Oops you earn too much.

Among the best things that can happen thru chain mails is that once in a blue moon you one can get a pearl or an absolute diamond... listed below is my recollection of 1 such mail, which sounded better in the original chain.

An economics professor explaining the concept of taxation and tax breaks to the poor to his rapt attentive class....
9 men used to meet at a specific pub every day for their group beer session, of the nine 2 were in the rich category, 3 in the middle income category and 4 in the poor category. Considering their differences in income they decided to split the bill of $ 9 thus. the rich 2 pay $ 3 each and the middle 3 pay $ 1 each. The poor 4 being poor were allowed the luxury of having their drink free. This seen as a fair arrangement continued for quite some time. Considering that the 9 were his long time customers the pub decides to provide them with a discount of 10% on their beer. This 10 % was split based on the contribution of the individual, resulting in a 30p discount per rich guy and a 10p discount per middle income guy. based on the new arrangement, the poor felt cheated that they didnt gain anything from the discount, the middle felt that their discount was far less than the rich 3's. The middle and the poor hence accused the rich of cornering all the benefits and beat them up and the rich 3 didnt turn for drink the next day. The next day the pub wouldn't allow the remaining 6 to enter since they couldnt pay for the drinks.

This is the probably one of the best description of taxation and tax breaks system. There is a limit that a government can impose tax on the tax payers. After a threshold it is inevitable that the tax payers simply run away, then wonder who will be paying the tax.


One of the first things that came to my mind on hearing PM Dr.MS comment on CEO earnings was the above story. How many times have we heard the story of killing the golden hen laying goose. But nope the story is relevant only for the 4-8 year old kids with the adult politicians however educated and smart they be, refuse to go by that.
Today the CEOs are earning much hence make them cut their salaries, get brownie points of being an Aam Aadmi guy but then tomorrow not many would prefer to be CEOs in the country. Then what, run a Vodafone or Airtel or Tata Group with Aam aadmis? or even better sarkari bureaucrats? The former I dont thing will be an option in the wildest of imaginations of the aam aadmi himself and the latter, well the infamous hindu rate of growth stands testimony to the approach.

Interestingly if you keep slashing everyone's salary but the fraternity of politicians and the allied to bring about an equality, then who will fund the country's bill? do we print rupee notes to fund our deficits? All this will portend to the '91 pawing of our gold assets to BoE which would be 1 backward step for the government and a giant leap backward in terms of progress for India.
Also by then the aam aadmi would be completely empowered since there would be ne one else left.

A better way to decrease the inequality would be if the govt cuts on its bureaucratic spending and use the savings for better infrastructure and social support systems. But then that wouldnt win yo political votes would it, hence what a stupid thing to say from me. huh.