How about those gigantic tax deductions?

Question

for the wealthy.

Answer 1

Well, for whatever reason most Americans seem to support them, even though they will never benefit from them. I guess everyone in America thinks they can be rich some day, so they see no problems with the rich benefitting in these ways.

Answer 2

How Taxes Work . . .

This is a VERY simple way to understand the tax laws. Read on -- it does make you think!!

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, and 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 (in tax language a tax cut).

"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 $80.00.

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 who 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, a little late what was very important. They were FIFTY-TWO DOLLARS short of paying the bill! Imagine that!

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.

Where would that leave the rest? Unfortunately, most taxing authorities anywhere cannot seem to grasp this rather straightforward logic!

Answer 3

Hey your class envy is showing. Tax deductions for anybody are good rich and poor. Although tax cuts for the poor are very small because the poor do not pay income taxes only consumption taxes. The top 5% of the income tax payers pays 85 % of the tax burden.

Answer 4

I think Republicans love America... until they have to pay taxes... then they make Osama look like an American...

they start crying about the U.S. "stealing" and crying about "how they should keep everything"...

the simple fact is... those that have been blessed with success, have a greater level of responsibility... with power comes responsibility, and money is power... yet the party of "responsibility" doesn't agree...

about 50 percent of America is living pay check to pay check... and yet they give more to the rich... in hopes that they "MAY" reinvest it... they don't have too... they may not... they can IF THEY WANT TO... do something good with it... if they don't... oh well...

Curtis916: if 85 percent of the money passes through your hands... you should pay 85 percent...

Answer 5

Who is it that starts million dollar businesses, builds and buys large new homes, invests their life savings to start a business, and employs 80% of working Americans? It certainly isn't a crackhead on welfare.So why shouldn't they get a decent tax break for putting everything they own on the line?

Answer 6

Since they are the ones paying the taxes, who else should get the deductions?

Answer 7

If you are middle class you got an average of $20, that's good for the economy, you spent it didn't you, Somebody in China gets to eat because you went to the dollar store, Bush's plan all along was to pump the economy in China, Clever wasn't it.

Answer 8

Agree. I know that I can count on you to be a supporter of the Fair Tax. Eliminates all tax deductions for the rich...and poor alike. In fact, it eliminates all income tax.

http://www.fairtax.org/

Answer 9

Yeah, seriously, with my Bush tax cut ($65) I was able to pay one of my outstanding medical bills, my boss used his to buy an Audi.

Answer 10

Reap,Reap,Reap!