Where America Will End Up

I was checking out the online version of The New Hampshire Union Leader, and saw an article about NH Republican Judd Gregg’s effort to modify the tax code with Senator Ron Wyden (D-OR). I am not interested in any kind of progressive income tax, even the simplified one Gregg and Wyden offer, so I skimmed through it quickly.

Below the article, however, I ran across a brilliant analogy to the American tax code. I don’t know if the commenter, one Jay of Manchester (NH), came up with it…but it’s really, really good.

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 total.

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.

Steve Forbes has pushed the flat tax for well over a decade, and former Arkansas Governor Mike Huckabee, talk show host Neil Boortz and Republican Georgia Congressman John Linder have pushed the Fair Tax for many years. Gregg’s idea is better than what we currently have- it gets rid of many special interest tax breaks, among other things- but it is not nearly as good as either the flat or Fair taxes. Increasingly progressive tax systems are always bad.

Personally, while the Fair Tax would be the best way to institute a tax- it gives you a choice of how much you want to be taxed, among other benefits, being a sales tax- I think the flat tax is the most politically palatable. The flat tax pleases Democrats, because of its innately progressive nature, but it does not become increasingly progressive, which should please Republicans. Furthermore, like the Fair Tax, it gets rid of the class warfare that permeates our current tax structure. The same rates are applied to all taxpayers, and any changes would thus affect all taxpayers.

We’re All Racists Now…

Apparently we’re all racists now. Jimmy Carter told me so.

I’m from Dixie. The land of labels. The area of the country were if anyone has a problem with anything that anyone else of the opposite skin color does it’s always attributed solely to racism. The accusation usual comes from Liberals. It’s frustrating. It’s equally as frustrating to listen to Carter proclaim his excitement of the South’s progress in race relations like he is sitting on some cloud as a deity encouraging his Southern brothers toward some goal that he had already achieved ages ago.

Jimmy Carter, please go away. You aren’t President, you aren’t anything. You have failed so many times I cannot even think of a time you succeeded other than somehow tricking the country into voting for you. Oh, and congrats on that Nobel Prize for keeping North Korea free of nuclear weapons. As a Georgian, if I could kick you out of my state I would. You bring the Empire State of the South nothing but shame.

I was happy to see Robert Gibbs shoot down Carter’s assessment. It may be the first truthful and logical thing I’ve ever heard the man say.

When Maureen Dowd wrote her hate column to Joe Wilson last week she went after his affiliation with the Sons of the Confederacy. Anyone reading this without knowledge of what the SCV is would immediately associate this with some sort of secessionist or racist organization, which is what I’m guessing since it was in the New York Times. The more accurately named Sons of Confederate Veterans is a veterans organization. How dare he be apart of a veterans organization!

SCV was formed in union with the Grand Army of the Republic, which is the veterans organization of Northern soldiers during the Civil War. These groups M.O. is to research and preserve the history of the war, establish battle sight memorials, and help individuals locate information on relatives that fought in the war. The SCV has received commendation from both Republican President George Bush (Bush, George W. “Letter of Commendation.” Confederate Veteran, June, 1996: p.6.) and from Democratic President Bill Clinton (Clinton, Bill. “Letter of June 21, 1994, from Bill Clinton.” UDC Magazine, Sept. 1994: p. 9.). But how dare you be a member Joe Wilson! That makes you a racist!

It must be noted that Obamacare will cover illegal immigrants. Ed Morrissey covered this on HotAir.com when the neutral Congressional Research Office announced this a few weeks ago. I was told recently by a blue crusader that Joe Wilson was a racist because he yelled, “You lie” after Obama mentioned illegals. That somehow because Obama was lying about coverage of illegal immigrants, and Wilson called him on it means that Wilson is a racist because the lie he uncovered pertained to illegal immigrants. Seriously? Informal fallacy perhaps?

Does anyone realize what’s going on here?

That’s right Admiral, it’s a trap. Democrats want us to be having this conversation. They want us to be stirred up and talking about race relations, and our thoughts on the black president. Which is completely ironic in itself considering the fact that WE HAVE A BLACK PRESIDENT! White people had to vote for him too.

But the whole point of all of this is that we are now not talking about what we should be talking about: the health care and cap and trade bills. There is recent precedence for this if you don’t believe me. Remember how concerned we all were for the well fair of the voter in Iran? Then Michael Jackson died. Iran what? Sad but true.

What’s also sad but true is that race relations in this country may have just been set back 20 years. And at the fault of the liberals stirring up the controversy. Ironically the Democrats always proclaim to be the ones promoting minorities. But Robert Byrd is running around unafflicted by his own party for his massive involvement in the KKK. And it’s the Democrats that block conservative efforts to move minorities out of inner city schools to provide them a better education. It’s almost as if the liberals don’t want to see minorities succeed, be well educated, and find successful jobs or become business owners. I wonder why? Ask Herman Cain.

But I digress. Focus people, focus! Let’s get back to the real issue before those in power in DC try to play some sleight of hand while they have us busy with our heads in the clouds over an issue that’s not really an issue.

-nick