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Great story. Heard it before but had forgotten about it.
Bottom line is that the top few percent of tax payers pay most of the
income taxes but democrats want it all. Bush should win this
upcoming election by a wide margin but in four years, God help us all
because I don't see much of anything stopping Hillary considering the
huge percentage of women who claim they will vote for her and it's my
opinion she pushed for Kerry so Bush would win and she can run against a
non-sitting republican in 2008. The Clintons still maintain a death
grip on the D.N.C.
Thanks,
Bob
At 08:16 AM 3/6/2004 -0800, you wrote:
Speaking of low taxes, I don't
believe that the author noted at the bottom wrote this, but it is an
interesting analogy.
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
----- Original Message -----
From: delta88343@xxxxxxx
To: realtraders@xxxxxxxxxxxxxxx
Sent: Saturday, March 06, 2004 5:36 AM
Subject: Re: [RT] sp500/nasdaq top
In a message dated 3/5/04 12:08:51 PM Eastern Standard Time, mr.ira@xxxxxxxxxxxxx writes:
The government still claims that there is no inflation. Gas prices are $2.50 per Gal. here. Almost everything that is purchased is transported by truck. That cost will also be on the rise.
Housing costs continue to rise. Just down the road in Palo Alto the average home cost is $985,000. Health care costs and other insurance costs are skyrocketing as is the commodity index. How much longer can the government ignore what is happening?
Low interest rates have not created new jobs here, but India and other foreign countries are having a boon. We are shipping our jobs overseas where the service and manufacturing costs are far less. I have to admit, so is the quality of service provided by the overseas support.
Just some thoughts. Ira.\
This will continue to happen because it has little effect on the "Haves." Their petrol bill going from $50 a tank to $70 a tank on their SUV is barely worth discussing re: the household finances. They work for companies that pay their health insurance, or at least the bulk of it, and the large house they own has doubled in value the past 5 years. Life is good!
However, for the poor "have nots", they will continue to suffer regarding the above. Their meager earnings continue to get eaten away by the massive inflationary spiral going on. There is no one truly representing them in the media because they are mostly affiliated with one party. If rolls were reversed, and a democratic president was in office with the same things going on, you know darn well the Republicans would be holding congressional hearings, having investigations left and right regarding everything that is going on in the energy markets, Bush and Cheney's connections to Haliburton and the massive energy manipulation play that is going on etc.
I'm not trying to be political here, but thats the reality. There is absolutely no direction, no vision, no goal, no leadership within the democratic party. No one is raising any stink about what is going on, you hear nothing about it in the media and it literally borders on the criminal.
I am not politically affiliated one way or the other and I love low taxes. The above is simply my perceptions.
----- Original Message -----
From: EarlA
To: realtraders@xxxxxxxxxxxxxxx
Sent: Friday, March 05, 2004 7:42 AM
Subject: Re: [RT] sp500/nasdaq top
Fascinating market action ... SPX has rallied to 1162.99 (within my target range) while the price of the June 1150 puts I hold (and had orders for more) has also rallied. This suggests that the market is putting in a blow-off. Had to short emini since it looks like they won't fill my put order.
I assume that this rally is all about the perceived notion that the Fed won't raise rates so the market can party longer. Not a thought to the fact that continued employment problems will lead to reduced consumption and other (economic and political) fall-out from reduced consumer confidence. Foreign currencies are rallying hard which means even higher energy prices are in the cards.
Earl
----- Original Message -----
From: EarlA
To: realtraders@xxxxxxxxxxxxxxx
Sent: Friday, March 05, 2004 6:11 AM
Subject: Re: [RT] sp500/nasdaq top
SPX is very close to long standing target range of 1060-1073 which includes: 50% retracement to ATH, 200% expansion of Oct02-Mar03 swing, and Dec01-Mar02 triple top.
I closed out long emini position just ahead of Thursday's close leaving in place a SPX put established on Wednesday. I also have orders working to add to put position on any rally from monthly Employment Lie. During the past couple of weeks I've closed out all trading positions in stocks and now hold significant cash position. I still like energy stocks and hold core positions to which I will add during any correction in equities.
There should be good support in the 1015+- area which includes the 38% retracement to the Mar03 low and the Jun-Jul03 highs. If this area holds, then another run to higher highs (1250+-) could be in the cards. On a fundamental basis, the market is richly priced and risks are strongly to the downside should the public lose its taste for speculation.
Earl
----- Original Message -----
From: profitok
To: astrofin@xxxxxxxxxxxxxxx ; realtraders@xxxxxxxxxxxxxxx
Cc: Yacov Twena ; vincent ; U. Stuart-Auslander@xxxx Net (E-mail) ; Slawek (E-mail) ; Ronald McEwan ; Ron Miller (E-mail) ; panda2222@xxxxxxxxxxxxx ; ntt-list@xxxxxxxxxxxxxxx ; Ned Markson (E-mail) ; Mike Burk ; Kate (E-mail) ; Jseaton357@xxxxxxx ; Gocycles@xxxxxxx ; Elizabeth (E-mail) ; doroty.h ; Dom Perrino ; Dan C (E-mail) ; Cyclesman (E-mail)
Sent: Thursday, March 04, 2004 9:43 PM
Subject: [RT] sp500/nasdaq top
Most likely 3/5/04 should be a top for a while
get out of longs and if you have long term gains consider writing calls
most likely next is 1050 on sp
if I am wrong, the max upside is only 10-15 sp points
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