- Sep 11, 2002
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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-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.
The ten men ate dinner together every day and seemed quite happy until one day the owner threw them a curve.
"Since you all are such good customers," he said, "I'm going to reduce the cost of your meal by $20."
Dinner now costs $80. The group wanted to pay their bill the way we pay taxes.
So the first four men were unaffected. They ate for free, but what about the other six paying customers?
How could they divvy up the $20 windfall so everyone got his "fair share?"
The six men realized $20 divided by six is $3.33. But if they subtracted that from everybody's share then the fifth and sixth men would end up paid to eat their meal.
So the restaurant owner suggested that they should reduce each man's bill by roughly the same percentage.
And so the fifth man now paid nothing, the sixth now paid $2, the seventh $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, but once outside the restaurant, the men began to compare their savings.
"I only got a dollar out of the $20, but he got $7!" said the sixth man pointing at the tenth.
"Yeah that's right," exclaimed the fifth man. "I only saved a dollar too. It's unfair he got seven times more than me!"
"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 really exploits the poor!"
The nine men surrounded the tenth man and beat him up.
The next night, he didn't show up for dinner so the nine ate without him. But when the bill came they discovered something important. They were $52 short!
And that my friends is how our tax system works.
The people who pay the highest taxes get the biggest benefit from a tax reduction.
Tax them too much, penalize them unfairly for being wealthy, and they just may not show up at the dinner table anymore.
Unfortunately, liberals cannot grasp this straight-forward logic!
author unknown
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-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.
The ten men ate dinner together every day and seemed quite happy until one day the owner threw them a curve.
"Since you all are such good customers," he said, "I'm going to reduce the cost of your meal by $20."
Dinner now costs $80. The group wanted to pay their bill the way we pay taxes.
So the first four men were unaffected. They ate for free, but what about the other six paying customers?
How could they divvy up the $20 windfall so everyone got his "fair share?"
The six men realized $20 divided by six is $3.33. But if they subtracted that from everybody's share then the fifth and sixth men would end up paid to eat their meal.
So the restaurant owner suggested that they should reduce each man's bill by roughly the same percentage.
And so the fifth man now paid nothing, the sixth now paid $2, the seventh $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, but once outside the restaurant, the men began to compare their savings.
"I only got a dollar out of the $20, but he got $7!" said the sixth man pointing at the tenth.
"Yeah that's right," exclaimed the fifth man. "I only saved a dollar too. It's unfair he got seven times more than me!"
"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 really exploits the poor!"
The nine men surrounded the tenth man and beat him up.
The next night, he didn't show up for dinner so the nine ate without him. But when the bill came they discovered something important. They were $52 short!
And that my friends is how our tax system works.
The people who pay the highest taxes get the biggest benefit from a tax reduction.
Tax them too much, penalize them unfairly for being wealthy, and they just may not show up at the dinner table anymore.
Unfortunately, liberals cannot grasp this straight-forward logic!
author unknown