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Author Topic: Tax cuts for the rich!  (Read 1358 times)
Robo
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« on: May 01, 2005, 06:29:56 PM »

The Truth about Taxes

Let's put tax cuts in terms everyone can understand. Suppose that every day, ten men go out for dinner. The bill for all ten comes to $100. If they paid 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.

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 the 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 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 paid nothing, the sixth pitched in $2, the seventh paid $5, the eighth paid $9, the ninth paid $12, leaving the tenth man with a bill of $52 instead of his earlier $59.

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. "But he got $7!"

"Yeah, that's right," exclaimed the fifth man. "I only saved a dollar, too. It's unfair that he got seven times more than me!"

"That's true!" shouted the seventh man.

"Why should he get $7 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 men surrounded the tenth and beat him up.

The next night he 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 were $52 short!

And that, boys and girls, journalists and college instructors, is how the tax system works.

The people who pay the highest taxes get the most benefit from a tax reduction.

Tax them too much, attack them for being wealthy, and they just may not show up at the table anymore.

Unfortunately, Liberals cannot grasp this straight-forward logic!

So keep this in mind the next time you hear the liberal media touting tax cuts favor the rich.
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BigRog
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« Reply #1 on: May 01, 2005, 10:28:37 PM »

Of course thats because the poorest people can afford to pay more of their income then the richest

See it's all just logic!

And of course the restuarant owner is going to do this even when it drives him into deficit.


Great logic there
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Robo
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« Reply #2 on: May 02, 2005, 08:57:20 AM »

Quote from: BigRog
Of course thats because the poorest people can afford to pay more of their income then the richest

See it's all just logic!

Great logic there



Ummmm,  that must be the "new math" you are using.  Last time I checked,

0% of 0 is....... 0

Seems to me the poorest are already paying 0
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BigRog
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« Reply #3 on: May 02, 2005, 09:29:54 AM »

OK
So what about the restaurant owner who is running WAY into the red?
Keep giving discounts?

We'll just keep drilling holes in the boat until all this water runs out!
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mat
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« Reply #4 on: February 16, 2009, 06:11:22 PM »

I was browsing the forum looking for some clues for tax deduction for hobby beekeeper. And got into this topic. Robo, this is genius. Especially now, after almost four years, it is so on time. I am going to print it and pin up on the board at my work.
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mat
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« Reply #5 on: February 18, 2009, 03:38:36 PM »

Quote from: BigRog
Of course thats because the poorest people can afford to pay more of their income then the richest

See it's all just logic!

Great logic there


Ummmm,  that must be the "new math" you are using.  Last time I checked,

0% of 0 is....... 0

Seems to me the poorest are already paying 0
Doesn't matter, Robo.  There are just some people in this country who are always going to insist that 'the rich' pay more because they have more.  It's class envy, and one of the forces (reinforced now by having elected a socialist as President) that's driving us closer and closer to the European style socialism we're now facing.  All while the Europeans reel in their own form of socialism, which has been proven extremely unsuccessful.   Gotta love it.  rolleyes
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Bobb
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« Reply #6 on: February 21, 2009, 03:47:12 AM »

November 4, 2008... The day America committed suicide.
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"Power, especially overgrown power, whets the ambition and sets all the wits to work to enlarge it. Therefore, encroachments on peoples liberties are not generally made all at once, but so gradually as hardly to be perceived by the less watchful; and all plastered over, it may be, with such plausible pretenses, that before they are aware of the snare, they are taken and can not disentangle themselves."

Samuel Webster
Massachusetts 1777
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