We have four years to get this message to liberals
Let's put tax cuts in terms everyone can understand. Suppose that every day, 10 men go out for lunch and the bill for all 10 comes to $100.
If they paid their bill the way we pay our taxes, using the progressive tax formula, the billing would go like this:
The first four men (the poorest) would pay nothing.
The fifth would pay $1.
The sixth would pay $3.
The seventh would pay $7.
The eighth would pay $12.
The ninth would pay $18.
The tenth man (the richest) would pay $59.
So, the majority of the men voted democratically to do that.
The 10 men ate in the diner every day and seemed quite happy with the arrangement, until one day the diner owner surprised them. "Since you are all good customers," he said, "I'm going to reduce the cost of your daily dinner by $20. Lunch for 10 now cost just $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 men, the paying customers? How could they divide the $20 windfall so everyone would get his fair share?? They realized that $20 divided by six is $3.33. But if they subtracted that from everybody's bill, then the fifth man and the sixth man would each end up being paid to eat. That didn't seem fair.
So, the owner suggested reducing each man's bill using the US tax formula.
Then he presented the amounts each should pay.
The fifth man, like the first four, now paid nothing (100% savings).
The sixth now paid $2 instead of $3 (savings 33%).
The seventh now pay $5 instead of $7 (savings 28%).
The eighth now paid $9 instead of $12 (savings 25%).
The ninth now paid $14 instead of $18 (savings 22%).
The tenth now paid $49 instead of $59 (savings only 16%).
Each of the six was better off than before and the
first four continued to eat for free. But outside the
diner, the men compared their savings without any sense of thanks. "I only got a dollar out of the $20," declared the sixth man. He pointed enviously to the tenth man, "but richie got $10!" "That's right," exclaimed the fifth man. "I only got a dollar back. It's unfair that the richest guy got ten times more than I got!" "Yeah!" shouted the seventh man.
"Why should he get $10 back when I got only $2?
The wealthy get all the breaks!" "Wait a minute," yelled the first four men in unison. "We did not get anything at all. The US system exploits the poor!" Then the nine men surrounded the tenth and beat him up. The next day the tenth man didn't show up for lunch, so the nine ate without him. But when it came time to pay the bill, which was $72 -they discovered something important. They only had 51 dollars which only covered 70% of the bill!
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 eating in Canada where the atmosphere is friendlier. And then they might even move there or to a tax friendly country.
Rush Limbaugh and Tom Golisano both moved to Florida to escape the high NY State Taxes.
[SIZE=+1]The True Story of Taxes [/SIZE]
Let's put tax cuts in terms everyone can understand. Suppose that every day, 10 men go out for lunch and the bill for all 10 comes to $100.
If they paid their bill the way we pay our taxes, using the progressive tax formula, the billing would go like this:
The first four men (the poorest) would pay nothing.
The fifth would pay $1.
The sixth would pay $3.
The seventh would pay $7.
The eighth would pay $12.
The ninth would pay $18.
The tenth man (the richest) would pay $59.
So, the majority of the men voted democratically to do that.
The 10 men ate in the diner every day and seemed quite happy with the arrangement, until one day the diner owner surprised them. "Since you are all good customers," he said, "I'm going to reduce the cost of your daily dinner by $20. Lunch for 10 now cost just $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 men, the paying customers? How could they divide the $20 windfall so everyone would get his fair share?? They realized that $20 divided by six is $3.33. But if they subtracted that from everybody's bill, then the fifth man and the sixth man would each end up being paid to eat. That didn't seem fair.
So, the owner suggested reducing each man's bill using the US tax formula.
Then he presented the amounts each should pay.
The fifth man, like the first four, now paid nothing (100% savings).
The sixth now paid $2 instead of $3 (savings 33%).
The seventh now pay $5 instead of $7 (savings 28%).
The eighth now paid $9 instead of $12 (savings 25%).
The ninth now paid $14 instead of $18 (savings 22%).
The tenth now paid $49 instead of $59 (savings only 16%).
Each of the six was better off than before and the
first four continued to eat for free. But outside the
diner, the men compared their savings without any sense of thanks. "I only got a dollar out of the $20," declared the sixth man. He pointed enviously to the tenth man, "but richie got $10!" "That's right," exclaimed the fifth man. "I only got a dollar back. It's unfair that the richest guy got ten times more than I got!" "Yeah!" shouted the seventh man.
"Why should he get $10 back when I got only $2?
The wealthy get all the breaks!" "Wait a minute," yelled the first four men in unison. "We did not get anything at all. The US system exploits the poor!" Then the nine men surrounded the tenth and beat him up. The next day the tenth man didn't show up for lunch, so the nine ate without him. But when it came time to pay the bill, which was $72 -they discovered something important. They only had 51 dollars which only covered 70% of the bill!
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 eating in Canada where the atmosphere is friendlier. And then they might even move there or to a tax friendly country.
Rush Limbaugh and Tom Golisano both moved to Florida to escape the high NY State Taxes.
