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Tax Cuts for Dummies--One View


joe

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I thought that some of you would really appreciate this.

This is a VERY simple and very quick way EVERYONE can understand the tax laws .

Let's put tax cuts in terms everyone can grasp. 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 under the system and percentages in effect today, 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.

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 (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, but he, pointing 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!

[would be nice to come across some rebuttal discussion--there's gotta be somebody that knows another perspective...?]

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I appreciate the hell out of this Joe. Thanks :). I'll be only to happy to provide the liberal slant on the same concept, with notations within :)

Let's put tax cuts in terms everyone can grasp. 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 under the system and percentages in effect today, it would go something like this:

Let's put tax cuts in terms everyone can grasp. Suppose that everyday six men go out to dinner while you and your four friends are left to subside on Raman and Pizza Quick covered Wonderbread in the toaster oven. They can't afford to pay their way like the six guys who go out to dinner. But, they have the same rights to a nice dinner as those six guys. Those six guys generally don't work, like you and your three buddies. They generally inherited all their money, or they steal it from hardworking Joes like you and me. So, one day a fair-minded legislator says that those six guys have to start taking you out to the same place, because, you have the same right to a dinner you can't afford as the people who do go out. If that bill for 10 now comes to $100, here's how things should work.

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.

The four men -- the hardworking Joes -- now legally obligated to be cared for by the others eagerly await their dinner. And over conversation, and free garlic bread, the hardworking Joes discover that one of the guys is almost like them and doesn't have much. So, the rich guys jerk him around and make him pay a buck, like it matters. He needs that dollar. The rich guys have so many dollars. It's just wrong. Anyway, the sixth guy only has a little too, but he has more than we do, and that fifth guy, and they rich guys make him pay $3 bucks. Jerks. It goes up like this so the next guy is forced to pay $7, the eighth has a $12 share, the ninth is at $18 and the rich dude who should pay for it all only pays $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 (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.

So that's what some fair-minded legislators who know that hardworking Joes deserve the same stuff those people that steal from the hardwork of others have decided to do. The six men who used to eat together seemed a bit bummed, like they shouldn't have to give their ill-gotten, probably silver-spoon dollars based on luck and kissing up to the right guy, dollars to the rest of us, but, it was pretty classy eats for the four hardworkers who were pretty thrilled with the whole deal. Then the fat a$$ owner shows up and ignores the four of us who are required to be there and says to the other six, "Since you are all such good customers I'm going to reduce the cost of your daily meal by $20." Now, that $100 check is just $80. Probably that fat a$$ owner who should have given us the meal free in the first place is just going to cozy up with his fat cat Senator buddies to give him a kickback, so he'll get his and all.

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?"

Son of a b!tch. The lazy a$$ owner gives everyone $20 bucks and for some damn reason those other six dudes couldn't figure out that there were 10 of us and not just 6, you know? So, do you know what these rich pricks said to us? "Guys, come on. You guys aren't paying anyway. We should split this up among those of us who are paying." Friggen fascists. We have EVERY right to that money man. So, we told them we needed to split that cash up fairly. You know?

[/b]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. [/b]

At first, these six rich mother f@ckers said they should divide that $20 by six, and each of them should get $3.33 back. That's when those richers turned on each other. You should have seen it man. Daddy Warbucks said, "Well, that would mean that you two would be paid to eat here." Hell yeah. That's what I'm talking about man. But, that nosy glorified chef shows up who owns the place and says, "Just take the money back based on how much you pay in." Sh!t dog. That ain't going to fly up in here. We were just biding our time while those rich b!tches figured out how to take our money. We're getting ours. Oh yes. We're getting ours.

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.

So, these guys started talking all this trash. Said the guy kind of like us should pay nothing. You should have seen his mind working then. He liked that idea. That's how it ought to be. But, they still tried to rob from the other dude, making him pay $2. That seventh guy paid $5, they said. The eight paid $9. The ninth went to $12. And the guy who owns have the country tried to pocket $7 of that $20. They said we'd still eat free though. They must think we're crazy or something, but we did the math and dropped a bomb on these fools.

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, but he, pointing 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 four hardworking cats just waited. We knew what was going to happen. That fifth dude looked at the pile and said, "I only got a dollar out of the $20." HELL YEAH. Now we had them. That's half of us. It's called democracy you fools. You can't steal from what's ours. He then screamed, "But he got $7." You should have seen that rich dudes face knowing how wrong he was to try to steal from the rest of us. That sixth cat jumped with us too. I think some people on the Senate floor call 60 percent a supermajority. Well, we had one heck of a supermajority going for us now when that sixth guy said, "I only saved a dollar too. It's unfair that he got seven times more than me!!!!!!!!!!!!!!!!!!!!!!!!!!!" That's true, we said, in concert with the seventh guy who asked, "Why did I only get two back. The wealthy get all the breaks!" You know it man. You know it. Then we tipped the party over. We screamed, "We didn't get anything at all. The system exploits the poor!" It was OVER, if you know what I mean.

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!

We rushed that rich jerk. Took the money. The way we figured it was, the five of who now didn't pay anything should split the $20. So we each got $4. That's how it should be. We figured the guys who still had to pay had the cash anyway. The rich guy just cried about the beating, but, hey, he was trying to take our money so we just gave him what he deserved. The sixth guy was a little upset, but we told him to hang on man. We were rising to swallow him up in our group. Only the rich should pay. Everybody knows that. Then, get this, the next night we got to dinner and ate, and the rich guy was off crying somewhere. We were looking forward to collecting our four dollars, but then the owner of the restaraunt said we were like $60 short or something. NO way. We're entitled to that dinner.

We started arguing. The bartender had on the television and one of us heard a fair-minded guy saying that we have to give a break to the people that work hard. That's us. He said he was going to work hard to make sure all our dinners were free. He's a guy I'm voting for.

I'll finish later :)

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except in our governments case, the dinner bill came and instead of a $20 discount, the owner has raised the prices. Now we'e all short. Instead of upping what everybody pays, we're all complaining about how to divide an imaginary $20 discount.:doh:

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Oh lordy Gbear, "Instead of upping what everybody pays, we're all complaining about how to divide an imaginary $20 discount."

You're one of those I see. One of those being those who think you TAX into economic slowdowns. It worked great in the depression and every recession we've ever had :). You relieve the tax burden in times of economic uncertainty, and in every case we have made dramatic tax cuts, not only has the economy responded, but, government intake of revenue spiked as well.

A better argument can be made to tax during the good times than when they are rocky. Of course, there's no real good time to tax :0.

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