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The Truth About Taxes
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Posted on 01/11/2003 9:55:25 AM PST by Positive

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. Tax them too much, attack them for being wealthy, and they just may not show up at the table anymore.

Unfortunately, Liberals cannot grasp this straight-forward logic!


TOPICS: Business/Economy
KEYWORDS:

1 posted on 01/11/2003 9:55:25 AM PST by Positive
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To: Positive
http://www.hannity.com/index.cfm/bay/content.ontheshow2.htm
2 posted on 01/11/2003 9:57:21 AM PST by Pyrion
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To: Positive
Unfortunately, Liberals cannot grasp this straight-forward logic!

Maybe this will help.

Taxcuts are for Taxpayers!

3 posted on 01/11/2003 10:03:14 AM PST by Balata (Taxcuts are for Taxpayers!--(I can dream, can't I)=;^)
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To: Positive
Thanks for the re-post (this was posted a few days ago but I lost track of it).

I have some liberal family members who are going to get a copy of it :))
4 posted on 01/11/2003 10:06:14 AM PST by freedumb2003
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5 posted on 01/11/2003 10:09:03 AM PST by Anti-Bubba182
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To: Balata
Taxcuts are for Taxpayers!
6 posted on 01/11/2003 10:10:17 AM PST by Grampa Dave (Support Free Republic. Become a monthly donor ! Taxcuts are for Taxpayers!)
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To: Positive
Small community in dire straits.....

1000 citizens...

Democrats want to give each citizen 1000 dollars to help boost the economy....$1,000,000. This money will be spent in a month....then what?

Republicans want to give the million to a local business which in turn would hire the 1000 citizens at $1000/month from now on.

7 posted on 01/11/2003 10:20:39 AM PST by Lower55
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To: Positive
The only flaw in this allegory is the following paragraph:

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!"

The fact is, the men involved didn't have a problem with it at all. It was Tom Daschle who was standing outside the restaurant (on a step stool) shouting, "The fifth and sixth men only got one dollar out of the 20! The wealthiest man got all the breaks!" etc., etc., ad infinitum.....

8 posted on 01/11/2003 10:22:16 AM PST by Texas Eagle
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To: Texas Eagle
The fact is, the men involved didn't have a problem with it at all. It was Tom Daschle who was standing outside the restaurant (on a step stool) shouting, "The fifth and sixth men only got one dollar out of the 20! The wealthiest man got all the breaks!" etc., etc., ad infinitum.....

Good point. And Dashole would probably also have a signboard hanging from his neck saying: The End is Near!

9 posted on 01/11/2003 11:14:03 AM PST by Positive
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To: Positive
That is the simplest yet most profound way I've seen this whole tax thing clarified! And it's true; the rich may not show up one day. No sense in begrudging the rich for what they have, because they've always had it and always will!
10 posted on 01/11/2003 11:22:03 AM PST by Guardian41
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To: Positive
old post - new life
11 posted on 01/11/2003 11:39:02 AM PST by LiteKeeper
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To: Positive
Good point. And Dashole would probably also have a signboard hanging from his neck saying: The End is Near!

Correct.

12 posted on 01/11/2003 11:54:58 AM PST by Texas Eagle
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