SIMPLE WAY TO UNDERSTAND TAX LAWS
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 $100.00. "IF" They paid their bill the way we pay our taxes, it would go something like this....... The first 4 men -- The poorest -- Would pay nothing;
The 5th would pay $1.00; The 6th would pay $3.00; The 7th $7.00; The 8th $12.00; The 9th $18.00;
and The 10th -- The richest -- would pay $59.00. 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 $20.00."So now dinner for the ten only cost
$80.00. The group still wanted to pay their bill the way we pay out taxes. So the first 4 men
were unaffected. They would still eat for free. But what about the other 6 -- The Paying Customers?
How could they divvy up the $20.00 windfall so everyone would get his "Fair Share?"
The 6 men realized that $20.00 divided by 6 IS $3.33. But if they subtracted that from everybody's
share, Then the 5th and 6th 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 as if it were a tax cut. All ten
agreed this would be fair so the owner proceeded to work out the new amounts each should pay.
Now the first 5 men pay nothing, The 6th paid $2.00; The 7th $5.00; The 8th $9.00; The 9th $12.00;
Leaving the 10th with a bill of $52.00 instead of his earlier $59.00.
Each of the 6 was better off than before and the first 4 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
$20.00 declared the 6th man. He pointed to the 10th saying "But he got $7.00!"
"Yeal, that's right," excaimed the 5th man. "I only saved a dollar, also. It's unfair that he got
7 times more than me!"
"That's true!" Shouted the 7th man. "Why should he get $7.00 back when I got only $2.00? The
wealthy get all the breaks!"
"Wait a minute," Yelled the first 4 men in unison. "We didn't get anything at all. The system
exploits the poor!"
The 9 men surrounded the 10th and beat him up. The next night he didn't show up for dinner, so
the 9 sat down and ate without him. But when it came time to pay the bill, They discovered something
important. They were $52.00 Short!!!!
And that, Ladies and Gentlemen, 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 to much; attack them for being wealthy, and they just may not show up at the table.
UNFORTUNATELY.....MANY LIBERALS CAN'T SEEM TO GRASP THIS STRAIGHT FORWARD LOGIC!!!!
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