Percents and Absolutes

Ever wonder why some things are based on Absolutes and some things are base on Percentage?

As an example... Taxes are usually based on Percentage, whereas things such as Cars, Houses, plane tickets, can of beans, etc. are based on absolutes.

Well with all the hoopla from the politicians these days, with all the "this should be this" and "this should be that", and "it should be this way"..." no it should be that way", etc. Drives a person to insanity.

Well I don't have solutions for all of the political woes these days, but I do have a solution of one thing.

Let's make it "Fair & Equal" for all our citizens. After all isn't that the premise of our founding Fathers?

Here is my thoughts to get rid of any disconnect between Percent and Absolute. I propose we do everything as a percent, 100% across the board. This method would be simple yet somewhat complex- which BIG (as in Big Government) would love, however the result is that it would be FAIR & EQUAL. Now these are new words that seem to not be in BIG's vocabulary... but heck... my concept would add them.

So here it is. I think you will like it... why... because it's FAIR & EQUAL.

Everything, and I mean everything, we purchase or pay for would be paid as a PERCENT (%). How it works would be similar to the current income tax method (see... told you BIG would love it).

Now, in order to use percents, you have to have percents of "What"... Right? So from that aspect it really is quite simple. First there is a constant, and then there is a percentage baseline. Simple. Right?

Here is how it works. The constant is the MEDIAN income of all the folks right here in the good old USA (remember median is exactly halfway. Half make more and half make less). Based on the latest "BIG" figures, median income is somewhere around $50,000.00, so let's use $50,000.00 for our constant.

It works this way. Say for example that you want to buy a new car. The sticker price of the car is $25,000.00. All the folks who are making $50,000.00 (Median income) would pay $25,000.00 (sticker price) for the car. As you see, that $25,000.00 car works out to be exactly 50% of your income... right? So now we have a Percentage (%) baseline established. Anyone wanting to buy that new $25,000.00 car will only have to pay 50.00% (percent) of their income for it. Let's break it down to see how it works.

Person "A" makes $10,000.00. 50% of $10,000.00 is $5,000.00 so person "A" only pays $5,000.00 for the car. That seems FAIR... right? Now Person "B" makes $100,000.00, 50% of $100,000.00 is $50,000.00, so person "B" pays $50,000.00 for the car. Again... that seems FAIR. Now, another example, so you can get the idea better. Person "C" makes $250,000.00. 50% of $250,000.00 is $125,000.00, so person "C" pays $125,000.00 for the car.

 Get the idea? It just becomes so simple. Someone (maybe you) walks into the showroom, sees a $50,000.00 car they want to buy. Sales guy does the quick math.

$50,000.00 (New Car) / $50,000.00 (Median Income) = 100%, so the baseline is 100%. Sales guy asks how much you make. You tell him $20,000.00, so you pay 100% of $20,000.00, which, just happens to be $20,000.00. (If you can afford $20,000.00 is another subject). Now say that the wealthy CEO from one of now famous (or infamous) banks goes into the showroom, and wants to buy a $75,000.00 Corvette, now that he or she has the funds hijacked from your 401k.

 $75,000.00 (New 'vet) / $50,000.00 (Median Income) = 150%. So the baseline is 150%. Since the CEO earns - by pirating from your 401k - $250,000.00 a year then the CEO only pays $375,000.00 (150% of $250,000.00) for the 'vet. Seems FAIR... right?

Now, you could have purchased that Corvette for only $30,000.00 (150% of your $20,000.00 income). That's a real good deal compared to the CEO, but hey... he or she can afford it as he or she has the BIG bucks in the first place. But at $20,000.00/year doubt you could, but hey... Maybe if you save up for a while, who knows? Still, it's FAIR & EQUAL because both of you are paying the same PERCENT (%).

Get the idea, this way everyone is treated FAIRLY & EQUALLY.

Now, this concept would work for everything, even TAX's.

 Here is an example.

Let's take the two cars. Let's say that you were able to buy that $20,000.00 car and the other one is the one the CEO just bought for $375,000.00. Now, let's say that "BIG" has established that 5% is a FAIR Sales TAX Rate. Well, that would really be no different than it is today. See the EQUALITY here - Everything is Percent (%) based.

So you pay $1,000.00 Sales tax and CEO pays just $18,750.00 Sales Tax. Again... seems FAIR. Right?

Here is just one more example, to make sure you get the concept.

You are going to fly to LA for vacation and it just so happens that Mr. /Mrs. CEO is also going to fly to LA on the same flight. Now, we already know that Mr. /Mrs. CEO steals (oops... earns) $250,000.00/year. Let's say for example, that you only earn $10,000.00 (you work for Big Mac). Now let's determine that the cost of the ticket, for the median income ($50,000.00) person is $500.00.

Here's how it works out. First we do the math. $500.00 (Ticket price) / $50,000.00 (Median income) = 1.00%. Therefore you pay 1% of your income. Which is $100.00. And Mr. /Mrs. CEO also pays 1% of his or her income. Which is $2,500.00. And, as you can see is FAIR & EQUAL. You both paid 1%.

OK, by now, if you have not bailed out on me, and have gotten to this point, then I think you can see and understand how it works, AND see how FAIR & EQUAL the concept is.

Try it out. No matter if it is a can of beans, or a gallon of gas, it still works out. Why is this concept FAIR & EQUAL? Well because it is always based on the median income as a constant and a common percentage for everything.

This is so simple, I do not understand why BIG has not thought of it.

If you like it, tell your congressman.

Yes... I know.... I have too much time on my hands!

Just Say'n