Malaysiakini and The Star reported that the Malaysian government wants to make the rich pay more for fuel. This reminds me of a story which goes like this:
Every day, ten men go out for dinner. The bill for all ten comes to $100. If they pay their bill the way we pay our taxes, it would go something like this:
. The first four men (the poorest) would pay nothing.
. The fifth would pay $1.
. The sixth would pay $3.
. The seventh $7.
. The eighth $12.
. The ninth $18.
. The tenth man (the richest) would pay $59.So, that’s what they decided to do. The ten men ate dinner in the Restaurant every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve. “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 ten only cost $80. 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 each 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, like the first four now paid nothing (100% savings).
. The sixth now paid $2 instead of $3 (33% savings).
. The seventh now paid $5 instead of $7 (28% savings).
. The eighth now paid $9 instead of $12 (25% savings).
. The ninth now paid $14 instead of $18 (22% savings).
. The tenth now paid $49 instead of $59 (16% savings).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. He pointed to the tenth man – “but he got $10!”
“Yeah, that’s right,” exclaimed the fifth man. “I only saved a dollar, too. It’s unfair that he got ten times more than me!”
“That’s true!” shouted the seventh man. “Why should he get $10 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 surrounded the tenth and beat him up.
The next night the tenth man 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 something important. They didn’t have enough money between all of them for even half of the bill!
And that, boys and girls, journalists and college professors, is how progressive tax system works. Tax the rich too much, attack them for being wealthy, and they just may not show up at the table anymore.
Filed under: Misc
I agree with you, that the rich paying more idea is not that attractive. Some rich people got there, by saving a lot. On the other hand, you see many poor people who makan tak habis and just sleep in the car with the aircond on.
Harapnya ‘kebajikan’ yang dilaung-laung benar-benar mengendong erti keadilan
genius.
The issue of fuel subsidy rised when the world crude oil prices soared high to more than USD132 per barrel. Why in the first place the effectiveness of subsidy implemention in nationwide were being questioned as it has been there working out all along? The fact was that the rakyat feel the pinch in their pocket when most of the food commodities prices going high. How many rakyat objected the price of RM1.92/liter on RON97? Don’t most of us accepted the spike high of petrol prices even before the 12thPRU?
The stricter regulation imposed on fuel subsidies does not rise from the rakyat itself but the government when the so called allocation budget subsidy of last 9th MP are not be able to cope up with the rising crude oil prices. We need to look at the overall root cause of the higher standard of living that could rise impacted on rakyat due to economic turmoil in US. How does the US Federal govt going lowering the federal interest or tax to avoid economy recession.
The fuel subsidy imposed is a matter of “right pocket and left pocket”….with limited eggs in a basket, M’sia couldn’t withstand the same fate as other countries is doing by playing around with the fuel subsidies. There are other controlling ways and means on fuel consumption on world wide. Apart of it was the introduction usage of natural gases such as NGV with large scale gas pump station network that can provide as alternative for certain transportation mode. Incentives by the government for modification on vechicles for such alternatives would be given on individual in a form of rebates. Biogas is a form of alternative used in some urban developed countries with lower negative impact on environment.One time installation fees needed on modification is awesome (about RM3k-5k minimum) but the return is rewarding in long run. This mass scale of system can start to be implemented on urban area and running on stages in rural areas.
Another restriction impose on fuel consumption near countries border is encouraging as the fuel subsidy are meant for locals and not foreigners. Foreigners needed to pump in petrol in local pump station will need to apply some sort like petrol reload card particularly used only for foreigners with same price of the currency exchange value as their homeland.
Other illegal activities such as buying excessive fuel in barrels for all pump station needed to be strictly impose as to avoid fraud cases of selling crude oils illegally. The task force like army, navy or police force need to play a role on this on the strict execution on violation of such restriction.
By using the concept of Robinhood to rob the wealthy for the poor on fuel subsidy is not proper as it depends on other external factors such as monthly fuel consumption, monthly income, car capacity,etc. Other stricter or higher taxes can be imposed to rich individuals is more feasible than playing with the fuel subsidy. Wang ehsan from the oil royalty needed to be spent wisely to avoid burdening the overall society. How about tax on cigarettes and hard liquor increase higher? MAS is making money now how about the channeling more income for govt fund? Proton is reviving or needed for joint venture with foreigner after all it would not be able to withstand AFTA in next coming years, channelling the sell over stock money for the use of rakyat? For the case of TNB losing money? How does the money laundering happens?
Palm oil use to produce for biodiesel should be develop more on usages to support for heavy transportation mode such as taxi,lorries,buses,etc as these are the heavy fuel users if it is workable. Else how about improving mode of transportation infrastructure in M’sia to avoid using personal cars as ways and means to reduce fuel usage? Can we get a cab in less than 5 minutes waiting time throughout Msia? Can we have LRT connected within all states? Can we have big scales of online shopping facilities that can reduces hassles of driving out to buy groceries,products,etc?
they should reduce the other price that can be revised such as toll, road tax, car and etc. and also the public transportation must be good. the fact that our own living in malaysia is too much comfort and luxurious. there must be a mechanism for the citizen to be sensible and responsible on each act they make such as recycling, car pooling, using public transport and many more.
i would like to see more democracy in the local council (where they will be elected, not appointed) and more proactive policies introduced to the local society.
yes, we can if the local council and the state council are more sensible to the people.
hmm, i think lim guan eng has a better idea than the PAS MB (menteri besar). glad i live in chinese-led state!
controlling the rich people to pay more will only increase the bureaucracy. also restricting for the foreigner not to fill the fuel in malaysia. aiyo, you need another majlis kawalan harga negara and end up hiring people to control the customer. yes, hiring more people will need more money. sigh… let the market dictate the price. rice also very hard to find in supermarket and the price increase dramatically for the past 1month
cerita best, makasih!