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The True Story of Taxes


Let's put tax cuts in terms everyone can understand. Suppose that every day, 10 men go out for lunch and the bill for all 10 comes to $100.

If they paid their bill the way we pay our taxes, using the progressive tax formula, the billing would go 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, the majority of the men voted democratically to do that.

The 10 men ate in the diner every day and seemed quite happy

with the arrangement, until one day the diner owner surprised them.

"Since you are all good customers," he said,

"I'm going to reduce the cost of your daily dinner by $20.

Lunch for 10 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 eat for free.

But what about the other six men, the paying customers?

How could they divide the $20 windfall so everyone would get his  fair share??

They realized that $20 divided by six is $3.33.

But if they subtracted that from everybody's bill,

 then the fifth man and the sixth man would each

end up being paid to eat. That didn't seem fair.

 So, the owner suggested reducing each man's bill using the US tax formula.

 Then he presented the amounts each should pay.

The fifth man, like the first four, now paid nothing (100% savings).

The sixth now paid $2 instead of $3 (savings 33%).

The seventh now pay $5 instead of $7 (savings 28%).

The eighth now paid $9 instead of $12 (savings 25%).

The ninth now paid $14 instead of $18 (savings 22%).

 The tenth now paid $49 instead of $59 (savings only 16%).

Each of the six was better off than before and the

first four continued to eat for free. But outside the

diner, the men compared their savings  without

any sense of thanks.

"I only got a dollar out of the $20," declared the sixth man.

 He pointed enviously to the tenth man,

"but richie got $10!" "That's right," exclaimed the fifth man.

"I only got a dollar back. It's unfair that the richest guy  got ten times more than I got!"

"Yeah!" 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 did not get anything at all. The US system exploits the poor!"

 Then the nine men surrounded the tenth and beat him up.

 The next day the tenth man didn't show up for lunch,

 so the nine ate without him. But when it came

time  to pay the bill, they discovered something important.

They didn't have enough money from 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 anymore.

 In fact, they might start eating in Canada  where the atmosphere is friendlier.




Improved tax system


Many had said that the current tax system is too hard to understand. And right they are. The US Tax code is in excess of 16,000 pages

You can buy a complete 29 voloum from the Govt for only $974!.

Link to the web page http://www.trygve.com/taxcode.html

Some have called for the FAIR TAX or FLAT Tax.

Both of these are unacceptable as there is too

 much papaer work involved.

The best plan is the Automatic Tax.

Link to: http://www.electronicflattax.com/

Under this system ALL electronic (Checks, ATM,

credit cards, transfers, ect) are automaticly taxed -

at a very low rate.

Posslbly even less than 1%. There would be NO

execptions.  All individuals, companies,

churches, schools, govt,  and non-profits

would pay the tax. But since the rate is

so low, it would not be a hardship on anyone.

This plan would replace ALL income, excise, or other current taxes.



This page last updated on 7 Nov 09