What happens when the businesses and rich people decide to stop opening their pockets to people looking for handouts?
Democrats will raise taxes on the middle class.
And with that, I give you...
"The Tax Day Parable"
Brad
The Tax Day Parable
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 the same percent, each according to the amount of the $100 tab they had previously been paying.
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 off my bill!" declared the sixth man who then pointed to the tenth. "But he got seven dollars!"
"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? Why should the wealthy get all the breaks?!"
"Wait a minute," yelled the first four men in unison, "We didn't get anything at all. When do we get something out of it?!"
The nine men surrounded the tenth and beat him. His injuries left him unable to work. He lost his profitable business and had to declare bankruptcy, selling all he owned to cover his medical treatment.
The next night he didn't show up for dinner, so the nine sat down and ate without him. Then it came time to pay the bill. Each reached in his walled and pulled out the accustomed amount - $2, $5, $9, and $12. But the bill was still $80 as before. They suddenly realized they were FIFTY-TWO DOLLARS short of paying the bill! They begged, pleading that the bill should be less since there were only nine of them now.
The restauranteur had no mercy. In order for him to serve his customers he had made long-term commitments to his suppliers, promising to buy a certain amount of products per month. He had also taken out large loans in order to purchase bulk products that allowed him to reduce expenses and provide the lower prices. Even though one patron was no longer present his manpower needs did not diminish. The remaining customers still demanded the same level of service. In short, his costs had remained the same despite one less person at the table. He immediately obtained a court order for services rendered, seizing all the men's possessions and confiscating their belongings. They were left with only the clothes on their backs and the knowledge that they had been their own undoing.
And that, boys and girls, journalists and college instructors, is how the tax system works. The people who pay the highest taxes will naturally get the most benefit from a tax reduction. It is simple mathematics. Just realize that they are also carrying the largest financial burden - a burden which allows the rest of us the luxury of a greatly reduced tax bill. Destroy their wealth through litigation, legislation, or regulation, and they just may not show up at the table anymore.
Then who do you think gets to pay the check?
