by Paul Caven
I would like to comment on the article posted on December 22 titled "Our Tax System (as explained using Starbucks Coffee). Obviously Dr. Kamerschen’s analogy is less about our actual tax system and more about the social and moral dilemma of a hypothetical $20.00 windfall. How should we divide the money? Dr. Kamerschen’s figures all add up. They make perfect sense… dollars and cents. The only problem with his theory is that all those poor people who were ‘beating up’ the poor rich guy have a point. This $20.00 was not a "rebate" from Starbucks. Starbucks didn’t say, "Hay you guys paid me $100.00 but I’m going to give you a rebate of $20.00 because you’re such great customers." If that were the case then Dr. Kamerschen’s scheme works. The "rebate" should only go to those who paid. But he describes it as a "windfall’. A windfall by definition is described as "an unexpected or sudden gift". Why shouldn’t we share our gifts with our less fortunate friends? I submit an alternate solution:
The fifth man, like the first four, still pays nothing (100% savings), AND each receives a $4.00 benefit/stimulus to spend at the grocery store or Starbucks.
The sixth now pays $4 instead of $3 (Well, we needed to do that to help the fifth guy).
The seventh now pays what he paid before $7 instead of $5.
The eighth now pays what he paid before $12 instead of $9.
The ninth now pays what he paid before $18 instead of $14.
The tenth now pays what he paid before $59 instead of $49.
The top four wage earners are no worse off than before and they have the persona satisfaction of knowing they helped people in need.
The next few years are going to be trying times for our society. We are going to have tc make some tough choices. Let’s not vilify the poor. We’re all in this together, let’s help each other.
