RUDDS SUPER MINING TAX EXPLAINED VIA THE "BEER ECONOMY" FOR THE AVERAGE JOE....
RUDDS SUPER MINING TAX EXPLAINED VIA THE "BEER ECONOMY" FOR THE AVERAGE JOE....
Have a read...
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 ball.
"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 men
would 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 realised 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 a higher percentage the poorer he was, to follow the
principle of the tax system they had been using, and he proceeded to
work out the amounts he suggested that each should now pay.
And so the fifth man, like the first four, now paid nothing (100% saving).
The sixth now paid $2 instead of $3 (33% saving).
The seventh now paid $5 instead of $7 (28% saving).
The eighth now paid $9 instead of $12 (25% saving).
The ninth now paid $14 instead of $18 (22% saving).
The tenth now paid $49 instead of $59 (16% saving).
Each of the six was better off than before. And the first four
continued to drink for free. But, once outside the bar, the men began
to compare their savings.
"I only got a dollar out of the $20 saving," 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 benefit than me!"
"That's true!" shouted the seventh man. "Why should he get $10 back,
when I got only $2? The wealthy get all the breaks!"
"Wait a minute," yelled the first four men in unison, "we didn't get
anything at all. This new tax 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 their 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 government ministers, is
how our tax system works.
The people who already pay the highest taxes will naturally 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.
For those who understand, no explanation is needed.
For those who do not understand, no explanation is possible.
"Just because you are a Character, Doesn't mean you have Character."
Mr Wolf
.thumbnail.jpg "Goatch on a hour long fight")
Adam Gallash
Posts: 15610
Date Joined: 29/11/05
Whether Conservative,
Whether
Conservative, Liberal
or
Labour , I think
you'll get
a kick out of
this!
A little boy goes to his
dad and asks, 'What is Politics?'
Dad says, 'Well son, let
me try to explain it this way:
I am the head of the
family, so call me The Prime Minister.
Your mother is the
administrator of the money, so we call her the Government.
We are here to take care
of your needs, so we will call you the People.
The nanny, we will
consider her the Working Class.
And your baby brother,
we will call him the Future.
Now think about that and
see if it makes sense.'
So the little boy goes
off to bed thinking about what Dad has said.
Later that night, he
hears his baby brother crying, so he gets up to check on him.
He finds that the baby
has severely soiled his nappy.
So the little boy goes
to his parent's room and finds his mother asleep.
Not wanting to wake her,
he goes to the nanny's room. Finding the door locked, he peeks in the keyhole and sees his father in bed with the nanny..
He gives up and goes back to bed.
The next morning, the
little boy say's to his father, 'Dad, I think I understand the concept of politics now. '
The father says, 'Good, son, tell me in your own words what you think politics is all
about.'
The little boy replies, 'The Prime Minister is screwing the Working Class while the
Government is sound asleep. The People are being ignored and
the Future is in deep shit.'
Site Admin - Just ask if you need assistance
alfred
Posts: 3097
Date Joined: 12/01/07
You missed the grand dad who
You missed the grand dad who is the Union and he was watching the dad and maid, so insert after the Government is sound a sleep, the Union watched the Prime Minister screwing the Working Class and does nothing .......
Feral
Posts: 1508
Date Joined: 01/11/06
love it :) both are great !!!
love it :)
both are great !!!
uncle
Posts: 9348
Date Joined: 10/02/07
great stuff
bit like the old show Yes minister,so funny and yet so true
all aggressive fish love bigjohnsjigs
cuthbad
Posts: 1266
Date Joined: 22/04/09
haha i remember the first
haha i remember the first one doing the rounds re the GST as well. Both r pretty funny though!!
Also the first one wasnt written by professor Kamerschen, his website says he has no idea who wrote it lol
deepwater
Posts: 1921
Date Joined: 09/05/07
if only it was easy for us
if only it was easy for us all to under stand haha
jeff
sea-kem
Posts: 14851
Date Joined: 30/11/09
It's funny how 16% of the
It's funny how 16% of the mining workforce were sacked at the drop of the hat when the globalFC hit. Then we have the surreal vision of twiggy forrest showing up at his rally dressed like a worker. These rich fatcats don't give a shit about the workers it's all about keeping their pockets lined, bottom line.
Love the West!
Dale
Posts: 7930
Date Joined: 13/09/05
yes sea-kem, you hit that
yes sea-kem, you hit that one on the head.
Cheers
Dale
"Just because you are a Character, Doesn't mean you have Character."
Mr Wolf
Alan James
Posts: 2206
Date Joined: 30/06/09
You are quite right
A number of the mining workforce were out of work due to the GFC. Why? It became unprofitable under the financial market at the time for them to make a profit. The so called super tax sure as hell ain't going to make mining more profitable, so yes the danger signs are out there. As for the fatcats in Australia, I think it's great. The more they line their pockets the more wealth it brings to the community, jobs for you a me and the more we spend. As the first story above said, piss them off and the may line their pockets elsewhere.
sea-kem
Posts: 14851
Date Joined: 30/11/09
You what I don't like out of
You what I don't like out of all this, is that we are being bullied by these sooks because they can't get their way. It's embarassing that ordinary working folk like us have to pander to these arseholes for work. Luckily for me I'm not in that industry but it affects us all in the end.I think KRudd was going to call their bluff but the advertising campaign by the mining bosses and behind the scenes political play put paid to that.what we'll end up with is a watered down half assed policy.
Love the West!
Alan James
Posts: 2206
Date Joined: 30/06/09
Mining Bullies
Quite the opposite. My recollection is that it was KRudd who thought he could walz in and make demands from the mining companies without consultation. He then proposed spending $38 million of tax payers money to sell an ill thought out policy to the public and then squealled when the mining companies began their own campaign. Comical.
However this has been done to death on another post so I'm happy to agree to disagree.
pale ale
Posts: 1755
Date Joined: 02/01/10
Same as krudd and wanko
Same as krudd and wanko Garret are creating marine parks all around Australia without any consultation!!!! Could be NO FISHING ZONES coming to your local fishing spot next.
Dale
Posts: 7930
Date Joined: 13/09/05
Labour just got pounded in a
Labour just got pounded in a by election in NSW, That's a sign for the future.
Cheers
Dale
"Just because you are a Character, Doesn't mean you have Character."
Mr Wolf
Adam Gallash
Posts: 15610
Date Joined: 29/11/05
yep
Lots of ordinary Aussies have shares in these mining companies, they're not all owned like Fortesque. Theres consquences not only to the job market. Krudd just wants more coin to play with to eliminate the debt he's built up through economic stimulus packages because I'm sure thats not going to be a pretty figure when its brought up pre election.
Site Admin - Just ask if you need assistance