Our tax system, sad but true.
 

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!

Yeah...texas taxes are gay

Nice post! :bow:

Haha...it was mad in a joke form but it's very true! :yes:

good perspective on it, the theory on leak down economics(i think that was what it was called) is since the rich have extra money to spend they will, thus bringing the economy up, however they already have the abundace of money, sure they can buy another car, maybe another house, but they had the money already to buy the goods. its most obvious in sports starts... lets say they make 10 mill a year after taxes... they need probobly 1 mil MAX to cover their spendings on all their current possesion, so they have 9 mil laying around to play with, now you give them a tax cut, now they have 2 more mill... what does it really matter to them, it sounds good in theory that the rich(top 10% or whatever) have more money to spend, but they really were never pushed for cash, so the tax cut only increases their bank account, not the economy

Dude...with sports...they have a whole bunch of other things to spend money on like trainers, insurance (which is really high), etc.

I think it was Dalmer Chrysler that got a tax refund because they made so much money.
Hrmmm how does that werk?

Glad you can understand the system as most intelligent people do. Too bad this country will believe anything they see for 2 minutes at night when a liberal gets on NBC Nightly News saying how the rich are getting all the money back. Too bad people arent smarter in this country... ignorance is NOT bliss...

so true, and you americans dont even have it that bad. If you make over 100k/year here in Canada you get a 50% income tax for every dollar after that. Now take into consideration that only 2% of our population makes that kind of money and you have to wonder why make all this fuss over a small section of the population. Some families pulling in 300k/year pay more taxes then 3/4 of the working population make in a year.

Not to mention @15/hour i pay some 24% income tax on my money, i get it back every year because i'm a student but it still bugs me that i can get taxed so much... thats why i take cash alot more often! ;)

When i got paid 7.75 for washing dishes...i paid over 30% income...i got it all back too...but i don't really give a shit about it...whatever helps out our country is good

it's always nice to only have to pay federal taxes and not have to pay state...but your taxes pay for me protecting the country (aka car payment, cable, cell phone etc.)

chris

i get health care with my taxes....

Is the answer 4? BTW Kyle wtf you mean taxes in TX suck?? You don't have to pay any state tax!

this isn't about state taxes...it's about income tax...
and just because i don't pay it doesn't mean i don't know shit

Well said :bow: Unfortunately, many people just turn on the TV and believe what they hear without thinking for themselves. That, mixed with a largely liberal media leads to negative feelings toward the wealthy, etc.

What are you talking about?? I don't pay state taxes either.. who says you don't know shit? lol

I guess the moral of the story is get on welfare.. Youll make out the best..:crazy:

*Just kidding*

Seriously though.. Thats a good post.;)

You think your taxes are bad?

****ing gov. Gray Davis is raising our taxes across the state 1% higher. EVERYBODY knows cali taxes are the gayest. Now we have the highest in the nation...... not only is he raising taxes, hes also cutting off more money from education in order to pay off debts. hes a little cunt sucker I swear..... I was supposed to get a 1K grant from the government because of my grades, and now that isnt happening. NOT TO MENTION it also increases the tuition of UC schools. HE IS SO ****ING GAY I HATE THAT *****

I hope he dies...... Our tax rate is now (Orange county) 8.75% and in Los Angeles, 9.25% ....... that is ****ED UP


Sorry had to vent.

Canadians get compensated for their taxes through free medical care though.

Right, now let's pay attention to what intellectuals (oh, no, they tend to be liberal!) have to say about economics, not just businessmen.

Give a rich man money, and he gets richer. That's the definition of rich - you have enough money that you don't have to worry about it.
Give a poor man money, and he buys food, clothes, a car, a house.

The poor man spending money gives *real* strength to an economy because it touches the actual productivity of the state. This is the job of the government - to help the real economy.

The initial anecdote in this discussion is flawed. Rich people don't disappear in the real world. There's no exodus of wealthy Americans to countries that treat them better. Wealth is redistributed, and people 1-9 get wealthier and can afford more of the meal.

The only net flux to the country is through trade, which is more affected by consumer demand, which in turn is shaped by the average american Joe, not the average american rich guy.

^ yup, i dont wana think too much about this though, i have micro economics in an hour ;(

Paying taxes sucks... but lots of states will be following Cali in the next few months in raising income and sales taxes. I think 37 states have completely wiped out their slump funds, we're still in the recession, state incomes are way down after a slow holiday season, and the federal plan has very, very little in it to bolster the state budgets.