Tax cuts explained?

[kerryg]

It seems that I need 2 or 3 kids by next April. Anyone got spares?
Or know a good plumber?

In fact I do......are teenagers OK?

[Lou Girardin]

In fact I do......are teenagers OK?

Only if they're comatose.

[Oscar]

oks..

For someone earning 36K with three kids, they pay lots more and get less in the pocket than someone earning 34K if they've got three kids.

People say 'oh this tax cut means if you earn over 100K you'll have an extra $2400 (but you might pay 33 cents in the dollar earnt to tax), but if you earn 10K you'll only get $240 and (you pay 25 c per dollar so less in tax too) oh so it is advantaging the rich ..."

what.. so people are complaining they want is if I earnt 10K I'd be entitled to an extra $2400 per year if tax cuts went through? Would I still be entitled to that $2400 if I earnt nothing?

O_o

Anyways I've just been told that nats are wanting to increase national debt by two billion doing this...

What has the extra tax money on petrol been going to. that 5c a litre was for 5 billion towards auckland roads, but it has gone up another 10 cents in tax because it is a proportion of the petrol cost.. so.. uh.. Where has the other 10 billion gone?

The National Debt will not be increased, in fact it's been falling.

Dr. Cullen has a bad habit of underestimating the surplus, and this time he found some more just before the election...surprised?

All this crap about the rich getting a bigger tax break falls over on the premise that really poor people don't actually pay any tax...

[thehollowmen]

The National Debt will not be increased, in fact it's been falling.

Dr. Cullen has a bad habit of underestimating the surplus, and this time he found some more just before the election...surprised?

All this crap about the rich getting a bigger tax break falls over on the premise that really poor people don't actually pay any tax...

I wouldn't know if the people on benifits pay tax or not because I'll never be allowed one without taking a few years off first with a low income job.

Do house wives / husbands and students pay tax? they might not have an income.. I'm just asking it to be even and proportional for poor, middle class and rich. Imagine if the tables swung the other way and I asked them to pay the same tax as me? the benifits wouldn't even cover it.

we have to look at these figures as percentages of income, not "oh but if he earns a million dollars he'll end up with an extra four hundred in his pocket and this is unfair because I only end up with 8 dollars in my pocket because I earn the average salary"

[Hooks]

Take your time and read carefully ... this is the best I've seen yet !!



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 nineth $18
The tenth man (the wealthiest) 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, with the poorest paying little to nothing and the wealthiest, the most. 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 (the "wealthy" one) "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!"

Sound familiar?

"Wait a minute," yelled the first four men in unison. "We didn't get anything at all. The system exploits the poor!"

Sound familiar?

So 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

[Sniper]

Thanks hooks, I think I have seen t before but very good

[Storm]

Very very true. Thanks for that Hooks

[oldrider]

Good one. Have seen it before. A lot of people read it but they never "see" it.

[MSTRS:Me]

Suppose that every day, ten people 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 (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 (the richest) would pay $59.

So, that's what they decided to do.

The ten 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 were unaffected. They would still drink for free. But what about the other six - the paying customers? How could they divide the $20 windfall so that everyone would get their "fair share"?

They realised that $20 divided by six is $3.33. But if they subtracted that from everyone's share, then the fifth and the sixth would each end up being paid to drink their beer. So, the bar owner suggested that it would be fair to reduce each drinker's bill by roughly the same amount, and he proceeded to work out the amounts each should pay. And so:

The fifth person, 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 drinkers began to compare their savings.

"I only got a dollar out of the $20," declared the sixth. She pointed to the tenth man, "but he got $10!" "Yes, that's right," exclaimed the fifth. "I only saved a dollar too. It's unfair that he got ten times more than I did" "That's true!!" shouted the seventh. "Why should he get $10 back when I got only two? The wealthy get all the breaks" "Wait a minute," yelled the first four in unison. "We didn't get anything at all. The system exploits the poor"

The nine drinkers 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, ladies and gentlemen, 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.

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

[Murray]

Brilliant!!!! Of course the first 4 could always apply for a hardship grant!!

[MSTRS:Me]

Brilliant!!!! Of course the first 4 could always apply for a hardship grant!!

I can see that you are one of those in the second category...where do you think the hardship grant money comes from?

[Murray]

Actually No, I'm probably the poor bastard who got beat up and are sarcastic with it!!!!

[The Stranger:Me]

Screw the economics, I want to meet the tenth drinker for a beer.

[The Pastor]

i'd be the poor guy who misssed out on the beer, but doubled up on the beating.

[yungatart]

Well, what I want to know is how I get to have free beer and a 16% saving. I guess I'd have to become a poitician for that lark, huh?
What is the use of giving me all that info...but not the nitty gritty?