Tax Laws 101!!

Ok—I’m totally stealing this from Dax Desai.com but honestly—it was the first time someone actually explained taxes really well! I don’t even drink beer–but understood this one! I’ve always wonder why people get so unhappy when we give “the rich” tax breaks…well…duh…because they are the ones that pay MOST of the taxes!! We are a Capitolistic society…it works…some people have more than other…if you want more…work harder! But get off the pity party of tax breaks for the rich, and make your own life better!
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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

The Newest Incarnation!!

Have you been over to Kater-Bug Cakes? It’s my new blog dealing with all things CAKE! Now honestly, next to Chocolate…is there anything more fun than cake? I have enjoyed decorating cakes and seeing how they come to life with just a little different technique here and there! Like this cute little creation…

It’s not perfect…but it sure is fun!

If you enjoy getting a little spunky with your creations as well–head on over and leave me a link to your favorite cake! I’ll even put it in the showcase for you so everyone can gush!

I’m Weird!!

You Are Fairly Normal

You scored 65% normal on this quiz Like most people you are normal in some ways… But you aren’t a completely normal person. You’re a little weird too! Why You Are Normal: You think fishnet stockings are trashy You prefer fiction to non fiction You would rather be pale than tan You’d rather have rats than cockroaches in your home If given the choice, you would choose to have more money over more time Why You Aren’t Normal: You would rather be a movie star than an astronaut You are no longer with your first love You don’t keep up with your horoscope You find the Chicken Dance to be the more embarrassing dance You prefer your family to your friends

Happiness Is…

My sister in law forwarded this to me in an email, and I have to say, I was touched! Not only does seeing a man get emotional get me all warm and fuzzy (most men won’t do that) but this man shared some of my same thoughts and opinions. And to quote him…Whether or not you are of our faith, or a different one, or not any faith at all–you can learn a lot from the example of this man! I got all teary–but it was Happy teary!!