WHAT I WANT IS LOTS OF STIMULATION
Published January 07, 2003
"Since you are all such good customers," he said, "I'm going to reduce the cost of your daily meal by $20." So now dinner for the ten only cost $80.00.
The group still wanted to pay their bill the way we pay our taxes.
So the first four men were unaffected. They would still eat for free. But what about the other six — the paying customers? How could they divvy up the $20 windfall so that everyone would get his "fair share?"
The six men 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 end up being PAID to eat their meal. So the restaurant 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 paid nothing, the sixth pitched in $2, the seventh paid $5, the eighth paid $9, the ninth paid $12, leaving the tenth man with a bill of $52 instead of his earlier $59. Each of the six was better off than before. And the first four continued to eat 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, but he, pointing to the tenth. "But he got $7!". "Yeah, that's right," exclaimed the fifth man, "I only saved a dollar, too, ........ It's unfair that he got seven times more than me!". That's true!" shouted the seventh man, why should he get $7 back when I got only $2?" 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 he didn't show up for dinner, so the nine sat down and ate without him. But when it came time to pay the bill, they discovered, a little late what was very important. They were FIFTY-TWO DOLLARS short of paying the bill! Imagine that!
And that, boys and girls, journalists and college instructors, is how the 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 at the table anymore. Where would that leave the rest?
Well clearly the rich aren't going to stop paying taxes BUT that doesn't mean they won't become tight with their dough when it comes to service industry expenditures. The extras are the things we cut out when we are facing an economic crisis, and the extras are what this country thrives on. Surely there must be a way to encourage the rich to keep spending and help the middle class have a few extras. And what would the poor have if the rest of us didn't make money and pay taxes? I imagine even less.
Dawn's blog is Up Yours and More helpful Tips, read it here.
- WHAT I WANT IS LOTS OF STIMULATION
- Published: January 07, 2003
- Type:
- Section: Culture
- Writer: Dawn Olsen
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Comments
Speaking of the gratuity system, do you include or exclude the tax from your gratuity calculations?
I exclude the tax - and I also try to leave cash tips when paying by credit card so they can pocket all of it.
Andy is correct on both counts.
Wow, I haven't seen anything this interesting since the last time I saw two evangelical Christians arguing over whether to tithe on gross income or net income (the answer, incidentally, is "If you win $170 million in PowerBall, definitely 'net'")!
I've always tithed, I mean tipped on the total check, including tax. What a chump I've been! At 8.25% sales tax (or 7.25%, depending on which part of town I'm in), I could have been saving about $1.65 out of every $100 spent! (I'm a 20% tipper normally.)
Thanks!
BTW, nice article, Dawn. The pedant in me is struggling, wanting to point out that the nine remaining diners probably wouldn't spend the same amount on dinner as the ten did, and in fact it is quite likely that the tenth diner spent a little more of the total than the others, but I've managed to restrain that part of me with another part of me pointing out that thanks to the Earned Income Tax Credit, the poorest one or two diners quite possible got change back every night after paying nothing for dinner.
Whew! Anyway, great story. Someday I expect to be either the first or at least the second diner, so I appreciate your future support. 8^)
I tipped on the total until my bartender friend pointed out that the government had nothing to do with the quality of my service. I typically go 20% also if the service is good, rarely below 15%. If you really want to save, go to Japan where they still don't tip much at all.


Dawn Olsen is a veteran blogger who proudly supports the guy who publishes this awesome site. She's also an avid reader of high quality tabloid fare, enjoys gardening and scatological skywriting.





Excellent job of making macro theory personal and micro. Next you should address the whole gratuity system.