A state named Garaland is just outside of Illinois. It has only 4 Citizens. The owner of a business Art. There is a retired man, Bob, who likes to hire Art's business to do work for him. Art has one employee. Tony. I am the single legislator of Garaland. I must get votes to remain in my position of power.
Looking at the electorate I see Art, Bob and Tony. I need to get elected every year. As the Legislator I have the right to regulate and make deals for Garaland.
Since I am elected, I need to get money to run for office. Art won't support me, he's an evil businessman. But Bob is retired and Tony works for art. They both kick in. After the election they come to me to see what I will do for them.
I make a law that says that Tony who was making $15 per hour working for Art, that now Art must pay him $30 per hour. Bob complains that Art charges him an average of $2000 per month to do the work Bob needs. I look into his complaint and make a law that Art can charge Bob, a retired soul, no more than $1000 per month.
In a few months, Art declares bankruptcy. Tony is unemployed and the work Bob desperately needs done is undone. They complain. I supeona Art. Demand that he do the work. Art is broke.
I hire Art as the sole legislator to do the work Bob needs done. To pay him, I tax Tony 50% on his salary and put a sales tax of 100% on the work Art is doing in my behalf for Bob. Bob is now paying $2000 for his work and Tony is back to earning a net of $15 per hour.
Wait, as a legislator in the state of Garaland I need to have operating expenses. I take 30% of what Art earns as my take, TAX.
Art protests.
Is Art Wrong? Is Tony better off. Is Bob.
OR am I the only one who get's rich off this?
Isn't this exactly what is happening in the USA in most states.
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