Lets 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, and the tenth man — the richest — would pay $59. Thats 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 (in tax language a tax cut). Since you are all such good customers, he said, Im going to reduce the cost of your daily meal by $20. So now dinner for the ten only cost $80.00. 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 everybodys 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 mans 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 who pointed to the tenth. But he got $7! Yeah, thats right, exclaimed the fifth man, I only saved a dollar, too . . . Its unfair that he got seven times more than me!. Thats 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 didnt get anything at all. The system exploits the poor! The nine men surrounded the tenth and beat him up. The next night he didnt show up for dinner, so the nine sat down and ate without him. But when it came time to pay the bill, they discovered, a little late what was very important. They were FIFTY-TWO DOLLARS short of paying the bill! Imagine that! 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. Where would that leave the rest? Unfortunately, most taxing authorities anywhere cannot seem to grasp this rather straightforward logic! T. Davies Professor of Accounting & Chair, Division of Accounting and Business Law The University of South Dakota School of Business 414 E. Clark Street Vermillion, SD 57069 Phone: 605-677-5230 Fax: 605-677-5427 Read more at snopes/business/taxes/howtaxes.asp#TGzzR0lokbQP8kBx.99 Note: AAPTards also cannot grasp this logic. This is why they are common man who want to beat up the rich corporates even though that means there will be no electricity and other privileges and we will all go back to the old days without modern resources. Thats why this is how they are pitching to the common man to vote for them: youtu.be/-LieheyXS54 These common idiots can work together to tear down the corporates but they cannot reproduce or produce the things that the corporates produce for them.
Posted on: Sat, 05 Apr 2014 23:43:14 +0000
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