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PostSlut
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I'm sure this one will get deleted....but, lets try and bite our tongues as much as we can.


Quote:
"Understanding Tax Cuts"
by: David R. Kamerschen, Ph.D

Sometimes [maybe usually???] politicians, journalists and the liberal left exclaim; "It's just a tax cut for the rich!" and that unchallenged homily is simply accepted to be fact.

But what does that really mean?

Just in case you are not completely clear on this issue, I hope the following will help. Please read it carefully.

Let's put tax cuts in terms everyone can understand.

Suppose that every day, ten men go out for dinner and 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 would pay $7.

The eighth would pay $12.

The ninth would pay $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." Dinner for the ten now cost just $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 men - the paying customers? How could they divide the $20 windfall so that everyone would get his 'fair share?'

They 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 amount, 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 two? 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 very important. They didn't have enough money between them for even half of the bill!

And that, boys and girls, liberals, journalists and college professors is how our 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 anymore. In fact, they might start
eating overseas where the atmosphere is somewhat friendlier.

David R. Kamerschen, Ph.D
Professor of Economics
University of Georgia
 

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Nice I like'd that!!!!!
 

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Cool, I've never heard that analogy before... I like it. The simple solution is the FairTax. (IBTL)
 

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what it so odd about america and taxes...and i firmly agree with the analogy......those who seem to complain the most about taxes, it seems dont realize what the taxes get them, roads, skules(;)), govt subsidies, etc.....are from taxes, the entire infrastructure is supported by tax dollars. I get money back because I have health insurance, its deducted from gross income, Im less of a burden on the tax payers in that they dont bite the bullet for health matters. We could abolish taxes and "benefit the wealthiest #1" and all that ultra liberal, Al Gore fuzzy math crap, but at the end of the day, look at the industrialized society and conveniences around you and tax your tax dollars.....and my Root, Brown, and Kellogg :p
 

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From what I hear, most of Europe pays more taxes than we do.

It would be interesting to see the % of tax vs. income and the total sum of taxes we pay versus other comparable countries.
 

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From what I hear, most of Europe pays more taxes than we do.

It would be interesting to see the % of tax vs. income and the total sum of taxes we pay versus other comparable countries.

yes, their taxes are much higher. they are almost all social democracies. High taxes pay for a very integrated public transportation system, social healthcare, etc...Its expensive to own a vehicle there, it doesnt matter what the displacement is or how great the mileage is, 1,30 Euros a liter for the cheap stuff is pretty steep, thats not even factoring in that 1 euro is equal to about 1.35 USD. For the most part, there arent "suburbs" like we have here in America, its a completely different way of life. At the same time, most of western europe doesnt exactly have flourishing economies, case in point, Airbus.....which must pursue multinational conglomerates to survive.
 
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