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Lacolaw
04-14-2004, 01:11 PM
This makes it real simple for anyone to understand......except for the liberal democrats....
This is how the Cookie Crumbles. Please read
> > carefully, especially in light of
> > the tax-increase plans of some wannabe
> > leaders... increases that will impact "selected
> > citizens," i.e., "you?" This should help those
> > of you who are on the fence re: choosing your
> > November candidate. (p.s. it's O.K. to
> > "think").
> >
> > Let's put tax cuts in terms everyone can
> > understand. Suppose that
> > every day, ten men/women 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:
> >
> > a.. The first four (the poorest) would pay
> > nothing.
> > b.. The fifth would pay $1.
> > c.. The sixth would pay $3.
> > d.. The seventh would pay $7.
> > e.. The eighth would pay $12.
> > f.. The ninth would pay $18.
> > g.. The tenth would pay $59.
> >
> > So, that's what they decided to do.
> >
> > The ten 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 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 6 paying customers 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:
> >
> > a.. The fifth man, like the first four, now
> > paid nothing (100% savings).
> > b.. The sixth man now paid $2 instead of $3
> > (33% savings).
> > c.. The seventh man now paid $5 instead of $7
> > (28% savings).
> > d.. The eighth man now paid $9 instead of $12
> > (25% savings).
> > e.. The ninth man now paid $14 instead of $18
> > (22% savings).
> > f.. The tenth man 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 very important... They
> > didn't have enough money, AMONG ALL OF THEM, to
> > cover 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. Then say bye-bye to your
> > jobs, your quality of life...etc, ETC.! (I
> > know, the truth hurts!).
> >
> > Note: There are lots of good restaurants in
> > Europe and the Caribbean.
> >
> > David R. Kamershen, Ph.D
> > Distinguished Professor of Economics
> > 536 Brooks Hall
> > University of Georgia
> >
> >
>
>

totenhosen
04-14-2004, 01:17 PM
that is kind of why I liked the idea behind Steve Forbes flat tax rate for everyone. I never got to into the numbers he was proposing but it sure would make for a good debate about overhauling our current system.

mirvin
04-14-2004, 01:18 PM
Thaks Lacolaw. That's good info. Unfortunately, the people who really need to read and understand this will probably get lost by the third paragraph:D
mirvin

vodkarocks
04-14-2004, 01:19 PM
Amen brother I just mailed out a big check today

AdrenelineOD
04-14-2004, 01:37 PM
Originally posted by mirvin
Thaks Lacolaw. That's good info. Unfortunately, the people who really need to read and understand this will probably get lost by the third paragraph:D
mirvin I made it half why:D

HM
04-14-2004, 01:42 PM
I formed a Nevada S corp last year, and I paid $0 in income taxes even though there were 2 commas in my gross income. Why do you think 60% of corporations paid 0$ in taxes last year? The only reason 40% still did is because they have bad accountants or are LLC's which have a minimum tax.
That is the plan for Cali, btw - the rich are staying but taking their money away - forcing the Dems to tax the middle class and poor - which they don't have enough money to pay the taxes to begin with - like the example shows above.
The added twist would be that the 10th man got together with 9 other men in the same situation, went to a different restaraunt and each paid $20, so they paid a total of $200. over doubling the normal revenue for 10 people and is better as it was revenue the restaraunt never had - Kind of like......Nevada? :D
Arni understands this, but he make take the blame if he doesn't go medevil on the liberals asses in Hackremento.

vodkarocks
04-14-2004, 01:49 PM
HolyMoly-please expand on how you paid 0 income tax- I need help

HM
04-14-2004, 02:33 PM
Originally posted by vodkarocks
HolyMoly-please expand on how you paid 0 income tax- I need help
I bought a 4 year old S Corp in Nevada - cost ~$10K to set up. Nevada have very liberal laws for S Corps - everything is a write off. Everything is paid for with pre-tax dollars. They tax what is left over - in my case - nothing;) . Also, bought and sold properties last year without 1031'ing the money into new property and no capital gains tax - how? S Corps in Nevada can comingle - buying and selling realestate is part of my business - not a real estate agent mind you. My primary income comes from my pyramid scam in marketing phone, internet, and utilities.:cool: which is 1099 to my corporation. Accountants did their thing with their interpretation of the tax code and bam.....$0 taxes. Even have insurance on liability $ in case of audit. Most I will pay is $5K on any given year.
If you have not read "Rich Dad, Poor Dad" I reccommend that you do asap. Incorporation is the way.

CrazyHippy
04-14-2004, 02:41 PM
Rich dad, poor dad.... great book
BJH