Good one.

[Tony Radford]

Some of you may have seen this, but I though it was good enough to share.

Let's 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
The tenth man (the richest) would pay $59.

So, that's 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.
"Since you are all such good customers," he said, "I'm going to
reduce the cost of your daily meal by $20." So now dinner for
the ten only cost $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, 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 everybody's share, then the fifth man and the sixth man would each end up being "paid" to eat their meal.

So the restaurant owner suggested that it would be fair to reduce each man's bill by roughly the same amount, and he proceeded to work out the amounts each should pay. And so:

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

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. He
pointed to the tenth. "But he got $10!"

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

"That's true!" 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 didn't
get anything at all. The system exploits the poor!" The nine men
surrounded the tenth and beat him up.

The next night the tenth man didn't show up for dinner, so the
nine sat down and ate 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!

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 at the table anymore. There are lots of
good restaurants in Europe and the Caribbean.

David R. Kamerschen, Ph.D
Distinguished Professor of Economics
536 Brooks Hall
University of Georgia
Athens, Georgia 30602-6254

[392cobra]

Tony,
EXACTLY !!!

There are way too many people living in America paying NOTHING towards all the benefits they receive from just living here.

Many are getting refunds after paying in ZERO.

Maybe if EVERYONE paid in,become vested,things would start to change.

[mzhun]

You have opened pandoras box that will certainly have to be shifted to the lounge. I myself am ready to do the a$$ whipping and leave the table!

[redUnique]

Tony,

That's a great story to put things into perspective. I can certainly relate as I just went out to dinner with my wife and two kids. We all ate dinner but my two year old, five year old, and wife didn't pay dime. Yeah, that's right, I got stuck paying the entire $30 bill! What's up with that!

By the way, the good professor forgot to mention that the 10th man didn't even get full credit for his deductions (charitable or other).

Joel

[hoppy]

Many are getting refunds after paying ZERO



As Lucy would say "Splain me".

[Matt Smith]

lotsa folks get money back from tax credits-but they don't make enough to be taxed in the first place. personally i don't ever knock a working man-no matter his income, but there are those freeloaders( the first four ) who need to be whooped or sent to france where they belong .you don't have to agree with my outlook, but as a taxpayer(no refunds) you do have to listen as i am contributing to the bill.

[Matt Smith]

Btw, I am going to the carribean next weekend, maybe I will run into some of the #10 guys, and I will thank them for the dinners!