For the Liberal Who Thinks "Tax Cuts" are a Bad Idea

[Timberwolf]

Suppose that every day, ten men go out for beer 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.<o></o>
The sixth would pay $3.
The seventh would pay $7.
The eighth would pay $12.
The ninth would pay $18.<o></o>
The tenth man (the richest) would pay $59.<o></o>

<o></o>So, that's what they decided to do. The ten men drank in the bar 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 beer by $20. Drinks for the ten now cost just $80.<o></o><o></o>

The group still wanted to pay their bill the way we pay our taxes so the first four men were unaffected. They would still drink 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 drink his beer. So, the bar owner suggested that it would be fair to reduce each man's bill by a graded procedure, and he proceeded to work out the amounts each should pay.!<o></o><o></o>

And so:<o></o>

<o></o>The fifth man, like the first four, now paid nothing (100% savings).
The sixth now paid $2 instead of $3 (33%savings).<o></o>
The seventh now pay $5 instead of $7 (28%savings).<o></o>
The eighth now paid $9 instead of $12 (25% savings).<o></o>
The ninth now paid $14 instead of $18 (22% savings).<o></o>
The tenth now paid $49 instead of $59 (16% savings).<o></o>

<o></o>Each of the six was better off than before. And the first four continued to drink for free. But once outside the restaurant, the men began to compare their savings.<o></o><o></o>

'I only got a dollar out of the $20,'declared the sixth man. He pointed to the tenth man,' but he got $10!'<o></o><o></o>

'Yeah, that's right,' exclaimed the fifth man. 'I only saved a dollar, too. It's unfair that he got ten times more than I!'

'That's true!!' shouted the seventh man. 'Why should he get $10 back when I got only two? The wealthy get all the breaks!'<o></o><o></o>

'Wait a minute,' yelled the first four men in unison. 'We didn't get anything at all. The system exploits the poor!'<o></o><o></o>

The nine men surrounded the tenth and beat him up.<o></o>

<o></o>The next night the tenth man didn't show up for drinks, so the nine sat down and had beers without him. But when it came time to pay the bill, they discovered something important. They didn't have enough money between all of them for even half of the bill!<o></o><o></o>

And that, boys and girls, 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 drinking overseas where the atmosphere is somewhat friendlier.<o></o><o></o>

For those who understand, no explanation is needed.<o></o>

For those who do not understand, no explanation is possible.

[TeenageRepublican]

Classic.

[Wolfcounsel]

That is correct TW. Liberals will never understand that story. It's like hiring a magician to perform for pre-nursery school children.

[DeclinetoState]

One problem with that story is that there's way too much arithmetic involved.

[TheIrishman]

Why should the man with a million income get anything back? He doesn't need it. $1500 wouldn't even pay his monthly country club bill!!

[Wolfcounsel]

"Why should the man with a million income get anything back?" --TheIrishman

You're right. He needs more money stolen from him by the benevolent givernment so that he can provide welfare checks for the fat and lazy fellow human beings.:punish::whip:

[TheIrishman]

NO Wolf. But the idea is to stimulate the economy, right? WHO will spend the money, and almost immediately, on necessities. The millionaire?? Hardly. The poor man who needs food, rent, clothes, etc. It will be gone before the check arrives.

[Eagle1]

Irishman been hittin the sauce a little much.
A million a year may be enough to put you into the top income bracket, but it isn't "rich". After taxes you would be lucky to end up with half of that, moreso if you own your own business and employ people.
The more the millionaire has the more jobs can be created. The poor man can then get a job instead of depending on us for a check. The real stimulation does not come from people buying food, it is from investment.

[oldcoastie]

A high percentage of the money will be used to pay off bills.

[DeclinetoState]

Why should the man with a million income get anything back? He doesn't need it. $1500 wouldn't even pay his monthly country club bill!!
<!-- / message -->Irish, your real name wouldn't happen to be Ted Kennedy, would it?

[Kathy30]

Liberals will NEVER understand how the economy works. Not ever. In the liberal bar scenario, the man who pays most of the bar bill should not only pay the entire bar bill, but give some extra to the others just to be fair.

To the lib, only being UNFAIR is fair.

I learned that with the recent California election where we were voting on allowing four indian tribes to expand their casinos. It isn't FAIR that they should make more money while poor indian tribes made no money from the casinos owned by the rich tribes. Make them SHARE!

[TeenageRepublican]

Tax should be considered a cussword.

Go tax yourself.

[CzechPrince]

Irishman been hittin the sauce a little much.
A million a year may be enough to put you into the top income bracket, but it isn't "rich". After taxes you would be lucky to end up with half of that, moreso if you own your own business and employ people.
The more the millionaire has the more jobs can be created. The poor man can then get a job instead of depending on us for a check. The real stimulation does not come from people buying food, it is from investment.

I'm sorry, but you don't think $1,000,000 dollar income, or even your, "estimation" of $500,000 dollar income isn't rich?

I'm not advocating a tax increase, I'm just astounded at this assertion that's all. Not to mention, someone making that kind of money no doubt (most of the time) has plenty of write offs, loop holes, and countless other investments to save them more of their income.

Flat tax rate is the best way to go.