Now that we all are aware about the DIRECT TAX CODE that is to come on India's poor husbands, a story on a lighter note that explains a lot about the ways to tax reforms on poor husbands..... Enjoy.............. Understand.. and.. a must read for all budding economists husbands here.
The summation is a classic way to put things in perspective.
Suppose that every day, ten husbands go out for beer and the bill for all ten comes to Rs. 4,600/-
If they paid their bill the way aam adami pays his taxes, it would go something like this..........
The first four husbands (the poorest) would pay nothing.
The fifth would pay Rs. 46/-
The sixth would pay Rs. 138/-
The seventh would pay Rs. 322/-
The eighth would pay 552/-
The ninth would pay Rs. 828/-
The tenth husband (the richest) would pay Rs. 2,714/-
So, that's what they decided to do.
The ten husbands drank in the bar every day and seemed quite happy with the arrangements, until one day, the owner threw them a curve ball.
"Since you are all such good customers," he said, "I'm going to reduce the cost of your daily beer by Rs. 920/-". Drinks for the ten husbands would now cost just Rs. 3,680/- !
The group of bechara husbands still wanted to pay their bill the way aam adami pay his taxes.
So the first four husbands were unaffected.
They would still drink for free. But what about the other six husbands?
The paying customers?
How could they divide the Rs. 920/- windfall so that everyone would get his fair share?
They realised that Rs. 920/- divided by six is Rs. 153.33/- But if they subtracted that from everybody's share, then the fifth husband and the sixth husband would each end up being paid to drink his beer.
So, the bar owner suggested that it would be fair to reduce each Husband’s bill by a higher percentage the poorer he was, to follow the principle of the tax system they had been using, and he proceeded to work out the amounts he suggested that each should now pay.
And so the fifth husband, like the first four, now paid nothing (100% Saving).
The sixth now paid Rs. 92/- instead of Rs. 138/- (33% saving).
The seventh now paid Rs. 230/- instead of Rs. 322/- (28% saving).
The eighth now paid Rs. 414/- instead of Rs. 552/- (25% saving).
The ninth now paid Rs. 644/- instead of Rs. 828/- (22% saving).
The tenth now paid Rs. 2,254/- instead of Rs. 2,714/- (16% saving).
Each of the six husband's was better off than before. And the first four husband's continued to drink for free. But, once outside the bar, the husband’s gang began to compare their savings (obviously na).
"I only got Rs. 46/- out of the Rs. 920/- saving," declared the sixth husband.
He pointed to the tenth husband “but he got Rs. 460/-!"
"Yes, that's right," exclaimed the fifth husband. "I only saved Rs. 46/- too. It's unfair that he got ten times more benefit than me!"
"That's true!" shouted the seventh husband. "Why should he get Rs. 46/- back, when I got only Rs. 92/-? The wealthy husband gets all the breaks!"
"Wait a minute," shouted the first four husbands in unison, "we didn't get anything at all. This new tax system exploits the poor and is a oppressive binding by Judiciary on us !"
The nine husbands surrounded the tenth and beat him up.
The next night the tenth husband didn't show up for drinks, so the nine sat down and had their 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 their usual beer bill !!!!!
And that, errant wife's and so called smarty husbands vis-à-vis Ministry of Women and Child Development / National Council of Women is how our tax system works.
The husbands who already pay the highest taxes will naturally get the most benefit from a tax reduction when it comes to ‘compensation” funda.
Tax them too much, attack them for being wealthy, squeeze their wealth for “compensation” of their errant wife's and they just may not show up anymore in Hon'ble Courts.
In fact, they might start drinking overseas, where the atmosphere is somewhat friendlier since their “compensation” is based on “no fault” theory in practice.
For those who understand, no explanation is needed.
For those who do not understand, no explanation is possible.
Amen………
