Taxes - the rest of the Story

Let's put tax cuts in terms everyone can understand.

Suppose that every day, 10 women 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 women (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 woman (the richest) would pay $59.

So, the majority of the women (8-2) voted democratically to do that.

The 10 women ate at the diner every day and seemed quite happy with the arrangement, until one day the bar owner surprised them. "Since you are all good customers," he said, "I'm going to reduce
the cost of your lunch $20. The total bill for 10 now cost just $80.?

The group still wanted to pay their bill the way we pay our taxes, so the first four women were unaffected. They would still eat for free. But what about the other six women, the paying customers? How could they divide the $20 windfall so everyone would get her ?fair share??


They realized that $20 divided by six is $3.33. But if they subtracted that from everybody's bill, then the fifth and sixth women would each end up being paid to eat lunch. That didn?t seem fair.

The group still wanted to pay their bill the way we pay our taxes, so the first four women were unaffected. They would still eat drink for free. But what about the other six women, the paying customers? How could they divide the $20 windfall so everyone would get her ?fair share??

So, the bar owner suggested reducing each man's bill using the US tax formula. Then he presented the amounts each should pay.

The fifth woman, like th first four, now paid nothing (100% savings)
The sixth woman now paid $2 instead of $3 (33% savings)
The seventh now pay $5 instead of $7 (28%)
The eighth now paid $9 enstead of $12 (25%)
The ninth now paid $14 instead of $18 (22%)
The tenth now paid $49 instead of $49 (only saved 16%)

Each of the six was better off than before and the first continued to eat for free. But ouside the diner, the ladies compared thier savings., without any sense of thaks.

"I only got a dollar of the $20" declared the sixth woman. She pointed enviously to the tenth woman, "but the richie got $10.
"Thats right, exclaimed the fifth woman "I only got a dollar back. Its unfair that the richest guy got ten times more than I got"
Yeah shouted the seventh woman "Why should he get $10 back when I got only $2?" Then the nine women surrounded the tenth and beat her up.

The next night the tenth woman didn't show up for drinks, so the nine ate without her. But when it came time for the bill, they discovered something important. They didn't have enough money from all of them for even half of the bill.

And that boys and girls, is how our tax system works. The people who pay the highest taxes get the most benefit form a tax reduciton. Tax them oo much, attack them for being wealthy and they just may not show up anymore. In fact, they might start taking their business overseas where the atmosphere is friendlier; and with less goverment regulations.


Oh, one other thing, the poor (though $ rich) 10th lady missed luch because she was having trouble seek health care under HIllarys universial medical plan

 

I was trying to post the entire story, but would not take so I had to retype the rest (instead of pasting) So if you have looked at the story before 1145 am Sat 8 Mar, be sure to take a nother look at it.

Salty

 

I would have answered sooner, but I was trying to complete the post - just couldn't figure why I couldn't paste the entire email.

But anyways, what is a fair share: I say the E-TAX

Everyone pays .33%. No execptions, no exemptions everyone pays the same.
Now take a close look. .33 % - thats point 33%

So the tax on 100 dollars would be 33 cents
....the tax on- 10 dollars would be 3 cents