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View Diary: TDPS: Economist Richard Wolff Destroys "Bar Stool Economics" (11 comments)

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  •  You both miss the real debunking point... (2+ / 0-)
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    ogre, yoduuuh do or do not

    As an analogy for the progressive tax system, you need to point out that the bar stool scenario shows that every person in the bar is asked to pay the same proportional price for a beer.

    The drinker who makes $100 a week pays $1 for the beer (1% of their income.) The drinker who makes $1000 a week pays $10 for the beer (1% of their income). Proportionally, each is paying an IDENTICAL price based on the reduction of their income resources.

    That's how the income tax system is supposed to work. Yes, rates rise as income rises, but as Warren Buffet has often pointed out, the exemptions and shelters available to the wealthiest Americans means that he pays a SMALLER percentage of his income in taxes than does his secretary.

    In the unlikely story that is America, there has never been anything false about hope. -- Barack Obama

    by HuskerBlue on Thu Dec 16, 2010 at 09:17:36 AM PST

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