Read this the other day and it makes sense and bears repeating.


Think about it the next time someone complains that the rich people get the lion's share of a tax cut.

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 got 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 reduction. 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.

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

Lets take the constant recurring income tax issues off the table once and for all by replacing our current production based tax penalty system with a consumption tax penalty by implementation of "The Fair Tax." This would eliminate the IRS terrorists and their controlling tax code and place the tax burden on those who benefit the most from the maximum consumption in this country. Continual revisions of the current tax code are superficial and only temporary until the next administration. This pending "Fair Tax" bill has been locked up in Congress review committee for over 11 years and would finally t***sform our tax system into a workable program while eventually reducing the deficit to a surplus simultaneously. This would create the largest ongoing economic boom the world has ever seen with no end in sight because finally surplus revenue would be continually increasing raising the tide of economic prosperity for everyone.

Lets take the constant recurring income tax issues off the table once and for all by replacing our current production based tax penalty system with a consumption tax penalty by implementation of "The Fair Tax." This would eliminate the IRS terrorists and their controlling tax code and place the tax burden on those who benefit the most from the maximum consumption in this country. Continual revisions of the current tax code are superficial and only temporary until the next administration. This pending "Fair Tax" bill has been locked up in Congress review committee for over 11 years and would finally t***sform our tax system into a workable program while eventually reducing the deficit to a surplus simultaneously. This would create the largest ongoing economic boom the world has ever seen with no end in sight because finally surplus revenue would be continually increasing raising the tide of economic prosperity for everyone.

Utter BS! A consumption tax (really just a sales tax) would be extremely regressive hurting the middle and poor classes and "UNFAIR" as hell because it punishes people for spending. Income tax is the only "Fair Tax" because it is the only tax based solely on ability to pay. How much would the "consumption tax" need to be to replace the income tax? 20%-30%?

Why are i***ts constantly looking for ways to punish the middle and poor classes while thinking the wealthy are being treated "Unfairly"?

Utter BS! A consumption tax (really just a sales tax) would be extremely regressive hurting the middle and poor classes and "UNFAIR" as hell because it punishes people for spending. Income tax is the only "Fair Tax" because it is the only tax based solely on ability to pay. How much would the "consumption tax" need to be to replace the income tax? 20%-30%?

Why are i***ts constantly looking for ways to punish the middle and poor classes while thinking the wealthy are being treated "Unfairly"?

My ignorance? Hahaha! See, now you start putting provisions aimed at healping the "poor" and pretty soon there will be a need for a bureaucracy the size or bigger than the IRS to enforce and over see all the special provisions. What percent is your "Fair Tax" going to have to be to make up for the loss of income tax revenue all the rich pay? 20%-30%, higher? Who is going to collect the "Fair Tax"? The sales tax (which is what a consumption tax really is) in Texas requires a huge bureaucracy (State Comptroller's office) just to collect, enforce and administer sales taxes and other taxes. Take the Texas motor vehicle registration fees (which are in essence a tax)--whether you have a Cadillac (rich) or clunker (poor) the registration fee is the same every year. That is not a fair "tax"

I predict the underground, black market, bartering economy, wh**ever, would explode to avoid the "Fair Tax".

A flat tax, after exemptions for basic cost living, of 10% would be more "Fair".