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Updated over 16 years ago,
Atlas Shrugged-ish or Will Rogers?
Here's a couple of stories that deserve pondering...even if you've read them before.
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*Our tax system explained in terms of beer*
*Using actual percentages, the impact of a tax cut, and the public
reaction that everyone should be able to understand*.
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.
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*Story Number 2*
A boat docked in a tiny Mexican village. An American tourist
complimented the Mexican fisherman on the quality of his fish and asked
how long it took him to catch them.
"Not very long," answered the Mexican.
"But then, why didn't you stay out longer and catch more?" asked the
American.
The Mexican explained that his small catch was sufficient to meet his
needs and those of his family.
The American asked, "But what do you do with the rest of your time?"
"I sleep late, fish a little, play with my children, and take a siesta
with my wife. In the evenings, I go into the village to see my friends,
have a few drinks, play the guitar, and sing a few songs. I have a full
life."
The American interrupted, "I have an MBA from Harvard and I can help
you! You should start by fishing longer every day. You can then sell the
extra fish you catch. With the extra revenue, you can buy a bigger boat."
"And after that?" asked the Mexican.
"With the extra money the larger boat will bring, you can buy a second
one and a third one and so on until you have an entire fleet of
trawlers. Instead of selling your fish to a middle man, you can then
negotiate directly with the processing plants and maybe even open your
own plant. You can then leave this little village and move to Mexico
City , Los Angeles , or even New York City ! From there you can direct
your huge new enterprise."
"How long would that take?" asked the Mexican.
"Twenty, perhaps twenty-five years," replied the American.
"And after that?"
"Afterwards? Well my friend, that's when it gets really interesting,"
answered the American, laughing. "When your business gets really big,
you can start buying and selling stocks and make millions!"
"Millions? Really? And after that?" asked the Mexican.
"After that you'll be able to retire, live in a tiny village near the
coast, sleep late, play with your children, catch a few fish, take a
siesta with your wife and spend your evenings drinking and enjoying your
friends."
And the moral of this story is: ......... Know where you're going in
life... you may already be there. :cool: