Monday, February 25, 2008

Our Tax System Explained in Bar Terms

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 got' '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, ladies and gentlemen, 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.

Special thanks to David R. Kamerschen, Ph.D.

Tuesday, February 5, 2008

Democracy Lifecycle

About the time our original thirteen states adopted their new constitution in 1787, Alexander Tyler, a Scottish history professor at the University of Edinburgh, had this to say about the fall of the Athenian Republic some 2,000 years earlier: " A democracy is always temporary in nature ; it simply cannot exist as a permanent form of government."

"A democracy will continue to exist up until the time that voters discover they can vote themselves gifts from the public treasury. From that moment on, the people will always vote for those who promise the most benefits from the public treasury, with the result that every democracy will finally collapse due to loose fiscal policy, which is always followed by a dictatorship."

The average age of the world's greatest civilizations from the beginning of history, has been about 200 years. During those 200 years, those nations always progressed through the following sequence :
1. From bondage to spiritual faith;
2. From spiritual faith to great courage;
3. From courage to liberty;
4. From liberty to abundance;
5. From abundance to complacency;
6. From complacency to apathy;
7. From apathy to dependence;
8. From dependence back into bondage.

With the country moving in the direction of every career politician wanting to give away everything for nothing, please realize what is at stake. I ask you not to tire, but fight on and believe that we can stop and reverse the cycle. Most of all, please remember that apathy is the greatest threat to our democracy. Freedom and Liberty are virtues that are to be protected at all cost. Once you surrender Liberty or Freedom for Dependence you have enslaved yourself and your children to a life of hardship and fear that leads to tyranny. Choose this day what is most important to you and your children. Your vote for City Council, State Representative, US Congress, Judge, and President matter more than ever.

Join the Revolution and return our Commonwealth and Country back to the people.
Election day is May 20th for the Republican primary and the General Election is November 4th.

"I ask for your support to change Frankfort forever."
-Vote knipper on May 20th and again on November 4th, 2008.
www.knipperweb.com
Join the Revolution!