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Excellent. One only needs to look at Great
Britain in the 60's. Anyone who was earning a large income was
fleeing the country.
Good luck and good trading,
Ray Raffurty
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----- Original Message -----
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From:
Ira Tunik
To: <A title=realtraders@xxxxxxxxxxxxxxx
href="mailto:realtraders@xxxxxxxxxxxxxxx";>realtraders
Sent: Wednesday, May 15, 2002 10:08
AM
Subject: [RT] taxes off topic but
interesting.
An interesting interpretation of the tax system in
action.Subject: A preponderance of
thought.........................about an honest story with a new
presentationAbout 2 minutes worth of reading but perhaps something to
share withyourfriends and
family.................................I was having lunch with one of
my favorite clients last week and theconversation turned to the
government's recent round of tax cuts. "I'mopposed to those tax cuts," the
retired college instructor declared,"because they benefit the rich. The
rich get much more money back thanordinary taxpayers like you and I and
that's not fair.""But the rich pay more in the first place," I argued,
"so it stands toreason that they'd get more money back." I could tell that
my friend wasunimpressed by this meager argument. Even college
instructors are aprisonerof the myth that the "rich" somehow get a
free ride. Nothing could befurther from the truth.Let's put tax
cuts in terms everyone can understand. Suppose thateveryday10
men go to dinner. The bill for all ten comes to $100. If it was
paidtheway we pay our taxes, the first four men would pay nothing; the
fifthwouldpay $1; the sixth would pay $3; the seventh $7; the eighth
$12; theninth$18. The tenth man (the richest) would pay
$59.The 10 men ate dinner in the restaurant every day and seemed quite
happywith the arrangement until the owner threw them a curve. Since
you areallsuch good customers, he said, I'm going to reduce the cost
of your dailymeal by $20. Now dinner for the 10 only costs
$80.The first four are unaffected. They still eat for free. Can you
figureouthow to divvy up the $20 savings among the remaining six so
that everyonegets his fair share? The men realize that $20 divided by
6 is $3.33, butifthey subtract that from everybody's share, then the
fifth man and thesixthman would end up being paid to eat their
meal.The restaurant owner suggested that it would be fair to reduce
eachman'sbill by roughly the same amount and he proceeded to work out
the amountseach should pay.And so the fifth man paid nothing,
the sixth pitched in $2, the seventhpaid$5, the eighth paid $9, the
ninth paid $12, leaving the tenth man with abill of $52 instead of
$59. Outside the restaurant, the men began tocomparetheir savings. "I
only got a dollar out the $20," declared the sixth manpointing to the
tenth, "and he got $7!""Yeah, that's right," exclaimed the fifth man.
I only saved a dollar,too.It's unfair that he got seven times more
than me!"That's true," shouted the seventh man. "Why should he get $7
back whenIgot only $2? The wealthy get all the breaks.""Wait a
minute," yelled the first four men in unison. "We didn't getanything at
all. The system exploits the poor."The nine men surrounded the tenth
and beat him up. The next night hedidn'tshow up for dinner, so the
nine sat down and ate without him. But whenitcame time to pay the
bill, they discovered something important. Theywere$52
short!And that, boys and girls and college instructors, is how the tax
systemworks. The people who pay the highest taxes get the most benefit
from ataxreduction. Tax them too much, attack them for being wealthy,
and theyjustmay not show up at the table anymore. There are lots of
good restaurantsinSwitzerland and the Caribbean.To
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