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To: energyplay who wrote (50861)6/10/2004 4:57:06 AM
From: elmatador  Read Replies (4) | Respond to of 74559
 
Why tax cuts are not fair

My Danish friend says:

One of the more entertaining explanations for the above statement is the
story about the 10 people who every day spends their lunchbreak in the
same restaurant. They split the bill (which everyday is aprox 1000 dkr)
in the same way as we pay taxes here in Denmark.

The first 4 - the ones with the lowest income - do not have to pay
anything. The 5th pays 10 dkr, the 6th 30 dkr, the 7th 70 dkr, the 8th
120 dkr, the 9th 180 dkr and the 10th - the one with the highest income
of them all - pays 590 dkr.

So it goes on day in and day out. Everybody is happy with the
arrangement. Then one day the owner af the restaurant decides to give
them a discount.

"Because You are very good customers I will give You a 200 dkr discount
on Your meals". Then the daily price goes down to 800 !

The group decides that they will continue to split the bill the same way
as before. So the first 4 still do not have to pay anything. But what
about the others - those who are paying - how should they share the
discount so they all can have ab equal part ?

200 divided by 6 is 33,33 and if they subtract that from every persons
share, the 5th og 6th person will have to be paid to eat !

The owner of the restaurant suggest that the most fair solution will be
to give the discount as a percentage and starts calculating.

The result is now that also the 5th and 6th person will eat fro free,
the 7th pays 50, the 8th 90, the 9th 120 and the 10th now pays 520.

All six now has a lower price than earlier and first four are still
eating for free.

They are standing outside the restaurant and then one of them start to
compare how much each and every one of them has saved. "I only got 10 of
the 200" the 6th says and points at the 10th "But You got 70".
"Exactly" the 5th says "I too only saved 10 - It is not fair that he got
7 times more than me"
"That's true" the 7th person said "Why do You get 70 when I only get 20?
The rich always get more".

"Hey wait a minute!" the first 4 say "We didn't get anything at all !
This system is exploiting the poor".
The first 9 start beating up No 10 before they leave.

The nest day he (the 10th) doesn't even show up for dinner but the other 9 sat
down to eat without waiting for him. When the bill comes they discover
something important

They are 520 dkr short



To: energyplay who wrote (50861)6/10/2004 1:38:42 PM
From: NOW  Read Replies (1) | Respond to of 74559
 
empirical info?