Taxes

[jackson]

This is pretty good

BUSH'S TAX CUT FAVORS THE RICH ! ???
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Let's put tax cuts in terms everyone can understand.

Suppose that every day, 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, 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 would pay $7.

The eighth would pay $12.

The ninth would pay $18.

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

So, that's what they decided to do.

The ten men drank in the bar 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 beer by $20."Drinks for the ten now cost just $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 drink for free. But what about the other six men - the paying customers? How could they divide the $20 windfall so that everyone would get his 'fair share?' They 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 drink his beer.

So, the bar 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 pay $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 of $59 (16% savings).




Each of the six was better off than before. And the first four continued to drink 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 man," 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 I!"




"That's true!!" shouted the seventh man. "Why should he get $10 back when I go t only two? 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 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 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 reduct ion. 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. Like Halliburton……………………..




David R. Kamerschen, Ph.D.

Professor of Economics

University of Georgia

For those who understand, no explanation is needed. For those who do not understand, no explanation is possible.

[Caprirs]

The hard numbers back up what you've posted:

http://www.taxfoundation.org/taxdata/show/250.html

Table 1 shows how the top 5% of earners are paying 57% of the taxes. The top 25% are paying over 85% of the taxes. Yet some people think (well, not really think) the higher earners should be taxed more and are dodging their fair share.

Most Democratic voters choose not to remember the luxury tax (http://en.wikinews.org/wiki/US_Congr...the_Luxury_Tax) which essentially forced unemployment of entire industries like boat builders and jewelers aka blue collar working class people. It had to be repealed in three years because the wealthy refused to buy things with the obscenely high tax added on. Thus, the projected tax revenue did not get collected and the income taxes of the businesses and their employess went away. Genius.

[cdlenterprises]

Just goes to show you that if the rich don't make money none of us do. The rich are rich for a reason. Take away or hinder the ability to make money and they will ultimately take the money away. That trend can be seen in the middle class too. Look at the exodus that people are making from the northeast to the south and the west. The tax structure in most of the northern states(I'm from CT so I can relate) is ridiculous. People (and companies) know that they are able to keep more of their earned money and establish the same or higher standard of living elsewhere. Tax breaks, no matter who they favor, are the best way to "motivate" Americans who in turn will "motivate" the economy.

[jackson]

Yeah most smaller companys ***** at the taxes they pay yet they dont realy realize that the rich cover most of the taxes and like i said if we tax them more then they will simply move over seas, then the blue collar Americans that ***** about the income tax they pay "well wont have anything to ***** about because they wont have jobs. That was my point in posting this so people may understand a little bit better and maybe keep some jobs Here!!!!!