Discussion in 'The Lounge' started by bobsurf, Jan 10, 2003.

1. ### bobsurf1/2 ton status

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Tax Cuts---A Parable

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.

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 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 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. He pointed
to the tenth. "But he got \$7!"

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

"That's 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 didn't get
anything at all. The system exploits the poor!"

The nine men surrounded the tenth and beat him up. The next night he
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 were \$52 short!

And that, boys and girls, journalists and college instructors, is how
the tax system works. The people who pay the highest taxes should 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.

2. ### newyorkin1 ton status

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Tax them too much, attack them for being wealthy, and they just may not
show up at the table anymore.

[/ QUOTE ]

Like Leona Helmsley and Al Capone?

One thing left out is a lot of corporate entities that should pay taxes but don't, for one political reason or another.

Otherwise, very nice metaphor!! I agree with it.

3. ### Goober1/2 ton status

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Very good analogy, <font color="orange"> bobsurf
</font color>.

/forums/images/graemlins/thumb.gif /forums/images/graemlins/thumb.gif /forums/images/graemlins/thumb.gif /forums/images/graemlins/thumb.gif /forums/images/graemlins/thumb.gif

Like Leona Helmsley and Al Capone?

[/ QUOTE ]

Hmmm, two convicted felons who refused to pay taxes. I don't understand the connection.

a lot of corporate entities that should pay taxes but don't, for one political reason or another

[/ QUOTE ]

So, are you saying we should tax corporations more?

4. ### bobsurf1/2 ton status

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Thanks Goober, but admittedly, I cannot claim authorship. Being a "screw you, hooray for me" and "my money is my money" type of guy, I definitely agree with the message.

Have a good weekend all, I'm off to ride dirtbikes in the desert. Ocotillo wells to anyone that's interested.

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