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Let's put tax cuts in terms everyone can understand! (Tax Code Simplified)
Original | 11/24/2002 | Unknown

Posted on 11/24/2002 4:19:55 PM PST by Sen Jack S. Fogbound

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 stillw anted 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 paid nothing, the sixth pitched in \$2, the seventh paid \$5, the eighth paid \$9, the ninth paid \$12, leaving thet enth 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 thef ifth 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.

There are lots of good restaurants in Europe, the Caribbean, and many other places in this world where enjoyable meals can be purchased without being beat up!

TOPICS: News/Current Events
KEYWORDS: progressivetaxation; taxcut; taxrates

1 posted on 11/24/2002 4:19:55 PM PST by Sen Jack S. Fogbound

To: Sen Jack S. Fogbound
I bet none of those sum'bitches left a tip!!!
2 posted on 11/24/2002 4:23:41 PM PST by Madame de Winter

To: Sen Jack S. Fogbound
Well, just because he didn't show up doesn't mean he shouldn't pay. It's like if you don't have any kids in school, you still gotta pay. (/lib rant off)
3 posted on 11/24/2002 4:25:56 PM PST by Mark

To: Sen Jack S. Fogbound
"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.

Looks like liberal logic.

4 posted on 11/24/2002 4:27:25 PM PST by Cobra64

To: Sen Jack S. Fogbound
Excellent illustration of how our tax system works.
5 posted on 11/24/2002 4:34:26 PM PST by meyer

To: Sen Jack S. Fogbound
Fantastic!
6 posted on 11/24/2002 5:05:11 PM PST by dila813

To: Sen Jack S. Fogbound
There you go, making sense...you know you'll be punished if you keep up this behavior!
7 posted on 11/24/2002 5:21:53 PM PST by Orangedog

To: Orangedog
I think this is abuse. Any use of math or logic in a tax discussion is just plain republican and everyone knows it.
8 posted on 11/24/2002 6:07:29 PM PST by Jimbaugh

To: Sen Jack S. Fogbound
bump!
9 posted on 11/24/2002 6:16:50 PM PST by meyer

To: Sen Jack S. Fogbound
I noticed that while the richest man received a reduction in the total amount he paid, his percentage of the bill increased-he paid 59% of the \$100 tab, and 65% of the \$80 tab!
10 posted on 11/24/2002 7:36:17 PM PST by GATOR NAVY

To: Sen Jack S. Fogbound
I love this explanation.
Saving it to save myself a whole lot of typing.

Next time a boxful of rocks shows up...

11 posted on 11/24/2002 8:17:03 PM PST by Publius6961

To: meyer
I would believe this would make the case for Flat Tax or National Sales Tax (without Income Tax) a little easier to see!

I had quite a time trying to explain all this to a liberal friend of mine but he insisted that the wealthy folks get all the breaks! Jeez!

12 posted on 11/25/2002 5:34:18 AM PST by Sen Jack S. Fogbound

To: Sen Jack S. Fogbound
Bump to self
13 posted on 11/25/2002 5:47:05 AM PST by MrB

To: Sen Jack S. Fogbound
Excellent!

Every time the left says tax cut for the wealthy, we should say tax incentive for our employers and entrepreneurs. What is "fair" to poor people is always unfair to the economy. Of course, flat tax or NRST would solve the dilemna.

14 posted on 11/25/2002 5:59:27 AM PST by wayoverontheright

To: Sen Jack S. Fogbound
BUMP
15 posted on 11/25/2002 8:57:21 AM PST by Publius6961

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