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Tax Cuts - A Simple Lesson In Economics… This is how the cookie
crumbles… Please read it carefully…

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.

So, 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 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 %, and he proceeded to work out the amounts
each should pay.

And so the fifth man, like the first four, now paid nothing (100% savings).

The sixth now paid $2 instead of $3 (33% savings).

The seventh now paid $5 instead of $7 (28% savings).

The eighth now paid $9 instead of $12 (25% savings).

The ninth now paid $14 instead of $18 (22% savings).

The tenth now paid $49 instead of $59 (16% savings).

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 man “but he got $10!”

“Yeah, that’s right,” exclaimed the fifth man. “I only saved a dollar,
too. It’s unfair that he got ten times more than me!”

“That’s true!!” shouted the seventh man. “Why should he get $10 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 the tenth man 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 didn’t have enough money between all
of them for even half of the bill!

2007-04-13 11:07:16 · 14 answers · asked by GREAT_AMERICAN 1 in Politics & Government Politics

14 answers

Tax deduction = Imus ranch

You can't understand

2007-04-13 11:10:30 · answer #1 · answered by Anonymous · 0 2

This is b.s. I don't have any problem with the richest getting more money back if they paid more in the first place. The problem with your analogy is that you say that the other men would conveniently forget that they were paying less money to begin with. In the real world the rich end up paying a smaller percentage of their income than people who earn less. This analogy misrepresents the injustice done in a tax system that favors the wealthy.

2007-04-13 18:26:24 · answer #2 · answered by ? 6 · 1 1

The problem is they don't all make the same. Suppose you look at real life. John makes 1,000,000 and he pays .10% in taxes because of loopholes and Mary makes 25,000 she pays 10% in tax because she doesn't have any loopholes she can qualify for. John's taxes are 1000 which he certainly can afford. He probably has that in his change purse. Mary would pay 2,500 in tax. She has enough trouble making ends meet as it is. Who can better afford to pay higher taxes? John who doesn't worry where he'll get money for rent, food for his table, or medicine or mary who worries about all of that and more? Who needs the tax cut more John who without the tax cut is just fine financially or Mary who can use every dime she can get?

2007-04-13 18:28:58 · answer #3 · answered by Anonymous · 1 2

Thank you. This is classic.

I know you tried to tell it in a format you thought libs would understand, but as you can see, they pretend not to know what you are saying. That proves the whole point even more (they would be the ones to show up for dinner with no money).

I am convinced that liberals are real low on the evolution scale. (it may take several thousand more years).

2007-04-13 18:35:14 · answer #4 · answered by Anonymous · 3 2

Then the guy that the tenth man backed for president showed up and said, "Don't worry 10th guy!! I'll just put it on my credit card!!!" Everybody was happy that they got to eat for less, until someone pointed out that the credit card bill was going to be sent to their children.

2007-04-13 18:23:35 · answer #5 · answered by Schmorgen 6 · 0 2

like it or not thats just about exactly how it works.

""The truth (something that eludes conservatives) about taxes is simple, the rich are taxed on approx 10% of their true, annual "compensation".""

Chi thats still alot more money they pay in taxes than most. And it doesnt elude conservatives. Im not rich, Im almost dead center middle class. I think a flat tax would be the right thing though.

2007-04-13 18:13:33 · answer #6 · answered by sociald 7 · 0 3

Save this lame, misconception of a neo-logic based explanation. Neo-cons mass-email this false logic to everyone they know three times a week and twice on Sunday.

The truth (something that eludes conservatives) about taxes is simple, the rich are taxed on approx 10% of their true, annual "compensation".

They draw an annual salary for which they are taxed, and a 100 fold more "compensation package" for which they are NOT taxed. Yet they have conned neo-cons to fight for their right to lower the burden on the 10% income that they do pay taxes on.

2007-04-13 18:10:32 · answer #7 · answered by Chi Guy 5 · 4 4

Very clever. Jesus used parables to teach his disciples. The difference between disciples and liberals: the disciples were believers and were willing to listen and to learn. Liberals want government to run everything and they want to run the government. Logic and reason do not matter.

2007-04-13 18:27:36 · answer #8 · answered by regerugged 7 · 1 1

What an innane, simplistic analogy.

2007-04-13 18:13:04 · answer #9 · answered by Anonymous · 4 0

Dont try to explain facts to liberals as they dont know facts only propaganda and foolishness if your a liberal the only way you stay one long is to become so deeply entrenched in your foolish beleifs that people cant wake you up. HAHA I used a liberal saying you know. Wake up. They love to tell everyone to do that even though they are in fact the ones who need to WAKE UP

2007-04-13 18:13:42 · answer #10 · answered by Anonymous · 3 4

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