The REAL Truth About Taxes....

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The Truth about Taxes

by Anonymous



"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!
 
Thank you for the extremely simple and extremely precise post!



Too bad that isn't the quality of educational materials available in Liberal 101 at most universities in the US these days... ... . :rolleyes:
 
tax break

Too bad the rich guy usually claims he's broke because of the new Mercedes limo he just bought to get to the restaurant...
 
Or claims

The richest always has a lawyer that can find a loophole or deduction, writeoff, to get out of paying all together. Meanwhile the country goes farther and farther in dept under conservative rule! How can you or this nation have any faith in the present administration if they cannot even balance there own budget? I have to balance my checkbook and budget, how can they justify? And the rich get richer... . :D All to get another vote in 2004. Back to good ole trickle down, which didn't work then and won't work now.



The problem is, the democrats have no one better, both partys have not a clue!:--)
 
Let us not forget that the previous admin NEVER submitted a balanced budget. NEVER! And they also enacted the largest peace time tax increase in history. It was not until some umm... "changes" occurred in '94 that we began to see a little fiscal responsibility.



Today the national debt, as a percentage of GNP, is the smallest in history.



The other side of the equation which seems to be ignored, is Federal spending. The answer is always more money! Whether it has worked historically or not, more money!!!



Federal tax revenues dramatically increased after Reagan's tax cuts in '81. That is fact. The economy boomed after those tax cuts. That again is fact.



Tax cuts are needed now. It will help all of us, despite the rhetoric and other lies spread by the left.



Individual Americans know far better how to spend their income than the bureaucrats in Washington do. Why put the money in the Fed's hands? It isn't theirs in the first place! (That notion is radical I know, but it's still true. )



A family of four earning $39,000 annually will see a tax cut of $1100 annually. 92 million Americans will see their federal taxes cut.



So much for this tax cut being aimed at the rich.



And speaking of rich Americans, 9 out of the twelve richest Senators are Democrats. These guys love to tell us how the represent the little guy. What do they know? What do any of them know about the little guy?



I'd love to see a "real" reality series on TV. None of this tropical paradise stuff. Give one of these smartass Senators a $40K job and a time clock. Make him put in his time and see 50% of his check evaporate in taxes while feeding a family of four. Let him see thousands and thousands of tax payer money dumped into the school system per student and watch education get worse and worse.



We need the flat tax or the National sales tax. Put Congress out of the tax code writing business. Want to clean up politics? There's your start.



George W. hit a homer yesterday as far as I'm concerned. Tax cuts, tort reform, restrained federal spending... all the traditional conservative standards.



It's time for Congress to wake up and take care of business.



Tim



The quickest way to become known as a radical is to start quoting the Constitution.
 
I'm the first to agree that putting the money back into the hands of the people that earn it is much better for the economy than giving it to the 'government'.



The economy could rebound rather quickly if fuel prices would drop by $. 25 to $. 35 per gallon.



Diesel fuel is averaging $1. 50 today. Our economy balances on the price of diesel fuel.



Just giving more money back to people so they can spend it on fuel and sustain the current high prices of fuel will not spur the economy. It will only temporarily satiate the greed of the oil barrons and we will continue at the current pace - a slow economy with high fuel prices and higher un-employment.



There are no oil shortages. The price of fuel is high because of higher fuel taxes and oil company greed.



It's just a piece of the big puzzle, but a very important piece.
 
I love it when the libs get on TV and talk about the rich getting tax breaks, and the poor getting nothing.



Hmmm how many poor people create jobs?
 
How many?

How many rich work or have to work? The ND was at it lowest in thirty years at the end of the Clinton years. Everyone talks about how great it was during the Regan years, I saw none of it. Trickle down where? It never hits the bottom, he11 it never hits the middle. Economy boomed during the Regan years? It didn't boom until Clinton took office, and of course the Republicans take credit for that to.



Money talks, bull walks. When it comes to the economy Bush has not a clue. Everytime he thinks of stimulating the economy, all he can think of is cutting taxes. It is a one track mind with a one way ticket to overwhelming National debt and depression! How can any invester have faith in the economy when the signs are all there of war, debt, spending, and lack of income for the goverment budget? The first tax cut he gave us back didn't help, did it? Shortly after the economy took a dump... ...



Yes, we do need a flat tax. We also need someone who can bite the bullet and tell the American people the truth (even if it does cost him votes) about our economy.
 
Its not how much you make its how much you keep!! I would prefer to keep what I earn and invest in myself and I bet I could do a far better job than the Government that sees me as a social security number.
 
I must be dumber than a rock seems like if you cut tax and at the same time increase the dept to pay for more education and support for the military , and at the same time say a pay raise for the troops is much have to cut it some % . If the people get a thousand or so they will pay it back ten fold . Leave the tax as it is If you have a job and can pay tax it is better than not having a job and not paying any tax . Increase the min wage to eight dollars and start a W . P. A . like we Had back in the thirty's when NRA stood for National Recovery ACT . Most things built then were WPA projects and put the country to work . That would put the skilled semiskilled and laborer to work then the money for wages and goods material , and all allied industry to support the efforts and that how the money would get down to the people . Rich and poor and sick lame and lazy retired ,all pay tax and all should have a say on how the money is spent . Giving money to people is not a way to get things moving starting jobs goods and service . This country can not have service police fire Hospital water sewer and other things we take for granted with out paying for them . Time to think of how to do all that needs to be done with out a big giveaway program . Leave the tax as is we can not stand a tax brake a gain . Pay now or pay plenty later. Ron in Louisville :-{} :confused:
 
My point was directed toward social security. I understand your point Ron. We cant have the security we have and all without some taxes to support it. Give me my social security money every year and let ME Invest My money. I will pay the other taxes as I do now with much zeal and excitement. Take care
 
taxes

What is considered "rich" by the US government is a household income of $93K or more per year. That's all.



Although some here will immediately poo poo this and claim it to be biased, Rush Limbaugh's site has a document, directly from the IRS, that breaks down what income levels pay in taxes in percentages. Again, this is actual IRS data.



So when the Dems go off about how the rich get the breaks, it's because they're ones paying the most taxes.



I'll take any tax break I can get. If you don't want yours send it back to the Treasury and tell 'em to keep it and they can continue to distribute it to the UN and other worthy causes.



Tim



Shrug Atlas Shrug!
 
Actually

Actually, the classes according to income are all relevent. If you live in a low cost of living area a person or family can get by with 25,000 a year. If you are making 50,000 in the same area, you may be considered middle. 100,000 in the same area would be well healed, but in a big city would be lower middle. 25,000 in a big city would be poverty.
 
I don't understand the attitude toward the "rich" and "big business". Big Business = Jobs, and most "rich" folks earned their money, even if it was given to them then so what, as my daughter would say, "Jealous"?
 
Originally posted by Boomer II

I don't understand the attitude toward the "rich" and "big business".



I agree, why do people feel that just becasue someone has more money they should have to pay more?



my take on Taxes, with tax money you are buying a service, roads, military, police, social security (yeah right!). Do people paying 50K/year in taxes get more "services" than those paying 10K/year?
 
Income

We are all getting off the point. How many really think that the present administration is doing the right thing for America?



I would much rather see the general economy (stocks, bonds, mutual funds, and other investments) come up and a balanced budget for the nation. Or at least a start on getting rid of the debt in Washington. This is a "quick fix" and a check for a paltry amount while the nation goes another few billion in debt and the general economy goes farther down the tubes. Example is the stock market which took another tumble when Bush anounced his tax cuts. Big buisness and investers know something, why can't the administration figure it out? Keep handing out money and spending, the pot will be empty soon.



This is like "Here have a candy bar people. " when the nation is starving. I really don't care who is getting the tax break, it is a BAD idea.
 
It is always better to earn more than you spend. Sure you may need to go into debt to continue earning, but how much weight will the branch hold.

When the GLOBE sees the US really trying to pay off debt, money flows into US investments, jobs are created and the economy prospers.

Most of the so called rich (corporations) have taken all their manufacturing out of US already, with more to follow. How could 10,000 longshoremen on the West Coast stall the National Economy like they did? Because this government has allowed the US to become dependent on Slave labor markets around the Globe. We import almost everything and have become a nation of paper shufflers, and fast food workers.

Another tax cut and more deficit spending! It might work, I seriously doubt it. My only consolation--I will not be around to help pay back.

IMHO
 
Originally posted by johnryan

Most of the so called rich (corporations) have taken all their manufacturing out of US already, with more to follow. How could 10,000 longshoremen on the West Coast stall the National Economy like they did? Because this government has allowed the US to become dependent on Slave labor markets around the Globe. We import almost everything and have become a nation of paper shufflers, and fast food workers. IMHO



You got that right!!
 
Originally posted by Ron Bissett

Increase the min wage to eight dollars and start a W . P. A . like we Had back in the thirty's when NRA stood for National Recovery ACT .



I think you are being cold and heartless. Minimum wage should be $100/hour. That way the poor could afford to buy that $40 loaf of bread and $45 per gallon gasoline. Shoot let's raise it to $500/hour. That would make the poor even richer. Not to mention it would make all the old folks living on their savings into paupers.
 
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