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A tax analogy, who's really paying their fair share?

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forums; Imagine the following: Ten good friends go out for dinner at a restaurant every night. The combined bill for the ...
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    Mr.Ganja Mr. Ganja beenthere's Avatar
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    Default A tax analogy, who's really paying their fair share?

    Imagine the following:

    Ten good friends go out for dinner at a restaurant every night. The combined bill for the ten totals $200. Since they all make differing amounts of money they decide that they divide the payment as follows:

    The four first - the poorest of the lot - don't pay at all.
    The fifth pays $2.
    The sixth pays $6.
    The seventh pays $14.
    The eigth pays $24.
    The ninth pays $36.
    The tenth and the richest pays $118.

    They were all pretty content with this way of splitting the bill and they went out to eat together every day. One day, however, the restaurant's owner decided he'd give them a discount.

    "Since you're such good customers", he said, "I'll give you a discount of $40." The ten's dinner would then cost $160. The group of friends decided they still wanted to keep splitting the check in the same fashion as previously. Therefore, the four first - whom paid nothing - were not affected and could keep eating for free. But how would the remaining six - those who were paying - divide the cost amongst them? How were they to split the value of the discount so that everyone got their fair share? The six realized that $40 divided by six equals $6.66. However, if they subtracted that amount from each person's share - the fifth and the sixth persons would get paid to go out and eat (by paying a negative amount).

    The restaurant owner suggested that it'd be fair to reduce each person's share roughly proportionally and he crunched the numbers to calculate the amount each person was to pay. He came to the conclusion that the fifth person too could eat free - just like the 1st through 4th did originally -, the sixth was to pay $4, the seventh $10, the eigth $18, the ninth $24 and the tenth $104 in contrast to his previous $118.

    As a result, ALL SIX paid a lower price than before and the four who paid nothing originally kept paying nothing.

    But one night after finishing their dinner, they all started comparing what they had saved. "I only saved $2 of the discount's total value of $40", said the sixth person. Then he turned and pointed to the tenth person who still paid the lion's share and said "But he saved $14!". "That's right", concurred the fifth person and added "I too only saved $2! It's unfair he saved seven times the amount I did". "That's right!", the seventh person yelled. "Why should he save $14 when I only saved $4? The rich always get the unfair advantage!". Then the four first - who never payed a penny - cried "Wait a minute! We didn't save anything at all from the discount! This system exploits and takes advantage of the poor!".

    The first nine persons then jumped the tenth and beat him up. The following night, he didn't show up for dinner - causing the other nine to sit down and eat without him. When the check arrived they realized a little something. They were $104 short to pay for dinner.
    Why Rick Santorum Should Be President

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    Marijuana EXPERT Mr. Ganja UncleBuck's Avatar
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    Quote Originally Posted by nontheist View Post
    Hello retarded bucky. Apparently you reading compensation has failed you?
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    Marijuana EXPERT Mr. Ganja NoDrama's Avatar
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    I make my good friends foot their share of the bill.
    Imagination was given to man to compensate him for what he is not, and a sense of humor was provided to console him for what he is.- Oscar Wilde

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    Mr.Ganja Mr. Ganja Mr Neutron's Avatar
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    Quote Originally Posted by beenthere View Post

    Why, is he going to buy dinner for all of us?
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    Mr.Ganja Mr. Ganja beenthere's Avatar
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    Progressives hate this tax analogy. LOL
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    Marijuana EXPERT Mr. Ganja UncleBuck's Avatar
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    i don't hate it. go on, ask me about it.

    you'd be interested in knowing i most favored santorum despite his social views because he seemed to really want to do something for the blue collar guy. could have been a great pick. but repubs don't fall in love, they fall in line, and your duty was to nominate the guy that lost to the guy that lost to obama last time. so you did.

    anyhoo, i'd love to answer any questions you may have about this analogy.
    Quote Originally Posted by nontheist View Post
    Hello retarded bucky. Apparently you reading compensation has failed you?
    Quote Originally Posted by desert dude View Post
    Fox news will undoubtedly continue on with honest reporting

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    Mr.Ganja Mr. Ganja beenthere's Avatar
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    Quote Originally Posted by UncleBuck View Post
    i don't hate it. go on, ask me about it.

    you'd be interested in knowing i most favored santorum despite his social views because he seemed to really want to do something for the blue collar guy. could have been a great pick. but repubs don't fall in love, they fall in line, and your duty was to nominate the guy that lost to the guy that lost to obama last time. so you did.

    anyhoo, i'd love to answer any questions you may have about this analogy.
    First and foremost, I'm not a republican, I'm a registered independent.
    So what do you think of the tax analogy, do you feel we should penalize success by imposing more taxes?

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    Marijuana EXPERT Mr. Ganja UncleBuck's Avatar
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    Quote Originally Posted by beenthere View Post
    ...do you feel we should penalize success by imposing more taxes?
    i am not a fan of penalizing success. nor am i a fan of plutocracy.

    and although i am not a fan of raising taxes, i do believe there does need to be major tax reform. the richest person in your analogy pays at a higher rate than all the rest. but the richest among us in real life (not your analogy) pay a lesser rate.

    romney is not even in the top 1%, he is in the top 0.006% of earners. yet if we put him in you analogy, he would be paying at a lesser rate than the 5th poorest person there. i mean, the guys pays 13% in taxes on his 20 million. canna sylvan and me (when i'm working those desk jobs) pay closer 25% in taxes on our $30k.

    so your analogy in not analogous, and to call it an analogy is an insult to analogies.

    a better analogy would be this: 1000 people attend a catering event. 6 of them are rich beyond your wildest dreams, they are richer than more than the bottom 800 or so attendees combined. the other 994 people range from dirt poor to pretty fucking rich. to pay for the event, which includes unlimited opportunity for good food, the filthy rich are charged $13 dollars to enter while the rest are charged anywhere from $35 for the well off, $30 for the not so well off but still getting by, $15 for the next to broke, $5 for the poverty folks, and $0 for the few truly poor.

    that's more analogous to how our current system works. we all put in for the success of the nation, some more than others, and at certain rates. the super rich pay about what the working poor do. the middle and upper class pay way more, and the few at the bottom pay nothing and even get a free ride.
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    Quote Originally Posted by nontheist View Post
    Hello retarded bucky. Apparently you reading compensation has failed you?
    Quote Originally Posted by desert dude View Post
    Fox news will undoubtedly continue on with honest reporting

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    And the fact is that even if the rich paid equal %'s, people would still complain that they need to pay more because it's not fair. I do agree that the current tax system is beyond fucked though.

    Beyond that, there are actually people out there who think that taxing a million+ salary warrants a 50%-60% tax. It's easy to follow that mentality if you lack dignity, and are the majority of people whom do not make 1 million dollar plus salaries. These same complainers would cry murder in the same situation, if they made million dollar salaries though, because it comes with the territory of the ignorance required by one, to believe in such a theory.


    By the way, Santorum is a complete wack job.
    Last edited by InCognition; 05-10-2012 at 09:40 AM.
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    Mr.Ganja Mr. Ganja kelly4's Avatar
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    Quote Originally Posted by UncleBuck View Post
    a better analogy would be this: 1000 people attend a catering event. 6 of them are rich beyond your wildest dreams, they are richer than more than the bottom 800 or so attendees combined. the other 994 people range from dirt poor to pretty fucking rich. to pay for the event, which includes unlimited opportunity for good food, the filthy rich are charged $13 dollars to enter while the rest are charged anywhere from $35 for the well off, $30 for the not so well off but still getting by, $15 for the next to broke, $5 for the poverty folks, and $0 for the few truly poor.

    .
    Yeah, but the ultra rich in this scenario can still say "I don't think it's worth it" and leave without paying.

    This scenario in the REAL WORLD:
    The "event organizer" would come over and say, "Stay, leave, who gives a fuck.....You've already been charged for the event!"
    "Oh, but it is a GOOD thing that the document is dead."-Canndo...in regards to the Constitution.

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