Taxes and Medical Care
Besides our inefficient, overburdened and illogical payment system for Medical Care in the United States, here is a description of our tax system. It also is extremely illogical and overbearing with few Americans actually understanding the process.
According to the web site truth or fiction:http://www.truthorfiction.com/rumors/t/taxcuts.htm ,this particular example of how our current tax system works cannot be attributed to any known author. But even without knowing the author, the example is very accurate to many Americans way of thinking.
Sometimes politicians and journalists 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, I hope the following will help. Please read it carefully. Let's put tax cuts in terms everyone can understand.
Suppose that every day, ten men go out for dinner 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 men (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 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." Dinner 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 men were unaffected. They would still eat for free. But what about the other six men - the paying customers? How could they divide the $20 windfall so that everyone would get his 'fair share?'
They 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 two? 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 anymore. In fact, they might start eating overseas where the atmosphere is somewhat friendlier.
I would guarantee that if every American were given their entire earnings every payday and then required to write out a check to the government on a weekly, monthly or quarterly basis, our tax system would be overhauled in a hurry.
Just as in Medical Care, we have taken the personal responsibility out of the process and Americans have become complacent to what is really happening.
According to the web site truth or fiction:http://www.truthorfiction.com/rumors/t/taxcuts.htm ,this particular example of how our current tax system works cannot be attributed to any known author. But even without knowing the author, the example is very accurate to many Americans way of thinking.
Sometimes politicians and journalists 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, I hope the following will help. Please read it carefully. Let's put tax cuts in terms everyone can understand.
Suppose that every day, ten men go out for dinner 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 men (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 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." Dinner 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 men were unaffected. They would still eat for free. But what about the other six men - the paying customers? How could they divide the $20 windfall so that everyone would get his 'fair share?'
They 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 two? 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 anymore. In fact, they might start eating overseas where the atmosphere is somewhat friendlier.
I would guarantee that if every American were given their entire earnings every payday and then required to write out a check to the government on a weekly, monthly or quarterly basis, our tax system would be overhauled in a hurry.
Just as in Medical Care, we have taken the personal responsibility out of the process and Americans have become complacent to what is really happening.
posted by Anonymous at 6:05 AM
4 Comments:
Woefully incomplete and misleading model, HB. The reality of the tax cuts is that services have been cut, fees have increased, unfunded federal madates have increased, state and local taxes have been increased to meet those mandates, and we've all become responsible for financing the largest debt in the history of this country.
When the costs of the tax cuts are calculated and compared against the "gains", the bottom 80% of all taxpayers (those making less than about $77,000 per year) show an actual net loss in income. Those in the highest tax brackets making over $1 million per year, however, reap a financial gain that's more than the median annual U.S. income.
The only thing that I agree with is your statement about actually writing the check(or handing over the cash). Same thing with benefits. The piece is way too simplistic.
I suppose we will see an article tomorrow saying that the estate tax is 100% wrong because it is double taxation. One of the biggest fallacies ever pulled on the American taxpayer. Most of them anyway.
bluegill,
You make many assumptions in your reply.
Tax cuts taken purely on their own are very much like the example given. You are relating them to many other independent variables that each can be altered independently.
Your compilation of all these variables and trying to make the case that they are directly related is inaccurate and misleading.
The reality of tax cuts does not mean services have to be cut. If tax money was used for its intended purposes and if our politicians would eliminate "pork", there would not be any cuts in services, unfunded mandates or increases in state and local taxes.
Your second paragraph is true only when you assume there has to be a fixed budget at the same level as the present and that we continue to use tax dollars for nonessential projects.
Ask your patients who are on Medicaid what they think about the tax cuts!
They are still being 'taxed' in other ways. I know of a patient who can only get one can of Boost for her tube feeds a DAY! And she is totally unable to swallow. OUR SYSTEM DOES NOT WORK! WHY do we not take care of our poor? WHY does our country continue to let W and his buddies continue to hurt the poor and allow the rich to continue to prosper? If that is a Christian (As W professes to be) then I don't know what one is anymore!
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