The Tax Plan Explained

[dbussone]

This simple little ditty should make even Pelosi, Schumer and colleagues/supporters/media understand why the "rich" receiving larger dollar tax reductions than others is not the result of the revised tax plan favoring the "rich".



Tax System Explained in Beer
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 ball. "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 men would 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? 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 a higher percentage the poorer he was, to follow the principle of the tax system they had been using, and he proceeded to work out the amounts he suggested that each should now pay.

And so the fifth man, like the first four, now paid nothing (100% saving).

The sixth now paid $2 instead of $3 ... (33% saving).

The seventh now paid $5 instead of $7... (28% saving).

The eighth now paid $9 instead of $12 ... (25% saving).

The ninth now paid $14 instead of $18 ... (22% saving).

The tenth now paid $49 instead of $59 ... (16% saving).

Each of the six was better off than before. And the first four continued to drink for free.

But, once outside the bar, the men began to compare their savings.

"I only got a dollar out of the $20 saving," 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 received ten times more benefit than me!"

"That's true!" shouted the seventh man. "Why should he get $10 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. This new tax system exploits the poor!"

The nine men surrounded the tenth man and beat him up.

The next night the tenth man didn't show up for drinks, so the nine sat down and had their 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 government officials, is how our tax system works. The people who already pay the highest taxes will naturally 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.

For those who understand, no explanation is needed.

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



Sent from my iPad using Tapatalk Pro

[Don Baldwin]

This simple little ditty should make even Pelosi, Schumer and colleagues/supporters/media understand why the "rich" receiving larger dollar tax reductions than others is not the result of the revised tax plan favoring the "rich".



Tax System Explained in Beer
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 ball. "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 men would 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? 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 a higher percentage the poorer he was, to follow the principle of the tax system they had been using, and he proceeded to work out the amounts he suggested that each should now pay.

And so the fifth man, like the first four, now paid nothing (100% saving).

The sixth now paid $2 instead of $3 ... (33% saving).

The seventh now paid $5 instead of $7... (28% saving).

The eighth now paid $9 instead of $12 ... (25% saving).

The ninth now paid $14 instead of $18 ... (22% saving).

The tenth now paid $49 instead of $59 ... (16% saving).

Each of the six was better off than before. And the first four continued to drink for free.

But, once outside the bar, the men began to compare their savings.

"I only got a dollar out of the $20 saving," 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 received ten times more benefit than me!"

"That's true!" shouted the seventh man. "Why should he get $10 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. This new tax system exploits the poor!"

The nine men surrounded the tenth man and beat him up.

The next night the tenth man didn't show up for drinks, so the nine sat down and had their 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 government officials, is how our tax system works. The people who already pay the highest taxes will naturally 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.

For those who understand, no explanation is needed.

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



Sent from my iPad using Tapatalk Pro

You MISSED the MOST important lesson...the government...the bartender...still has the same expenses...the "bartender" only lowered prices to keep the men coming in because times are tough. The bar has been operating at a loss for years, having to borrow 1/4 of it's expenses each year, and it will eventually close due to insurmountable debt.

[doughete]

I always want a president with an economics background, until Trump. Ridiculous question, if they weren't limited by congress who do think would drive the US economy into the ground faster (based on their campaign promises) Trump or Bernie?

[mellincf]

Ever since Reagan, the rich have gotten richer and the middle class poorer. The top 1% now control 40% of all the wealth in the United States. Contrary to rosy expectations, they will not be "bringing jobs" back to the USA, why should they? Corporations have been swollen with excess profits, and that didn't bring jobs home. Their factories are already established overseas, labor costs are much lower, and their customer base is there. China's GDP has been growing at 10% year over year, and 800 million people moved from poverty to middle class. China’s car market in 2016 closed with record-breaking sales of almost 23 million passenger vehicles versus 1.5 million US auto sales. The market, the workers, and the infrastructure are in Asia and likely to stay in Asia.

[mellincf]

This simple little ditty should make even Pelosi, Schumer and colleagues/supporters/media understand why the "rich" receiving larger dollar tax reductions than others is not the result of the revised tax plan favoring the "rich".



Tax System Explained in Beer
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 ball. "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 men would 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? 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 a higher percentage the poorer he was, to follow the principle of the tax system they had been using, and he proceeded to work out the amounts he suggested that each should now pay.

And so the fifth man, like the first four, now paid nothing (100% saving).

The sixth now paid $2 instead of $3 ... (33% saving).

The seventh now paid $5 instead of $7... (28% saving).

The eighth now paid $9 instead of $12 ... (25% saving).

The ninth now paid $14 instead of $18 ... (22% saving).

The tenth now paid $49 instead of $59 ... (16% saving).

Each of the six was better off than before. And the first four continued to drink for free.

But, once outside the bar, the men began to compare their savings.

"I only got a dollar out of the $20 saving," 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 received ten times more benefit than me!"

"That's true!" shouted the seventh man. "Why should he get $10 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. This new tax system exploits the poor!"

The nine men surrounded the tenth man and beat him up.

The next night the tenth man didn't show up for drinks, so the nine sat down and had their 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 government officials, is how our tax system works. The people who already pay the highest taxes will naturally 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.

For those who understand, no explanation is needed.

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



Sent from my iPad using Tapatalk Pro

When someone claims to be a "Professor of Economics" they put their university on the next line. Where is this guy a "professor" and what's his CV?

[dbussone]

When someone claims to be a "Professor of Economics" they put their university on the next line. Where is this guy a "professor" and what's his CV?



He’s easy to find, and a prolific author.

David R Kamerschen | University of Georgia (UGA) | ResearchGate (https://www.researchgate.net/profile/David_Kamerschen)



Sent from my iPad using Tapatalk Pro

[Dr Winston O Boogie jr]

Ever since Reagan, the rich have gotten richer and the middle class poorer. The top 1% now control 40% of all the wealth in the United States. Contrary to rosy expectations, they will not be "bringing jobs" back to the USA, why should they? Corporations have been swollen with excess profits, and that didn't bring jobs home. Their factories are already established overseas, labor costs are much lower, and their customer base is there. China's GDP has been growing at 10% year over year, and 800 million people moved from poverty to middle class. China’s car market in 2016 closed with record-breaking sales of almost 23 million passenger vehicles versus 1.5 million US auto sales. The market, the workers, and the infrastructure are in Asia and likely to stay in Asia.

Interesting because since Regan, we have had 16 years of a Democrat in the White House and 12 years with a Republican president.

[MorTech]

Dumobrats are too stupid to even begin to understand what you wrote. Explaining adult concepts to the retarded parasites is like teaching monkeys to play Mozart on a piano. You have to explain things to them as if they are 5 year olds...Which mentally, they are.

If little Johnny has 5 cookies and little Democrat psycho-parasite Nancy Pelosi shoves Johnny to the ground and steals all his cookies, we say that "Little Johnny contributed his fair share".

How do you think the criminal psychopath little Billy Klinton got elected?

[Abby10]

This simple little ditty should make even Pelosi, Schumer and colleagues/supporters/media understand why the "rich" receiving larger dollar tax reductions than others is not the result of the revised tax plan favoring the "rich".



Tax System Explained in Beer
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 ball. "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 men would 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? 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 a higher percentage the poorer he was, to follow the principle of the tax system they had been using, and he proceeded to work out the amounts he suggested that each should now pay.

And so the fifth man, like the first four, now paid nothing (100% saving).

The sixth now paid $2 instead of $3 ... (33% saving).

The seventh now paid $5 instead of $7... (28% saving).

The eighth now paid $9 instead of $12 ... (25% saving).

The ninth now paid $14 instead of $18 ... (22% saving).

The tenth now paid $49 instead of $59 ... (16% saving).

Each of the six was better off than before. And the first four continued to drink for free.

But, once outside the bar, the men began to compare their savings.

"I only got a dollar out of the $20 saving," 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 received ten times more benefit than me!"

"That's true!" shouted the seventh man. "Why should he get $10 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. This new tax system exploits the poor!"

The nine men surrounded the tenth man and beat him up.

The next night the tenth man didn't show up for drinks, so the nine sat down and had their 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 government officials, is how our tax system works. The people who already pay the highest taxes will naturally 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.

For those who understand, no explanation is needed.

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



Sent from my iPad using Tapatalk Pro

Great post! I like how the last line reads - will not versus can not - so telling, and certainly already proven on this thread.

[dirtbanker]

I always want a president with an economics background, until Trump. Ridiculous question, if they weren't limited by congress who do think would drive the US economy into the ground faster (based on their campaign promises) Trump or Bernie?
You are too fvcking stupid to see the obvious; Bernie's plan to send everyone to college forever would be a HUGE expense to this country...but you could have gone to college to try to obtain an economics degree, and if you wanted to change your mind and pursue a different degree, no problem - your not paying for it, Bernies government plan is!


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[dirtbanker]

Ever since Reagan, the rich have gotten richer and the middle class poorer. The top 1% now control 40% of all the wealth in the United States. Contrary to rosy expectations, they will not be "bringing jobs" back to the USA, why should they? Corporations have been swollen with excess profits, and that didn't bring jobs home. Their factories are already established overseas, labor costs are much lower, and their customer base is there. China's GDP has been growing at 10% year over year, and 800 million people moved from poverty to middle class. China’s car market in 2016 closed with record-breaking sales of almost 23 million passenger vehicles versus 1.5 million US auto sales. The market, the workers, and the infrastructure are in Asia and likely to stay in Asia.
How much of all the income tax collected, is paid by the top 1% that controls 40% of all the wealth" ?


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[Don Baldwin]

Dumobrats are too stupid to even begin to understand what you wrote. Explaining adult concepts to the retarded parasites is like teaching monkeys to play Mozart on a piano. You have to explain things to them as if they are 5 year olds...Which mentally, they are.

If little Johnny has 5 cookies and little Democrat psycho-parasite Nancy Pelosi shoves Johnny to the ground and steals all his cookies, we say that "Little Johnny contributed his fair share".

How do you think the criminal psychopath little Billy Klinton got elected?

Of course...you're talking about the Hispanics and blacks...and many women.

[Dr Winston O Boogie jr]

How much of all the income tax collected, is paid by the top 1% that controls 40% of all the wealth" ?


Sent from my SAMSUNG-SM-G890A using Tapatalk

Actually the wealthy pay more than just income taxes. A better question would be how much of the revenue that the government receives comes from the 1%.

But to answer the question, According to estimates by the Tax Policy Foundation, the top 1 percent of earners (incomes in excess of $615,000) are paying nearly half — 45.7 percent — of individual income taxes for tax year 2014. The top 20 percent, with incomes above $134,300, contribute nearly 84 percent of all federal income taxes.

When you consider that all corporate taxes come from the ultimate consumer and since the wealthy buy more goods and services, the percentage of revenues to the government is even higher fot he top 1%.

[dirtbanker]

Actually the wealthy pay more than just income taxes. A better question would be how much of the revenue that the government receives comes from the 1%.

But to answer the question,

When you consider that all corporate taxes come from the ultimate consumer and since the wealthy buy more goods and services, the percentage of revenues to the government is even higher fot he top 1%.Thats right; THE 1% that she is whining about, pays 46% of all the income tax collected...she was just being stupid, again!

Sent from my SAMSUNG-SM-G890A using Tapatalk

[Dr Winston O Boogie jr]

Dumobrats are too stupid to even begin to understand what you wrote. Explaining adult concepts to the retarded parasites is like teaching monkeys to play Mozart on a piano. You have to explain things to them as if they are 5 year olds...Which mentally, they are.

If little Johnny has 5 cookies and little Democrat psycho-parasite Nancy Pelosi shoves Johnny to the ground and steals all his cookies, we say that "Little Johnny contributed his fair share".

How do you think the criminal psychopath little Billy Klinton got elected?

I disagree with most democrat's policies but I don't think that name calling gets us anywhere.

[Don Baldwin]

Actually the wealthy pay more than just income taxes. A better question would be how much of the revenue that the government receives comes from the 1%.

But to answer the question,

When you consider that all corporate taxes come from the ultimate consumer and since the wealthy buy more goods and services, the percentage of revenues to the government is even higher fot he top 1%.

The 1% also control the government and therefore...us too.

I disagree with most democrat's policies but I don't think that name calling gets us anywhere.

Why not? We USED to do it all the time...and those who did...they called them the "greatest generation". Now...we're whiny pussies. AFRAID to "offend" anyone. It's "hurtful"...

[wjboyer1]

73248

[AJ32162]

73248

Wjboyer1, you seem a little paranoid, are you afraid this could happen to you?:1rotfl:

Throwing Granny off a Cliff - Mia Love/Paul Ryan - YouTube (https://www.youtube.com/watch?v=b9s-hoDlbL0)

[wjboyer1]

Wjboyer1, you seem a little paranoid, are you afraid this could happen to you?:1rotfl:

Throwing Granny off a Cliff - Mia Love/Paul Ryan - YouTube (https://www.youtube.com/watch?v=b9s-hoDlbL0)

not blind to what Republicans do, as you are.....

[dbussone]

not blind to what Republicans do, as you are.....



Maybe, but you sure swallow the swill the Dems feed you:

Ad: Obama Throws Grandma Off a Cliff - Fox Nation (http://nation.foxnews.com/president-obama/2012/03/20/ad-obama-throws-grandma-cliff)



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[wjboyer1]

Maybe, but you sure swallow the swill the Dems feed you:

Ad: Obama Throws Grandma Off a Cliff - Fox Nation (http://nation.foxnews.com/president-obama/2012/03/20/ad-obama-throws-grandma-cliff)



Sent from my iPad using Tapatalk Pro

When Fox News debuted it was crafted from scratch to be a partisan outlet for right-wing propaganda and a platform for advancing a conservative agenda. Its Internet community web site, Fox Nation, serves as the online gathering place for Fox viewers to absorb and spread the aggregated disinformation and conspiracy theories hatched by Fox News.

Fox Nation is an mis-information channel, and does not report actually factual news.....just your style

73251

[dbussone]

When Fox News debuted it was crafted from scratch to be a partisan outlet for right-wing propaganda and a platform for advancing a conservative agenda. Its Internet community web site, Fox Nation, serves as the online gathering place for Fox viewers to absorb and spread the aggregated disinformation and conspiracy theories hatched by Fox News.



Fox Nation is an mis-information channel, and does not report actually factual news.....just your style



73251



And you believe the video you quoted was not a partisan piece? Just your style. The piece you quoted was a Left piece. Have you ever been taught critical thinking?



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[dbussone]

And you believe the video you quoted was not a partisan piece? Just your style. The piece you quoted was a Left piece. Have you ever been taught critical thinking?


And the piece was not from “Fox News” it was from “Fox Nation”



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[dbussone]

Wjboyer1
There is no reasonable way to discuss something that has no basis in reality. Happy New Year!


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[Don Baldwin]

When Fox News debuted it was crafted from scratch to be a partisan outlet for right-wing propaganda and a platform for advancing a conservative agenda. Its Internet community web site, Fox Nation, serves as the online gathering place for Fox viewers to absorb and spread the aggregated disinformation and conspiracy theories hatched by Fox News.

Fox Nation is an mis-information channel, and does not report actually factual news.....just your style

73251

Same with CNN...you don't think you get "left" propaganda from them?

And you believe the video you quoted was not a partisan piece? Just your style. The piece you quoted was a Left piece. Have you ever been taught critical thinking?



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To learn something takes a minimum amount of intelligence...MOST liberals do not possess the minimum to understand "critical thinking".

When your group is made up almost entirely of blacks. hispanics, and women...how much CAN you expect from them?

Look at what white men have created...what did blacks. hispanics, and women create? At least the white women made the great men that created western civilization. All the minorities ever do is tear it down.