Posted on 12/16/2010 10:16:39 AM PST by combat_boots
By Michelle Malkin • December 16, 2010 12:55 PM Interesting goings-on in Washington. On the House floor just now, Democrats have just withdrawn the rule on the tax deal and moved on to a different bill providing technical corrections for the bankruptcy law.
Jo Maney from GOP Rep. David Dreier’s office explains: “Dems just pulled tax bill rule…they can amend it on the floor without having to go to back to committee. But it’s unclear how they will proceed at this point.”
Tax System explained in beer
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 t he 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, this 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.
Excellent! Surely, even a liberal with a degree from an Ivy League school could understand it.
It really sucks being rich.
BUMP
I’m reading here, and I don’t see what this is about. Can anyone clarify what’s going on?
I would really love it if Dreir’s office help had told us what the heck pulling the tax Rule off the floor actually means?????
Hope it means that the House dims are concerned about a procedural rebellion in the works from our dim bulbs.
Highly unlikely, I know.
“Heads up.”
Heads up for what? What does this mean, if anything? It does not seem to mean anything.
Heads up for what? What does this mean, if anything? It does not seem to mean anything._________________________
Probably means they’re breaking for lunch.
The have to have rules to determine how the debate on the bill would be handled. So no rules then no debate then no vote.
It really sucks having a single penny extracted by force from this tyrannical government, so that it may be squandered on worthless crap, individuals who do not deserve it and spent without the consent of the electorate.
The tack which conservatives, or any tax payer, should have should be that of not relinquishing ANY income, by ANYONE, EVER, to Obama’s crooked Federal government.
They are spending and spending and spending with no consideration of the fact that this money will have to be paid back. In fact, they know that they are spending us into oblivion, at which point taxes will have to be raised on EVERYONE, including the rich.
I don’t know what they’re doing, but Malkin came out with the info and posted it. She’s reliable.
Something’s afoot that’s worth mentioning. Just what is known by those who are closer to the source & insiders. I am not one of them.
But word is leaking out or Malkin wouldn’t have the info.
The have to have rules to determine how the debate on the bill would be handled.
Rules of debate? Hmmmm. Thank you for the tutorial, seriously, but as I said, the yank of the rule still may be a break for lunch. A three martini lunch. ;)
Thanks, RD 232
Didn’t Clyburn (SC) previously state that they make up the rules as they go?
Didn’t Clyburn (SC) previously state that they make up the rules as they go?
My bad, actually it was Alicee Hastings: “We make up the rules as we go along.”
http://www.narbosa.com/2010/03/alicee-hastings-we-make-up-rules-as-we.html
That’s great!
It is......I'm told.
The server at www.c-span.org is taking too long to respond.
Interesting...
are they going to turn off the mikes and lights again?
der pingle
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