[Fropki] How Taxes Work...

You may also like:
Elemental Balance (Game)

How Taxes Work . . .

 

This is a VERY simple way to understand the tax laws. Read on — it does make you think!!

 

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, and 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 (in tax language a tax cut).

 

"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 $80.00.

 

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 who 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, a little late what was very important. They were FIFTY-TWO DOLLARS short of paying the bill! Imagine that!

 

And that, boys and girls, journalists and college instructors, is how the 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.

 

Where would that leave the rest? Unfortunately, most taxing authorities anywhere cannot seem to grasp this rather straightforward logic!

Click here for Incredible Videos Collection
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Want More Interesting Mails in your Inbox?
Click here to Join Fropki Mailing List
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Today's Most Visited Topics on the Site:

• Nina Agdal Sizzles in Tiny Aerie Swimwear (Pics)
• Barbara Palvin shows her Lingerie for V day (Pics)
• Veena Malik Sexy at City Never Sleeps Event (Pics)
• Trisha sizzles in red dress (Pics)
• Victoria Azarenka - Tantrums (Video)
• Kaun Banega Bewakoof (Funny)
• If only I could still be with you (Poem)
• Run Ninja Run (Game)

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

__._,_.___

Members who contribute stuff to the group are requested to report any ABUSE or SPAM by other members of the Group. Any member who is found guilty of any such violations will be BANNED from the Group immediately and will be Reported to Yahoo! for further action. Members may report the issue by Forwarding us the mail at abuse@fropki.com and make sure that you copy and paste the Full Header of the mail along with the reported mail.

To change settings online go to:    http://groups.yahoo.com/group/Fropki/join
(Yahoo! ID required)

To unsubscribe from this group, send an email to:
Fropki-unsubscribe@yahoogroups.com

Your email settings: Individual Email|Traditional
Change settings via the Web (Yahoo! ID required)
Change settings via email: Switch delivery to Daily Digest | Switch to Fully Featured
Visit Your Group | Yahoo! Groups Terms of Use | Unsubscribe

__,_._,___