Tax cuts explained in simple language.

Jeslek

Banned
Suppose that every day, 10 men went out for dinner. The bill for all 10 came to $100. They decided to pay their bill the way we pay our taxes, so they divided the bill like this:

The first four men - the poorest - would pay nothing. The fifth would pay $1, the sixth $3, the seventh $7, the eighth $12, the ninth $18, and the 10th man - the wealthiest - would pay $59.

One day the restaurant owner threw them a curve (in tax language, a tax cut).

"Since we've been overcharging and spending money frivolously I've decided to cut our spending and to pass on the savings to you.'' he said, "I'm going to reduce the cost of your daily meal by $20.''

The group still wanted to pay the 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 would 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 at the restaurant owner's suggestion, they arrived at this new distribution: The fifth man paid nothing, the sixth pitched in $2, the seventh paid $5, the eighth paid $9, the ninth paid $12, leaving the 10th man with a bill of $52 instead of his earlier $59. Each of the six was better off, 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, then, pointing to the 10th. "But he got $7!'' "Yeah, that's right,'' exclaimed the fifth man. "I only saved a dollar too. It's unfair that 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 lesson here is one that congressional opponents of President Bush's efforts to reduce income taxes well understand. But for political reasons they have chosen to engage in class warfare, deliberately misleading their constituents with speeches decrying administration tax policies that "favor the rich.''


This is adapted from a column by Edwin Roberts in the Tampa Tribune.
 
And then one of the men who paid nothing gets a rebate and takes flying lessons... :shrug: Neat how it works. Ain't it? :D
 
yup, I got back most of the money I had paid last year, which is mine anyways. (Because I make so little.)
 
The United States tax policies do favor the rich. Not, however, at the expense of the poor. If you work it out though, you can keep the gov't a little at bay. I haven't had a refund or payment in 15 years that was over a hundred dollars.
 
chcr said:
The United States tax policies do favor the rich. Not, however, at the expense of the poor.

Explain yourself. If the poor don't pay taxes how can teh tax system favor the rich?
 
It screws the middle class Gonz. Once again, we're talking about cost of living versus real dollars. The poor get an advantage in not paying taxes, the rich get tax breaks and incentives and we (that's you and me and simple folks like us) carry the load. I know you guys don't agree with this, but just try this. You make 50,000 and pay 12.5K in taxes, another guy makes 500,000 and pays 200,000 in taxes. Who's better off? Seems to me he has 300,000 left. By the way, you do understand that the 500K guy would actually pay a smaller percentage in the real world, regardless of his actual tax bracket, don't you?
 
I don't know why Jiz is so worried about the American tax system when he's busy not paying taxes in Canada...
 
chcr said:
It screws the middle class Gonz. Once again, we're talking about cost of living versus real dollars. The poor get an advantage in not paying taxes, the rich get tax breaks and incentives and we (that's you and me and simple folks like us) carry the load. I know you guys don't agree with this, but just try this. You make 50,000 and pay 12.5K in taxes, another guy makes 500,000 and pays 200,000 in taxes. Who's better off? Seems to me he has 300,000 left. By the way, you do understand that the 500K guy would actually pay a smaller percentage in the real world, regardless of his actual tax bracket, don't you?

Where as it seems to me that he got raped for 40% of his earned income, where the 50k a year guy got raped for only 25%. How you manage to get biased toward the rich out of that is beyond me.

I'm familiar with the concepts of buying power, cost of living, and poverty lines. I'm also familiar with the concept of parity. Are you?
 
Q said:
I don't know why Jiz is so worried about the American tax system when he's busy not paying taxes in Canada...
edited for content.
Sam

Seems to me he has 300,000 left.
Well duh, he made more money.

By the way, you do understand that the 500K guy would actually pay a smaller percentage in the real world, regardless of his actual tax bracket, don't you?
How come he pays a smaller percentage? Explain.
 
Jeslek said:
Q said:
I don't know why Jiz is so worried about the American tax system when he's busy not paying taxes in Canada...
oops forgot it here.
Sam

Seems to me he has 300,000 left.
Well duh, he made more money.

By the way, you do understand that the 500K guy would actually pay a smaller percentage in the real world, regardless of his actual tax bracket, don't you?
How come he pays a smaller percentage? Explain.

:tardbang:
 
ok.

LOOK.

if someone wants to make a fool out of themselves with doubletalk and inane blathering, let them do it. Heckling and bringing up the same old shit over and over only serves to make everyone else irritable and jumpy...which spreads the grumpiness over the whole board...and we end up with a situation like we had a couple weeks ago.

Leave it alone, let him babble, and have done with it :cuss:

Jeslek, whatever may prompt you to reply in your defense, threats such as that are not acceptable.
 
Incentives, tax breaks, loopholes....
Plus, he can afford a highly trained accountant (whose fee he deducts next year), I can afford a time server at HR Block.
It's called the real world, and it's where I live.

HomeLAN said:
m familiar with the concepts of buying power, cost of living, and poverty lines. I'm also familiar with the concept of parity. Are you?
Sure I am. Again, it's the difference between the real world, and the intended one.
 
chcr said:
Incentives, tax breaks, loopholes....
Plus, he can afford a highly trained accountant (whose fee he deducts next year), I can afford a time server at HR Block.
It's called the real world, and it's where I live.
I don't understand how he ends up paying a lower percentage tax. If you pay 40% tax on $1 million, you pay $400,000. Now after all those deductions you are certainly not going to end up at 15% or $150,000.
 
as far as I recall, she's not gone as far as uttering threats...she's just calling things as she sees it.
 
Exactly. I don't think she's ever said anything like FUCK OFF YOU DISGUSTING LITTLE TWERP, or even anything close to it, but this is easily the fifth time I've seen you tell her to fuck off. Perhaps someone needs to grow up.
 
I did not utter a threat. But you're doing an excellent job of showing how non-partial you are. You keep asking not to push buttons, but when someone does you don't do anything. And when the person then defends, you come back with don't do that. When was the last time you saw me deliberately inciting anger at someone? Come on, when was the last time I pushed buttons first?
 
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