No not a Socialist.. EEEK...A LIBERAL
like myself. We will be called a threat to national securtiy
and out of the "mainstream"
-----Original Message-----
From: "Dubin, Elisabeth" <[EMAIL PROTECTED]>
Sent: Mar 8, 2004 10:41 AM
To: "William H. Magill" <[EMAIL PROTECTED]>,
University City List <[EMAIL PROTECTED]>
Subject: RE: [UC] Interesting: Taxes in perspective ...
When I read this little story, all I thought was, "Why did the owner of the restaurant
cut the price of the meal by $20? The guys eating there were totally happy to be
paying the $100. He could have used the $20 to upgrade his operation for the
betterment of himself and his customers. Now, if he ever needs the $20, there's no
way he'll get away with asking for it again because his customers will freak out."
Anyway, does this mean I'm some sort of socialist?!? Oh, god.
:]
ELISABETH DUBIN hillierARCHITECTURE
T 215 636 9999 | F 215 636 9989
One South Penn Square | Philadelphia | PA | 19107-3502
www . hillier . com
-----Original Message-----
From: [EMAIL PROTECTED]
[mailto:[EMAIL PROTECTED] Behalf Of William H. Magill
Sent: Saturday, March 06, 2004 3:35 PM
To: University City List
Subject: [UC] Interesting: Taxes in perspective ...
Begin forwarded message:
> Sometimes Politicians can exclaim; "It's just a tax cut for the
> rich!", and
> it is just accepted to be fact. But what does that really mean? Just
> in case
> you are not completely clear on this issue, we hope the following will
> help.
>
> Tax Cuts - A Simple Lesson In Economics
>
> This is how the cookie crumbles. Please read it carefully.
>
> 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.
> The tenth man (the richest) would pay $59.
>
> So, 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.
>
> "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. 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 each 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 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 paid $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
> eat 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 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. 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 dinner, so the nine sat
> down and ate 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 at the table anymore.
>
> There are lots of good restaurants in Europe and the Caribbean.
>
> David R. Kamerschen, Ph.D.
> Distinguished Professor of Economics
> 536 Brooks Hall
> University of Georgia
T.T.F.N.
William H. Magill
[EMAIL PROTECTED]
[EMAIL PROTECTED]
[EMAIL PROTECTED]
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