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This is one of my favorite stories that circulate via email on the internet. Its origin is uncertain according to an urban legend site: How Taxes Work
The exact numbers are debatable but the message at the end is clear. I believe one political party in the US is doing all it can to "beat up" corporations and successful people who pay taxes. If they are not careful, nobody will be left to pay the bills. For this reason I left the Democratic party many years ago and joined the Libertarian party. How Income & Taxes are Distributed Look at the example shown below (after the first table) -- very interesting. 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 people 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: So, that's what they decided to do. The ten people 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 people 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 people realized that a $20 divided by six is $3.33. But if they subtracted that from everybody's share, then the fifth person and the sixth person would each end up being 'PAID' to eat their meal.
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