Our Tax System Applied to Beer

It kind of reminds me of a debate I heard on the AM radio driving around last weekend.

Somewhere (I don't recall where, it was a national program and I passed through multiple states anyway) they were discussing the cigarette taxes. There was a proposal to lower cigarette taxes. The reasoning was that since cigarettes were higher than the bordering states, this would encourage smokers near the border to buy in-state and thus create more tax revenue.

The other side claimed that these added sales would in no way offset the lost revenue that lower the tax would cause, and had a counter-proposal to raise cigarette taxes. This, they said, would be sure to add the most revenue.

At no point did anyone justify why the government had a right to make up its shortfalls by taxing smokers more. The assumption was that their money was fair game, and the only risk was that putting taxes too high would actually cause people to quit smoking.

So to with the rich in many of our discussions. Yes they can give up a higher percentage of their earnings and maintain a comfortable life, while a truly poor person probably can't spare any income at all. Yes the "trickle down" effects of tax cuts for the rich are often exaggerated.

But people hardly ever feel the need to justify using the rich as a source of income to whatever tax amounts. The only threat is that businesses will relocate and the golden goose will fly the coop.

Why would a business be worried about income tax? Wouldn't they be worried about corporate tax?

No explanation is possible.

Notamonkey said:

No explanation is possible.

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Amazing, isn't it. It's almost as if they want us to beat our heads against the wall - they don't care about the truth, however they love the [contact] sport.

Wealthy envy is the perfect attack method of those who are power hungry control freaks. I keeps people from becoming rich so they can't become self sufficient. Most people aren't rich so they can provide more votes, and they pay little or not income taxes anyway. The "good" progressive like Obama know higher taxes won't increase revenue. It's a way of controlling people.

The big brother lovers think higher taxes will somehow improve their lot in life by sticking it to the "rich", when all it does is scare off job producers and make more people dependent on government assistance which will drive us closer to insolvency.

KarateCowboy said:

Thought I'd share this poignant video with you. The title is overly dramatic, but the actual story is quite interesting:

video

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Great video. Succinctly describes the problem with progressive taxation, the utter selfishness, greed, and envy on the part of those who think "the rich" are somehow taking advantage of them - when truth be told, it's exactly the opposite.

And you want to know the first mistake made?

The first mistake made was by the guy who agreed to feel guilty for having more than the others.

His second mistake was agreeing to pay $59 for his beer - which should have showed him in concrete terms the error of his first mistake.

EdwinWillers said:

Great video. Succinctly describes the problem with progressive taxation, the utter selfishness, greed, and envy on the part of those who think "the rich" are somehow taking advantage of them - when truth be told, it's exactly the opposite.

And you want to know the first mistake made?

The first mistake made was by the guy who agreed to feel guilty for having more than the others.

His second mistake was agreeing to pay $59 for his beer - which should have showed him in concrete terms the error of his first mistake.

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As soon as someone talks about being fair I know things are gonna get less fair.

It's kinda like when someone says "No disrespect but,...." I know someone is about to get dissed.

Belk said:

Why would a business be worried about income tax? Wouldn't they be worried about corporate tax?

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Only corporations pay the corporate tax rate. Sole proprietors and general partners pay income taxes at the same rate as individuals. And most states tax businesses in other ways, like a special partnership tax, licenses, state corporate taxes, etc. People really have no concept of exactly how much state and federal governments take away from small business owners.

citizenthom said:

Only corporations pay the corporate tax rate. Sole proprietors and general partners pay income taxes at the same rate as individuals. And most states tax businesses in other ways, like a special partnership tax, licenses, state corporate taxes, etc. People really have no concept of exactly how much state and federal governments take away from small business owners.

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Only those businesses that can somehow afford or justify the malevolent leftists practices by governments towards business will agree to bring their business in that area.

citizenthom said:

Only corporations pay the corporate tax rate. Sole proprietors and general partners pay income taxes at the same rate as individuals. And most states tax businesses in other ways, like a special partnership tax, licenses, state corporate taxes, etc. People really have no concept of exactly how much state and federal governments take away from small business owners.

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Proverbs 26:1 is like the definition of insanity, doing the same thing over and over expecting a different result.

No, it more like everyone gets the first beer free. The next beer would be $1. The third beer would be $2 ($3 for total bill), the fourth $4 ($7 total), the fifth $5 ($12), the sixth $6 ($18) and the seventh $7 ($26) and every beer over seven would also be $7 and the bill would then depend on how many beers were drunk by that man.

aisy_Day said:

No, it more like everyone gets the first beer free. The next beer would be $1. The third beer would be $2 ($3 for total bill), the fourth $4 ($7 total), the fifth $5 ($12), the sixth $6 ($18) and the seventh $7 ($26) and every beer over seven would also be $7 and the bill would then depend on how many beers were drunk by that man.

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The beer, represents government services. Tax payers don't pay for those on a per use basis. I wish they were like that though.
I'd love to see people get a bill for bombing Libya, or be forced to pay 12,000 a year for their child to attend whatever crap school their in.
Things would change fast.

KarateCowboy said:

That fails the First Law of Economics: There is no such thing as a free lunch.

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Hoooold on to your horsey there pardner! If it weren't for free lunches there'd be no left, no progressivism, no - socialism!

Um, I think aisy_Day understands that concept guys. When a bar (or government) offers you a "free" drink do you stand there and pontificate?

Notamonkey said:

As soon as someone talks about being fair I know things are gonna get less fair.

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Not if you and they define "fair" the same.

aisy_Day said:

No, it more like everyone gets the first beer free. The next beer would be $1. The third beer would be $2 ($3 for total bill), the fourth $4 ($7 total), the fifth $5 ($12), the sixth $6 ($18) and the seventh $7 ($26) and every beer over seven would also be $7 and the bill would then depend on how many beers were drunk by that man.

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Hm, that system would discourage people from getting too drunk.

As for the video, it contradicts itself. It says that the men decided to pay the $80 bill the same way they payed the $100 bill, and then they complain that their system is unfair because it is not divided in a way they agreed they would not do.

Oh, and beer and government services are not the same. Somehow I don't think that a poor person benefits as much as a rich person from our police force, for example. Or from our roads. Or from defending our country. Or patent/copyright laws.