Tax Season Start
Long read if you want to understand Tax if not just ignore it.
Taxes in America finally explained. Since it is tax season, let's put tax cuts in terms everyone can understand.
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,
A,B,C,D (the poorest) would pay nothing.
E $1.
F $3.
G $7.
H $12.
I $18.
J (the richest) would pay $59.
The owner threw them a curve: I'm going to reduce your daily beer by $20. Drinks for the ten now cost just $80. The bar owner suggested that it would be fair to reduce each man's bill by roughly the same amount.
A,B,C,D,E (the poorest) would pay nothing.
F $2. 33%savings = $1
G $5. 28%savings = $2
H $9. 25% savings = $3
I $14. 22% savings = $4
J (the richest) would pay $49. 16% savings = $10
But once outside the restaurant, the men began to compare their savings.
F "I only got $1 out of the $20, but J got $10!"
E "Yeah, that's right, I only saved $1,too. It's unfair!"
H "Why should J get $10 back when I got only $2? The wealthy get all the breaks!
A,B,C,D "Wait a minute, We didn't get anything at all. The system exploits the poor!
So all 9 men beat up J.
The next night J 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 or among all of them for even half 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 drinking overseas where the atmosphere is somewhat friendlier.
Zpeed
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