Truth about Taxes
10-11-2004, 05:02 PM
#1
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Re: upgrading my brakes
Okay here is an email I got today.
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Tax Cuts - A Simple Lesson In Economics
To put tax cuts in terms everyone can understand, let's suppose that everyday 10 men go out for dinner. The bill always comes to $100.00
If they paid their bill the way we pay our taxes it would go something like this:
The first 4 men (the poorest) would pay nothing.
The 5th would pay $1.00
The 6th would pay $3.00
The 7th would pay $7.00
The 8th would pay $12.00
The 9th would pay $18.00
The 10th man (the richest) would pay $59.00
So this is what they decided. The 10 men ate dinner in the restaurant everyday and seemed quite happy with the arrangement. Until one day, when the owner threw them a curve.
"Since you are all such good customer's" he said, "I'm going to reduce the cost of your daily meal by $20.00.
So now dinner for the ten only cost $80.00. The group still wanted to pay their bil the same they pay their taxes. So the first 4 men were unaffected, they still ate for free. But what about the other 6 men that paid? How could they make sure they their fair share?
The six men realized that $20.00 divided by 6 is $3.33. But, if they subtracted that from everybody, the the 5th and 6th man were being 'PAID' to eat their meal.
The restaurant owner suggested it would be fair to reduce each man's bill by roughly the same amount in comparision to how much they were now paying. And so the owner came up with this:
The 5th man like the first 4, paid nothing (100% savings)
The 6th man now paid $2.00 instead of $3.00 (33%)
The 7th man now paid $5.00 instead of $7.00 (28%)
The 8th man now paid $9.00 instead of $12.00 (25%)
The 9th man now paid $14.00 instead of $18.00 (22%)
The 10th man now paid $49.00 instead of $59.00 (16%)
Now each of the six were 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 $20.00" declared the 6th man. He pointed to the 10th man, "but he got $10.00. that's 10 times more than me."
"That's right," exclaimed the 7th man, "why should he get $10.00 and me only $2.00? The wealthy get all the breaks."
The first 4 men, now realizing they got nothing back, "The system exploits the poor!"
With that the 9 men surrounded the 10th and beat him up.
The next night the 10th man did not show up for dinner, so the 9 ate without him. But when the time came to pay, they realized they could not even cover half of the bill!
People who pay the higher taxes benefit most from a tax cut.
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So why do we care about tax cuts?? I dunno but I'm on my way to becoming a rich person!!
--------------------------------------------------------------------
Tax Cuts - A Simple Lesson In Economics
To put tax cuts in terms everyone can understand, let's suppose that everyday 10 men go out for dinner. The bill always comes to $100.00
If they paid their bill the way we pay our taxes it would go something like this:
The first 4 men (the poorest) would pay nothing.
The 5th would pay $1.00
The 6th would pay $3.00
The 7th would pay $7.00
The 8th would pay $12.00
The 9th would pay $18.00
The 10th man (the richest) would pay $59.00
So this is what they decided. The 10 men ate dinner in the restaurant everyday and seemed quite happy with the arrangement. Until one day, when the owner threw them a curve.
"Since you are all such good customer's" he said, "I'm going to reduce the cost of your daily meal by $20.00.
So now dinner for the ten only cost $80.00. The group still wanted to pay their bil the same they pay their taxes. So the first 4 men were unaffected, they still ate for free. But what about the other 6 men that paid? How could they make sure they their fair share?
The six men realized that $20.00 divided by 6 is $3.33. But, if they subtracted that from everybody, the the 5th and 6th man were being 'PAID' to eat their meal.
The restaurant owner suggested it would be fair to reduce each man's bill by roughly the same amount in comparision to how much they were now paying. And so the owner came up with this:
The 5th man like the first 4, paid nothing (100% savings)
The 6th man now paid $2.00 instead of $3.00 (33%)
The 7th man now paid $5.00 instead of $7.00 (28%)
The 8th man now paid $9.00 instead of $12.00 (25%)
The 9th man now paid $14.00 instead of $18.00 (22%)
The 10th man now paid $49.00 instead of $59.00 (16%)
Now each of the six were 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 $20.00" declared the 6th man. He pointed to the 10th man, "but he got $10.00. that's 10 times more than me."
"That's right," exclaimed the 7th man, "why should he get $10.00 and me only $2.00? The wealthy get all the breaks."
The first 4 men, now realizing they got nothing back, "The system exploits the poor!"
With that the 9 men surrounded the 10th and beat him up.
The next night the 10th man did not show up for dinner, so the 9 ate without him. But when the time came to pay, they realized they could not even cover half of the bill!
People who pay the higher taxes benefit most from a tax cut.
--------------------------------------------------------------------
So why do we care about tax cuts?? I dunno but I'm on my way to becoming a rich person!!
10-11-2004, 08:20 PM
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Re: 2004 ABQ BBQ - Who's Coming? (ABQ = Albuquerque New Mexi
I am still all for a national sales tax that elminates income tax.. even people who work under the table or get their money illegally have to buy things.. the more expensive thing you buy, the more you pay.
10-11-2004, 08:40 PM
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Re: heat shield rattle...
QUOTE (CyberShark)
Lower your taxable income..a good way to get ahead at tax return time.
How TF do you do that??? LOL
10-11-2004, 09:12 PM
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Re: FS: Quest HRS race suspension
or you could just get deployed overseas to the middle east and not even get taxes taken out because your in a tax free hostile fire zone laugh.gif laugh.gif
10-13-2004, 02:24 PM
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Subs, Amp, & Cd DECK For Sale
You lower your taxable income with deductions, it's no secret.
Don't yard sale crap, spread it out on the floor, take a picture of it and donate it to Goodwill. You'll get more out of it that way.
Contributions to Traditional IRAs or QRPs (qualified retirement plans) are also tax dedcutible since you will be paying taxes on the earning when you withdraw it.
Mortgage interest is also tax deductible. If you have equity in your home and are paying off credit cards or other debt, take out SOME (not all) of your equity and use it to pay them off. The interest you pay on a second mortgage is tax deductible as well.
Donations made to the donation plate at church are deductible as well, up to a certain percent of your gross annual income.
Cash donations made to charity, etc........
Local property taxes are decutible.
Don't get the bright idea that if you do all of this that you will get some massive refund, you won't. The more you make, the more you have to pay......so if you can afford to make reasonable contributions to yout IRA or charity, then you're being taxed out the ass anyway. To most of us deductions just lessen the blow. I haven't had a refund for 8 years now and kids aint worth the deduction. I should, however, be able to claim my worthless sister-in-law as a deduction instead of her a-hole husband.
Don't yard sale crap, spread it out on the floor, take a picture of it and donate it to Goodwill. You'll get more out of it that way.
Contributions to Traditional IRAs or QRPs (qualified retirement plans) are also tax dedcutible since you will be paying taxes on the earning when you withdraw it.
Mortgage interest is also tax deductible. If you have equity in your home and are paying off credit cards or other debt, take out SOME (not all) of your equity and use it to pay them off. The interest you pay on a second mortgage is tax deductible as well.
Donations made to the donation plate at church are deductible as well, up to a certain percent of your gross annual income.
Cash donations made to charity, etc........
Local property taxes are decutible.
Don't get the bright idea that if you do all of this that you will get some massive refund, you won't. The more you make, the more you have to pay......so if you can afford to make reasonable contributions to yout IRA or charity, then you're being taxed out the ass anyway. To most of us deductions just lessen the blow. I haven't had a refund for 8 years now and kids aint worth the deduction. I should, however, be able to claim my worthless sister-in-law as a deduction instead of her a-hole husband.