can that be possible in such a short span of time?
The first thing he is asking for is: the government should come forward and announce that the bill is going to be passed.
Next, they make a joint committee to DRAFT the LOK PAL BILL, 50% government participation and 50% public participation because you can’t trust the government entirely for making such a bill which does not suit them.
8. Fine, What will happen when this bill is passed?
A Lok Pal will be appointed at the centre. He will have an autonomous charge; say like the Election Commission of India. In each and every state, Lokayukta will be appointed. The job is to bring all alleged party to trial in case of corruptions within 1 year. Within 2 years, the guilty will be punished. Not like Bofors scam or Bhopal Gas Tragedy case that has been going for last 25 years without any result.
9. Is he alone? Who else is there in the fight with Anna Hazare?
Baba Ramdev, Ex. IPS Kiran Bedi, Social Activist Swami Agnivesh, RTI activist Arvind Kejriwal and True Indian Citizens.
Prominent personalities like Kapil Dev, Aamir Khan are supporting his cause.
10. Ok, got it. What can I do?
Least you can do for the man willing to die for a cause that is entirely for you and your future is spread the message. How?
Word of mouth: talk about it to your family and friends. Make them understand what this is about.
Putting status messages, links, video, changing profile pictures on your social networking (Facebook, orkut, gtalk, buzz etc).
At least we can support Anna Hazare and the cause for uprooting corruption from India. (You can give a missed call to 02261550789 to register your support, it’s free)
At least we can hope that his Hunger Strike does not go in vain.
At least we can pray for his good health.
And at least have a positive attitude towards it. (I heard people say ‘nothing can/will happen in India’, do not be such pessimistic)
Regards,
Monday, February 28, 2011
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