ALLEGHENY COUNTY REPUBLICANS

Article from 1999 - MUST READ!

2008-10-10T09:49:00.001-07:00

September 30, 1999

Fannie Mae Eases Credit To Aid Mortgage Lending
By STEVEN A. HOLMES

In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.
The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans.. Fannie Mae officials say they hope to make it a nationwide program by next spring.
Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.
In addition, banks, thrift institutions, and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates -- anywhere from three to four percentage points higher than conventional loans.
''Fannie Mae has expanded home ownership for millions of families in the 1990's by reducing down payment requirements,'' said Franklin D. Raines, Fannie Mae's chairman and chief executive officer. ''Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.''
Demographic information on these borrowers is sketchy. At least one study indicates that 18 percent of the loans in the subprime market went to black borrowers, compared to 5 per cent o f loans in the conventional loan market.
In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. However, the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's.
''From the perspective of many people, including me, this is another thrift industry growing up around us,'' said Peter Wallison a resident fellow at the American Enterprise Institute. ''If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.''
Under Fannie Mae's pilot program, consumers who qualify can secure a mortgage with an interest rate one percentage point above that of a conventional, 30-year fixed rate mortgage of less than $240,000 -- a rate that currently averages about 7.76 per cent. If the bo rrower makes his or her monthly payments on time for two years, the one percentage point premium is dropped.
Fannie Mae, the nation's biggest underwriter of home mortgages, does not lend money directly to consumers. Instead, it purchases loans that banks make on what is called the secondary market. By expanding the type of loans that it will buy, Fannie Mae is hoping to spur banks to make more loans to people with less-than-stellar credit ratings.

Palin-Biden VP Debate

2008-10-04T05:43:00.001-07:00

Full Version of Debate

Palin and Obama Talks (opinion)

2008-10-02T15:54:00.000-07:00

A discussion occurred today between myself and a staunch Democrat about the Vice Presidential debate. I have known this person for a few years, and we sometimes agree, but other times disagree. However, we always have the best interests of the citizenry at heart. Here are the topics we talked about:

1. He said how unfortunate it would be if Palin ended up in the Presidency, because she doesn’t have any experience.
Here are the facts: Palin served in city council twice; was elected mayor for two terms; and served as governor after 2006. Sound familiar? It should be because the Democrat candidate for President is Barack Obama, and this is his experience: elected to Illinois state senate in 1997, and then to the US senate in 2006. I have to admit I think she has more experience than Barack Obama.

2. He also felt Palin should be more concerned with her family and the time this position will take away from them.
Aside from this being chauvinistic on the part of my Democrat friend, Barack Obama has two young daughters, and the same argument could be made. He wouldn’t agree that Obama should be more concerned with his family, even after saying Palin ought to be.

You can’t top McCain’s experience, so everyone will try to go after Palin. We will find out tonight at 9pm how well Palin does against Biden in the debate to gauge how the American public will react in the polls.

McCain Clip

2008-09-30T18:22:00.000-07:00

The Man in the Arena

First Presidential Debate

2008-09-30T16:06:00.000-07:00

McCain and Obama

Economic Status (opinion)

2008-09-30T15:12:00.000-07:00

There are many questions surrounding the recent $700 billion bailout plan, and more importantly, where our economy is heading. I will try to explain as correctly as possible, but my response involves my own forecasting. The main catalyst to our current economic condition is the housing bubble bursting, which some have contributed vaguely to the .com bubble remnants and rapid increases in the cost of energy.

The value of homes, in certain high growth areas, increased too rapidly; this did not happen in Pittsburgh, which is why we are considered to be isolated from the financial problems occurring in Phoenix, for example. To fund the purchase of homes, mortgage backed securities were offered at value X. With the value of homes growing, X kept growing in value to Y. For example, we could say home prices usually increase in value at 3% yearly rates, but over the years, this rate has been much higher, say 20%. Soon enough, our hopes were introduced to reality, and the market began to adjust according to the law of supply and demand. Hence, the value of these securities dropped to Z, and the debt that now exists can be identified by Y-Z. The government proposed the $700 billion bailout to help cover the Y-Z debt which now exists in the marketplace. Regardless of how we look at it, government is looking to save financial companies from further destruction. The goal is to hold on to this Y-Z debt long enough for it to appreciate at the HEALTHY 3% until the value Y is reached again, or until a higher value, say Y+A is reached (this would be best case scenario).

The immediate impact to such a bailout would be the decrease in the value of the dollar, but continued economic trouble will continue for another year, or longer. We have to look at the longer term solutions and effects as well. We were over confident on our economic future since the 1990’s when the tax increase which cost President Bush his 1992 re-election began to balance out government spending. Now, the American citizenry has low confidence in our future; any solutions must address continued government deficits and any other factors which influence consumer confidence. Therefore, our steps have to be as follows: 1) lower taxes; 2) cut spending; 3) obtain significant progress in energy independence; and the least attractive but necessary 4) approve a (not ‘the’) bailout plan for the people. While not a quick fix, an increase in our population over the next 10 years would help (this is a story for another day).

The bailout plan, similar to FDR’s increased government spending on infrastructure, is something which can get the economy started, but passing it too quick can spell disaster and emotional reaction, rather than success and a proactive prevention for possible future occurrences.

Teleprompter goes down on Obama

2008-09-29T18:33:00.000-07:00

Ouch...

Weekly Thought #6 (opinion)

2008-09-21T07:32:00.001-07:00

The French Revolution occurred over 200 years ago, but its message will always be remembered. This period gave truth to the phrase, “taxation without representation.” 97% of the population were considered the lowest class of society; in other words, they were known as the peasants and working class. However, the region seem to be controlled by the rich and royal, who made up only three percent of the population. The government of France had a branch for each class of citizens, with each getting an equal vote. Two of the classes were made up of this three percent, and therefore would always pass measures which favored them; their two votes always outnumbered the one vote that the other 97% was given. What we learned from the Revolution was power exists in numbers; people need to take responsibility for their future; and a political system that doesn’t promote the general welfare is subject to dismissal and disposal, not by the rich, but by the numerous. Although I am not an economist by profession I do consider myself one by interest. I support free markets and low taxes on businesses, but remain worried about the accumulation of so much wealth in shrinking numbers of people. We are witnessing more going to work out of necessity rather than by choice. The middle class is increasingly burdened, and the lower class stuck. Politicians promise change, but we don’t get the delivery. So, who is accountable for these problems we are facing as a nation? Is it our school systems? Is it our employers? Is it our tax structure? Is it our government? Or is the problem ourselves, and our growing lack of organization, community, and human relations? We have blamed others for so long, and it hasn’t worked. Let us start somewhere else and begin blaming ourselves because if we place blame close enough to where we have control over actions, the change we seek isn’t that much further. I blame myself if I waste my time watching televeision rather than watching the local school band. I blame myself if I buy fast food rather than cooking dinner and eating with the family. I blame myself if I support a lottery rather than the local fundraisers. I blame myself if I make an enemy far easier than I make a friend. I blame myself, and that is the first step, Now blame yourself, and we are getting there.

Obama Uh Count

2008-09-16T18:41:00.000-07:00

Funny segment from David Letterman

Weekly Thought #5 (opinion)

2008-09-05T09:11:00.000-07:00

Lee Iacocca, former Chrysler CEO, used to work for a department store washing glass doors in his early years. He displayed some frustration over those who pushed open the door with their hand on the glass, rather than use the handle, and it was often done while he was just finishing cleaning. Therefore, not even two minutes later, there would be smudges. To this day, Lee always uses the handle to avoid causing someone else his frustration.
We could argue this is the employee’s job, and what he or she gets paid to do. However, the point I will make is bigger than that question, and we all know the custodian gets paid in part to clean, but it doesn’t mean we trash the facility. There are opportunities everywhere to, if not make someone’s job easier, at least not to make it harder. Perhaps there is more to the story, and maybe we shouldn’t be discussing going the extra mile to decrease someone’s workload, but how to recognize those who excel in their role, and how they went the extra mile for us.
We are all emotional, and it is common to display our disgust but quick to overlook the exceptional service and product. Most of us have someone who supervises our responsibilities, and even if we didn’t, we still are comforted when we know someone has noticed our performance. Basically, it doesn’t take an army to commend someone on a job well done. I was always taught to discipline verbally, but praise in writing. This doesn’t demand much of our time; the time you spend is going to make another person’s day better. This is the belief in the butterfly effect: your actions, no matter how small, can make a big difference. Next time you are satisfied with a good or service, ask for a supervisors name and address. You can talk to them directly, but always send follow up letters to the person responsible, and their boss, about your happiness.
This is one of those things we can do to help others. It may not be the cure to cancer or food for the hungry, but small steps help the long journey, and we can’t reach our goal if we don’t start somewhere.

Melissa Hart - Congress

2008-09-02T18:26:00.000-07:00

2008 Video - Melissa Hart

Eisenhower Quote

2008-09-01T18:55:00.000-07:00

God help any man who sits behind this desk who doesn't know the military like I do.

Weekly Thought #4 (opinion)

2008-08-25T16:29:00.000-07:00

We are creatures of habit, and when we get comfortable with a routine, we tend to resist change. When presented with a situation unfavorable to us, and one which makes us disgusted, almost to the point of hatred, and more importantly, one that threatens the very existence of our well being, we don’t hesitate to act. If the effects are minimal however, and not catastrophic, ignorance is suitable. We didn’t realize global warming was occurring until we started to see the temperatures rise. However, these tiny and slow changes may result in larger snowballs with the possibility of damage and irrevocable harm at a time when it is too late to rectify.
In some distinct instances, rather than rely solely on hesitation, we are forced into action, without worry of consequences to ourselves. We have seen it with Pearl Harbor and the 9/11 tragedies. Certain events inspire us to a greater good and common cause. There are occurrences which are easily identifiable because they are visual, broadcasted, televised and require little effort for discovery. Then, there exist other events that are happening which we do need our exertion to unveil, and I argue these are equally important because if we do nothing, we subject ourselves to the uncontrollable actions of unrestrained and reckless individuals or groups. I would further recommend such a situation is underway and if we fail to act, we are destined for failure. It s our inaction which poses a threat, so our instinct to act becomes even more vital.
I don’t say these things because I worry for own selfish purposes, but due to my concern friends, family and community. Pennsylvania is a great state, and our local municipalities are instrumental to the overall big picture. Sitting idly by while we continue on a path of destruction, and to increase the likelihood of harm to residents, is not a desire of ours.
We can make a difference; we can feel safer; we can improve our learning; we cane lower taxes; we can live better; we can care more; we can, but we need government to help, and not contribute to the problem. This is not a Republican issue; this is not a democrat issue; this is our issue. Come Election Day, I am not supporting a party; I am supporting someone who represents the brightness of a future I grew up believing in, and a future my parents told me was possible in America.

Weekly Thought #3 (opinion)

2008-08-17T08:10:00.000-07:00

I, like most of us, am a hard worker. I wouldn’t consider myself a wealthy person and at my age of 25, I don’t know if am working to define myself as wealthy, at least in terms of how we correlate wealth and money. However, I don’t hold grudges against those who strive for riches as this country is based on a capitalist system.
Five years ago, it may have been a different story. I was going to college, with hopes of driving that brand new car; talking on the most popular cell phone; owning the newest electronics; living in the big house; and belonging to that prestigious country club (although I still love golf, and may aspire to joining a golf course when I have more time). When I graduated college, I had a great job that allowed me those items I fancied, but could never afford. The irony is my level of joy didn’t increase and these objects never brought me the satisfaction I anticipated. Lesson learned: money didn’t bring me happiness (and yes, the lack of money can bring misery, but I am not going to dive into that topic).
The plasma flat screen TV may be nice to watch a Sunday football game but it doesn’t define who I am, and any one object shouldn’t define who any of us are. The events which I deem best are the birth of my two nephews; spending time with family who I don’t get to see all as much as I would like; bringing a smile to my girlfriend’s face; volunteering and donating to help the betterment of society; and as cliché as it sounds, knowing I, in some way, am making a positive difference in this world (regardless of how small and minute a difference).
I admit I never gave much thought to people standing outside the grocery stores asking for a donation to the cheerleaders; sending a check to the volunteer fire fighters; spending money on a car wash for softball; or anybody for that matter who was working to support a good cause. It wasn’t greed that motivated me away from these fundraisers; I really didn’t think I could afford to hand off my earnings. Those of you who know me understand I am the first to attack the high taxes or bad government decisions. However, the money government takes from us doesn’t end up where it can be used most. We see these political scandals and inefficient spending by our representatives, and we walk right by the band members who don’t get enough school funding to stay afloat. The solutions needs to be addressed on two ends: 1) we have to hold government accountable; and 2) we have to help out community members.
For those not accustomed to donating, and don’t be offended because I wasn’t, the best advice is to set aside 1% - 2% of your earnings for charitable purposes. My disposable income is limited, and I am not left with much after taxes, rent, car payment, insurance, bills and fuel. 1 dollar a day, set aside for a better cause, can make enough of a difference. Using change that you accumulate around your house is another way to give back to your community. It may be an unusual feeling at first; after the first few donations or volunteer hours, it gets easier and arguably addicting after awhile. As Randy Pausch (CMU professor and inspiration) stated, if you bring good to others, it eventually comes full circle.

Vote Greg Hopkins

2008-08-13T04:53:00.000-07:00

Here is an editorial for Greg Hopkins. Find out more about the challenger to Bill Deweese: http://www.votegreghopkins.com/

We sometimes find ourselves sitting on the porch, staring at the approaching storm. Perhaps we didn’t see it coming, or we come to the realization that we didn’t have any control to stop it. We will watch the heavy rains, listen to the thunder, and be surprised by the lightning. As we witness the conclusion of the storm, we are left breathless as the sun begins to push through the dark clouds. No longer do we feel wet, for we are dry; no longer are we cold, for we are warmed by the rays; and no longer are we nervous, but relaxed.
As I write this, I am reminded of our political landscape over the years in Pennsylvania. The storm has been long, damaging and we didn’t see it coming. However, there lies an important difference in the political storms we encounter: we are now given the chance to prevent and stop this unwarranted political corruption. Pennsylvania Residents deserve better education, not higher taxes; the same residents deserve affordable healthcare, not increased government control; and residents deserve a public servant, not a public scandal.
We no longer are left only to watch the storm, but are now allowed to act. We have the chance to let the sun shine through, and burn off the storm; we can only do this by voting in Greg Hopkins.

Weekly Thought #2 (opinion)

2008-08-11T05:00:00.000-07:00

Another group emerges to fight the battle for rising taxes - Citizens Against Raising Taxes on Property (CARTOP)! This one is in addition to the already formed FACT (Friends Against Counterproductive Taxes-FACT). CARTOP formed to counterbalance the opponents of the drink tax. What is odd about this new group is they are for the drink tax if it means no rise in property taxes. FACT is against rising taxes altogether. It seems this new group does exactly what we expect: it forms to protect its very specific interest. We all have heard the saying, “divided we fall,” yet rather than join FACT, which would be the wiser choice since power comes with numbers, CARTOP seems to be against it. Imagine the increased influence the two groups would have if together they opposed the new tax together? Rather than bickering about which tax to raise, we should be looking at opposing all unsound tax raises. Perhaps these two could have sent a resounding voice that begins to promote a government which works within the boundaries of a budget. Perhaps they could have told Onorato that we want to live here, but we are not going to accept further depletion of our life savings. Perhaps we could stay here if it was economically feasible to do so.
However, that would make logical sense, and we know how rare that is to find. If common sense was abundant, we wouldn’t be faced with a casino lacking a financing plan to finish. Ravenstahl and Onorato met with Barden a month ago, and they informed their citizenry they have faith in Barden and his credit. Take it for what its worth, but we are talking about two democrats who met with a gentleman responsible for financing thousands of dollars in political campaigns. This Barden fellow gave $10,000 to the Philadelphia Mayor before the gambling legislation was introduced. So, while this is not a republican/democrat issue, it is a point worth making: our leadership had faith in Barden, but the same leadership is the one who says that same faith should be put into Bluhm. My humble opinion is our officials want the casino built as fast as possible, without a focus on doing the right thing, the first time around.
Before the amendment was passed to have our Senators directly elected by their constituents, corruption and corporations ruled the 90 Senators at the time. This was also during the time period when votes on specific bills were not recorded. It wasn’t until after the amendment passed when accountability was implemented to get the citizens the legislation they were promised during election time by their elected representatives.
With groups which should have cohesion, a casino that can’t be built correctly, leadership who seems to ride the waves rather than stay ashore, and corruption bleeding from the very heart of our state, we continue to sit in the passenger seat hoping the car is going the right direction.
America was built with the hands, hearts, and sweat of our elders and ourselves. John F. Kennedy wanted Americans to give back to their country, and his message is one I would support. However, I think he knew hope alone doesn’t feed out families, as much as Obama or any president wants it too.

Weekly Thought #1 (opinion)

2008-08-11T04:44:00.001-07:00

After reading the history behind the Unites States’ Constitution, the overwhelming amount of time committed by the framers to make certain we avoided a property tax was discussed in detail. Many people came to America to escape from religious persecution and high taxes; we still have freedom of expression, but the high taxes… well, 50% success is ok, right? No, it is not ok and when did we start to accept mediocrity? We used to demand perfection, but we have learned to settle for government bureaucracy that passes special interest legislation because the silent majority accepts, rather than rejects. Corruption mounts in our state legislature, yet we will probably vote in the same people because they have a ‘D’ or ‘R’ in the front of their name on the ballot. We sit idly by as our liberty is slowly chiseled away; we will work our 40 hours a week, but embrace the 35% of our income that is taken away before we even get our money. Then, we get hit again with a tax which isn’t a property tax at all, but an asset tax. Remember, you are not paying for what your land is worth; you are paying for your land, and also how much your home is worth. Want to improve your home? Go ahead, but some authority needs to approve that construction, then another official wants to reassess the value of your home, and the last one wants to make you pay a higher tax for it. So, 200 years ago we would consider a property tax to be illegal and rebellion would ensue. Nowadays, we fund that which lawmakers decide we should finance; forget efficiency and effectiveness because we can always raise taxes on the people. Apparently, lawmakers are experts at running businesses; I guess 3 years of law school and 5 years in a courtroom qualify you to make a decision on how to manage. Our democracy is the greatest, but it has only been great because it was participative. With the lack of concern for our communities, we are letting our government think for themselves, or better yet, their thinking is done by the people who send them the donations (PA has no real campaign finance limits – pay to play). The question remains: who do we blame? The officials we elect and empower, or do we blame ourselves? For your information, I am pointing the finger at myself. I know we as individuals are to blame because of that faint feeling we have; the one which tells us, ever so quietly, that something is wrong with the system, and it isn’t going away.

SHERIFF JOE IS AT IT AGAIN!

2008-06-27T05:08:00.000-07:00

Maricopa County was spending approx. $18 million dollars a year on stray animals, like cats and dogs. Sheriff Joe offered to take the department over, and the County Supervisors said okay.
The animal shelters are now all staffed and operated by prisoners. They feed and care for the strays. Every animal in his care is taken out and walked twice daily. He now has prisoners who are experts in animal nutrition and behavior. They give great classes for anyone who'd like to adopt an animal. He has literally taken stray dogs off the street, given them to the care of prisoners, and had them place in dog shows.
The best part? His budget for the entire department is now under $3 million. Teresa and I adopted a Weimaraner from a Maricopa County shelter two years ago. He was neutered, and current on all shots, in great health, and even had a microchip inserted the day we got him. Cost us $78.
The prisoners get the benefit of about $0.28 an hour for working, but most would work for free, just to be out of their cells for the day. Most of his budget is for utilities, building maintenance, etc. He pays the prisoners out of the fees collected for adopted animals.
I have long wondered when the rest of the country would take a look at the way he runs the jail system, and copy some of his ideas. He has a huge farm, donated to the county years ago, where inmates can work, and they grow most of their own fresh vegetables and food, doing all the work and harvesting by hand. He has a pretty good sized hog farm, which provides meat, and fertilizer. It fertilizes the Christmas tree nursery, where prisoners work, and you can buy a living Christmas tree for $6 - $8 for the Holidays, and plant it later. We have six trees in our yard from the Prison.
Yup, he was reelected last year with 83% of the vote.
Now he's in trouble with the ACLU again. He painted all his buses and vehicles with a mural, that has a special hotline phone number painted on it, where you can call and report suspected illegal aliens. Immigrations and Customs Enforcement wasn't doing enough in his eyes, so he had 40 deputies trained specifically for enforcing immigration laws, started up his hotline, and bought 4 new buses just for hauling folks back to the border. He's kind of a 'Git-R Dun' kind of Sheriff.

TO THOSE OF YOU NOT FAMILIAR WITH JOE ARPAIO, HE IS THE MARICOPA ARIZONA COUNTY SHERIFF, AND HE KEEPS GETTING ELECTED OVER AND OVER.
Sheriff Joe Arpaio (In Arizona ) who created the ' Tent City Jail': He has jail meals down to 40 cents a serving and charges the inmates for them.
He stopped smoking and porno magazines in the jails. Took away their weights Cut off all but 'G' movies.
He started chain gangs so the inmates could do free work on county and city projects.
Then He Started Chain Gangs For Women So He Wouldn't Get Sued For Discrimination.
He took away cable TV Until he found out there was A Federal Court Order that Required Cable TV For Jails So He Hooked Up The Cable TV Again Only Let In The Disney Channel And The Weather Channel.
When asked why the weather channel He Replied, So They Will Know How Hot It's Gonna Be While They Are Working ON My Chain Gangs.
He Cut Off Coffee Since It Has Zero Nutritional Value.
When the inmates complained, he told them, 'This Isn't The Ritz/Carlton.....If You Don't Like It, Don't Come Back.'
He bought Newt Gingrich's lecture series on videotape that he pipes into the jails.
When asked by a reporter if he had any lecture series by a Democrat, he replied that a democratic lecture series might explain why a lot of the inmates were in his jails in the first place.
More On The Arizona Sheriff:
With Temperatures Being Even Hotter Than Usual In Phoenix (116 Degrees Just Set A New Record), the Associated Press Reports:
About 2,000 Inmates Living In A Barbed-Wire-Surrounded Tent Encampment At The Maricopa County Jail Have Been Given Permission To Strip Down To Their Government-Issued Pink Boxer Shorts.
On Wednesday, hundreds of men wearing boxers were either curled up on their bunk beds or chatted in the tents, which reached 138 Degrees Inside The Week Before.
Many Were Also Swathed In Wet, Pink Towels As Sweat Collected On Their Chests And Dripped Down To Their PINK SOCKS.
'It Feels Like We Are In A Furnace,' Said James Zanzot, An Inmate Who Has Lived In The TENTS for 1 year. 'It's Inhumane.'
Joe Arpaio, the tough-guy sheriff who created the tent city and long ago started making his prisoners wear pink, and eat bologna sandwiches, is not one bit sympathetic. He said Wednesday that he told all of the inmates: 'It's 120 Degrees In Iraq And Our Soldiers Are Living In Tents Too, And They Have To Wear Full Battle Gear,
But They Didn't Commit Any Crimes, So Shut Your Mouths!'
Maybe if all prisons were like this one there would be a lot less crime and/or repeat offenders. Criminals should be punished for their crimes - not live in luxury until it's time for their parole, only to go out and commit another crime so they can get back in to live on taxpayers money and enjoy things taxpayers can't afford to have for themselves.
Sheriff Joe was just reelected Sheriff in Maricopa County, Arizona

Our Tax System Explained: Bar Stool Economics

2008-06-19T05:13:00.000-07:00

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. "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 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 roughly the same amount, and he proceeded to work out the amounts each should pay.

And so:
The fifth man, like the first four, now paid nothing (100% savings).
The sixth now paid $2 instead of $3 (33%savings).

The seventh now paid $5 instead of $7 (28%savings).
The eighth now paid $9 instead of $12 (25% savings).
The ninth now paid $14 instead of $18 (22% savings).
The tenth now paid $49 instead of $59 (16% savings).

Each of the six was better off than before. And the first four continued to drink for free. But once outside the restaurant, the men began to compare their savings.

"I only got a dollar out of the $20,"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 than I got"

"That's true!!" shouted the seventh man. "Why should he get $10 back when I got only two? The wealthy get all the breaks!"

"Wait a minute," yelled the first four men in unison. "We didn't get anything at all. The 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 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, ladies and gentlemen, journalists and college professors, is how our tax system works. The people who pay the highest taxes 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.

2008-06-19T05:07:00.001-07:00