Tax Cut explanation even a Liberal "could" understand.

Anonymous | 12/19/2 | Varmint Al

[Varmint Al]

The Tax Cut
by Anonymous

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.

[Varmint Al]

Just got this in an email. Couldn't find it here at the FreeRepublic with a search...

Good Hunting... from Varmint Al

[driftless]

I've read it somewhere else before, but it's still a good read. However it's useless to try and convince hard-liberals about the benefits of tax-cuts. They've succeeded in conning many Americans into believing that tax-cuts are evil tricks designed to help the tiny percentage of filthy rich plutocrats.

Tax increases mean bigger government which is what arch-libs desire above all else. Giving the average tax-payer more of their money back gives them more control over their own lives and less that government has. Rad-libs can't have that.

[Varmint Al]

Giving the average tax-payer more of their money back gives them more control over their own lives and less that government has. Rad-libs can't have that.

A better way to say that is:

Allowing the average tax-payers to keep more of their money gives them more control over their own lives and is less control that government has.

One must remember, it is NOT The Governments Money when you make it!

[VRW Conspirator]

bump

[driftless]

I thought that's what I said.

[nutmeg]

bump

[Varmint Al]

A bump for eveyone else who pays taxes!

[Varmint Al]

Another bump for everyone who pays taxes.

[SeeRushToldU_So]

Hannity read this yesterday. It is his favorite illustration on tax cuts.

Now I have it book marked. TYVM

[backhoe]

Bump for later-

[Auntie Dem]

"...even a liberal could understand..."

You're giving the liberals w-a-a-y-y-y-y-y too much credit. They still think rich people are like Scrooge McDuck who keeps all his money in a vault, uses it only to play on, and won't give his poor nephew Donald any of it. And to think that Hewey, Dewey, and Louie are still happy, carefree kids. If they only knew just how their great Uncle Scrooge was screwing them!

[Varmint Al]

A Bump for Rush. Rush was going to read this today on his radio program, but got side tracked and never got a round to it. So... Here it is...

[Varmint Al]

Tom Sullivan on the Rush Limbaugh show, just read this over the air. (Not necessiarly from here, but if you are interested in the text, here it is.)

[Varmint Al]

Thanks for the Bump. I think Tom Sullivan did a pretty good job reading this. Tom does finance as a business and he understands taxes and tax relief.