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Short Story about Taxes

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

  1. bobsurf

    bobsurf 1/2 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. newyorkin

    newyorkin 1 ton status

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    </font><blockquote><font class="small">In reply to:</font><hr />
    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. Goober

    Goober 1/2 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




    </font><blockquote><font class="small">In reply to:</font><hr />
    Like Leona Helmsley and Al Capone?

    [/ QUOTE ]

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


    </font><blockquote><font class="small">In reply to:</font><hr />
    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. bobsurf

    bobsurf 1/2 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.
     
  5. newyorkin

    newyorkin 1 ton status

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    The connection is that they were both wealthy, and they refused to sit at the table and pay. That was what they were convicted of, not worse crimes they may have been guilty of. It was attempted humorous connotation more than serious, though.

    I mean companies that get tax breaks for whatever reason, but manage to use a non-profit status to claim exemption, etc. I don't know the details, but wasn't reverend Jackson running some show like that? A non-profit company that didn't pay taxes but somehow filled the pockets of it's volunteers?
     

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