We live in a world, where 'TV News' rules people's mind. Judgements are formed on the basis of biased reporting, emotive issues and distorted facts. The fleeting pitch made on the TV does not subject itself to in-depth analysis, fact check or reasoning which leads to dumbing down of people. Nowadays, it is social media, that competes with TV. Sensational messages and videos are forwarded without even waiting for fact check or authentication as though doing so would somehow negate the agenda or propoganda that fits one's beliefs..... Here's a message that I received on Whatsapp. Ofcourse, it seems quite logical right? Read on...
Tax System explained in a simple way.
Suppose that every day, ten men go out for beer and the bill for all ten
comes to Rs.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 Rs.1.
The sixth would pay Rs.3.
The seventh would pay Rs.7.
The eighth would pay Rs.12.
The ninth would pay Rs.18.
The tenth man (the richest) would pay Rs.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 beer by Rs.20’. Drinks for the ten now cost just Rs.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 Rs.20 windfall so that everyone would get his 'fair
share?'
They realized that Rs.20 divided by six is Rs.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 would now pay Rs.2 instead of Rs.3 (33% savings).
The seventh now paid Rs.5 instead of Rs.7 (28% savings).
The eighth now paid Rs.9 instead of Rs.12 (25% savings).
The ninth now paid Rs.14 instead of Rs.18 (22% savings).
The tenth now paid Rs.49 instead of Rs.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 Rupee out of the Rs.20,' declared the sixth man.
He pointed to the tenth man, 'but he got Rs.10!'
'Yeah, that's right,' exclaimed the fifth man.
'I only saved a Rupee, too.
It's unfair that he got ten times more than me!'
'That's true!' shouted the seventh man.
'Why should he get Rs.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, 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.
Quote from: David R. Kamerschen, Ph.D. Professor of Economics
For those who understand, no explanation is needed.
For those who do not want to understand, no explanation is possible.
***
This message supposedly comes from a Ph.D Professor of Economics. Great analysis right? The message seems so clear that it seems even an explanation is not required. The professor has for sure conservative leanings and believes in minimal government in affairs of business, which propounds the capitalist beliefs of low tax on the rich and wealthy. I think however, the good professor has mixed up theory and reality. Here are some facts :
The proponents of reducing taxes on the rich have to explain how corporations making billions of dollars in taxes pay a lower rate of taxes than an average middle class tax payer. Even the wealthiest individuals do the same. The modus operandi? Take advantage of tax loopholes provided for them for the exact same reasons by laws influenced by the lobbyist.....
Warren Buffett said that he was taxed at 17.7 per cent on the $46 million he made last year, without trying to avoid paying higher taxes, while his secretary, who earned $60,000, was taxed at 30 per cent. Don't believe? Check this link: http://tusb.stanford.edu/2007/07/warren_buffet_has_a_lower_tax.html/comment-page-1
And here's what USA Today reported : 27 giant profitable companies paid no taxes - USA Today Link :
http://www.usatoday.com/story/money...-profitable-companies-paid-no-taxes/81399094/
A Forbes report : Tax Increases? Why Facebook's Billion Dollar Income Isn't Taxed (At All) By IRS Link :
http://www.forbes.com/sites/robertw...income-isnt-taxed-at-all-by-irs/#296fa577361c
***
In short, just don't believe all that you see on TV or read in social media or even newspapers. While I do not believe in Illumanati and secret societies, there is do doubt in my mind however, that we, as individuals are taken for a royal ride by those in power and those who can influence those in power without the ordinary Rahul, Rahim and Robert any wiser.....
My 2C.