[Seerseraxlils]

This is about the easiest way to explain our tax system and the results. Why people don't understand this is beyond me.



Bar Stool Economics

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.

David R. Kamerschen, Ph.D.
Professor of Economics, University of Georgia

For those who understand, no explanation is needed.

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

[Cucoulkrory]

makes sense to me, always has. if u tax people too much, they find ways to stop paying. same as if u charge too much for a product, u wind up not selling as many or any.. if u charge less , then u sell more, make more profit. is why i never understood inflation.. if everyone lowered their prices, then the ones who charge exhorbitant prices would LOSE money because they wouldn't sell anything or as much..and the little guy who sells the same product for less, sells more and as such everyone benefits. more sales tax on products being sold because more of them ARE sold.. and on up the line.. folks have more money in their pocket, so they spend it.. which boosts the economy and manufactures benefit because they have to make more products to sell, etc.. very simple.

so why haven't our politicians in washington figured this out yet?? maybe we do need hillary in the white house, IF she'd run the country like she runs her household.. anyone who can make millions just giving speeches, can't be all bad.. laffin.

[Binuilienzync]

When the average middle class citizen adds up his taxes..

(Income, (City, State & Federal) Sales tax, Property tax, Gas and utility taxes)

It is more than half of what they earn - something like 54-60%.

Democrats will raise this tax level.