Sep 18, 2010

Effects of Tax Reduction on the Wealthy and the Poor

Following is an update on Buzz by one of my friends.. Looked like a good way to revive my Blog.. :D


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 a re 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 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 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

Jun 24, 2009

Ice Age with a whole new 'dimension'!

The adorable characters of Ice Age are back once again, this time exploring a whole new world below their own, full of huge dinosaurs, and all this in 3-D! Can't get any wilder than this!!
Ellie and Manny and about to become proud parents of a baby mammoth with Ellie pregnant, but this means that they give more attention to each other while Sid and Diego feel left out. As Sid wanders around in search of new friends, he stumbles upon three dinosaur eggs, and starts treating them like his own babies. Manny advices him to leave the eggs where he found them, but Sid does not listen. The mother dinosaur, while taking back its kids, takes Sid along. It all depends now on Manny and Diego to come back together and save Sid. But to do that they would require the help of Buck, a mad and ugly looking weasel who has been living in the dinosaur world and has been after Rudy, the biggest and wildest dinosaur, to avenge the loss of one of his eyes. Together they must save Sid, at the same time, protect themselves in that deadly world.
There are some great sequences, specifically the baby dinosaurs playing with the other animal kids and the final chase scene where they are trying to save Sid and protect Ellie from other small dinosaurs... some hilarious moments like when Sid misunderstands a male Yak for a female one.... I don't remember how many times I (almost)fell off my seat laughing... And add to all that the 3-D effect, and what you get is a complete family entertainer.
Oh and yes, our very loving acorn-obsessed Scrat gets a love interest in this one.... a female squirrel named Scratte.... Result? A love triangle! Watch out for the dance sequence between Scrat and Scratte leaving the acorn hear-broken and alone!
Go for it, and don't forget to take your mumma, papa, chacha, mama, dada-dadi, nana-nani and all the bachcha party.... and watch it in 3-D. They'll love it!!

An interesting piece of news:
According to a recent survey, most of the suicides happen on Wednesdays. The survey says that it might be because people get stressed out by the mid of the week and can't make it to the end. Complete article here.

Jun 23, 2009

Rains or No Rains???

Its been more than two whole days now since the first droplets sprinkled on the streets of Mumbai and we are still waiting for those famous(or rather infamous) heavy rains called the 'monsoon rains'! But there is some relief.... the weather's better now.... cool atmosphere.... nice breeze all throughout the day.... more cricket(now I can play in the afternoons too :D)...

Talking about rains, its kind of a general scenario everywhere. When it does not rain, people indulge in all kinds of rituals to make it rain, and when it does and doesn't stop, they pelt all sorts of curses back. But all of us have lots of memories associated with the monsoon - some good, some not so good. I have mine too... early morning walks at the Marine Drive watching those huge waves falling on the roads(my college was in the morning) or getting stuck in the 26 July floods and reaching back home after more more than 48 hrs(and various adventures associated with this one)... playing football, cricket in the rains or screwed up picnic plans due to excess rains... heavy downpour, trains jammed, "no college!!"or heavy downpour, stuck up in the trains for hours.... and how can I forget those days cuddled up in bed when its raining outside, and sometimes relishing on those hot bhajias or the days when you are lying in your bed due to flu and all you can eat is that bland dal chawal....

So, Rains or No rains??? I say - When its not raining, "Come, Oh Rains, its a very hot day, Little Johnny wants to play", and when it does, "Rain, Rain, Go away, Come again another day"

Anticipating some heavy downpour in the next 24 hours(that's what the met dept have said)... oh, and may be some days later you will read me hurling abuses at the rains asking it to go away... lol!

Before leaving, an interesting status msg of one of my friends-
"Theory and Practical are the same in Theory but not in Practical" :)
And no, I won't give him credit. Coz even he has lifted it from somewhere. :P

Ciao!

Jun 22, 2009

It's over..... finally!!!

Yes, it's all over. Too much of twenty20 cricket in the last coupla months. And as I had expected, India came back embarrassed not even reaching the semis(not that I didn't support them... but that's how India plays when there is too much expectation).
So, what now? I was used to watching all those late night matches even if it was a South Africa v/s Scotland(don't remember if it was a day-night match). Watching matches till late at night and then waking up late in the morning(at times afternoon :D) and also during the IPL - watching matches all throughout the day. But now, all I have to do at night is just lie down on my bed trying hard to fall asleep(I am so used to sleeping late and my comp has to be shut down by 12), or worse study for CAT!!
Looking back at the World Cup, I feel sad about the early ouster of India, which was one of the favourites to clinch the cup. All you get to hear in the news are the infinite reasons why India failed.... the innumerous injuries.... fatigue... poor strategies of Dhoni... no unity in the team after the Sehwag-Dhoni scandal.... and on and on and on. But then, I had sensed the pressure when in the match against Ireland, it took them almost 16 overs to reach a paltry target of 113 of 18 overs! Enuf!!! See, I told you.... Too much of cricket... I can't stop talking about it! Hopefully my next one will be have something fresh sans cricket.

Oh, and before I end it, an interesting news...

California girl gets dying wish to see movie "Up"
Pixar sent a DVD of their latest animated movie "Up" to a cancer-stricken California girl who was too sick to even go to the theatre to watch the movie. The girl died later that night. Read the complete story here.

Adios