A tax analogy, who's really paying their fair share?

beenthere

New Member
Imagine the following:

Ten good friends go out for dinner at a restaurant every night. The combined bill for the ten totals $200. Since they all make differing amounts of money they decide that they divide the payment as follows:

The four first - the poorest of the lot - don't pay at all.
The fifth pays $2.
The sixth pays $6.
The seventh pays $14.
The eigth pays $24.
The ninth pays $36.
The tenth and the richest pays $118.

They were all pretty content with this way of splitting the bill and they went out to eat together every day. One day, however, the restaurant's owner decided he'd give them a discount.

"Since you're such good customers", he said, "I'll give you a discount of $40." The ten's dinner would then cost $160. The group of friends decided they still wanted to keep splitting the check in the same fashion as previously. Therefore, the four first - whom paid nothing - were not affected and could keep eating for free. But how would the remaining six - those who were paying - divide the cost amongst them? How were they to split the value of the discount so that everyone got their fair share? The six realized that $40 divided by six equals $6.66. However, if they subtracted that amount from each person's share - the fifth and the sixth persons would get paid to go out and eat (by paying a negative amount).

The restaurant owner suggested that it'd be fair to reduce each person's share roughly proportionally and he crunched the numbers to calculate the amount each person was to pay. He came to the conclusion that the fifth person too could eat free - just like the 1st through 4th did originally -, the sixth was to pay $4, the seventh $10, the eigth $18, the ninth $24 and the tenth $104 in contrast to his previous $118.

As a result, ALL SIX paid a lower price than before and the four who paid nothing originally kept paying nothing.

But one night after finishing their dinner, they all started comparing what they had saved. "I only saved $2 of the discount's total value of $40", said the sixth person. Then he turned and pointed to the tenth person who still paid the lion's share and said "But he saved $14!". "That's right", concurred the fifth person and added "I too only saved $2! It's unfair he saved seven times the amount I did". "That's right!", the seventh person yelled. "Why should he save $14 when I only saved $4? The rich always get the unfair advantage!". Then the four first - who never payed a penny - cried "Wait a minute! We didn't save anything at all from the discount! This system exploits and takes advantage of the poor!".

The first nine persons then jumped the tenth and beat him up. The following night, he didn't show up for dinner - causing the other nine to sit down and eat without him. When the check arrived they realized a little something. They were $104 short to pay for dinner.
Why Rick Santorum Should Be President
 

UncleBuck

Well-Known Member
i don't hate it. go on, ask me about it.

you'd be interested in knowing i most favored santorum despite his social views because he seemed to really want to do something for the blue collar guy. could have been a great pick. but repubs don't fall in love, they fall in line, and your duty was to nominate the guy that lost to the guy that lost to obama last time. so you did.

anyhoo, i'd love to answer any questions you may have about this analogy.
 

beenthere

New Member
i don't hate it. go on, ask me about it.

you'd be interested in knowing i most favored santorum despite his social views because he seemed to really want to do something for the blue collar guy. could have been a great pick. but repubs don't fall in love, they fall in line, and your duty was to nominate the guy that lost to the guy that lost to obama last time. so you did.

anyhoo, i'd love to answer any questions you may have about this analogy.
First and foremost, I'm not a republican, I'm a registered independent.
So what do you think of the tax analogy, do you feel we should penalize success by imposing more taxes?
 

UncleBuck

Well-Known Member
...do you feel we should penalize success by imposing more taxes?
i am not a fan of penalizing success. nor am i a fan of plutocracy.

and although i am not a fan of raising taxes, i do believe there does need to be major tax reform. the richest person in your analogy pays at a higher rate than all the rest. but the richest among us in real life (not your analogy) pay a lesser rate.

romney is not even in the top 1%, he is in the top 0.006% of earners. yet if we put him in you analogy, he would be paying at a lesser rate than the 5th poorest person there. i mean, the guys pays 13% in taxes on his 20 million. canna sylvan and me (when i'm working those desk jobs) pay closer 25% in taxes on our $30k.

so your analogy in not analogous, and to call it an analogy is an insult to analogies.

a better analogy would be this: 1000 people attend a catering event. 6 of them are rich beyond your wildest dreams, they are richer than more than the bottom 800 or so attendees combined. the other 994 people range from dirt poor to pretty fucking rich. to pay for the event, which includes unlimited opportunity for good food, the filthy rich are charged $13 dollars to enter while the rest are charged anywhere from $35 for the well off, $30 for the not so well off but still getting by, $15 for the next to broke, $5 for the poverty folks, and $0 for the few truly poor.

that's more analogous to how our current system works. we all put in for the success of the nation, some more than others, and at certain rates. the super rich pay about what the working poor do. the middle and upper class pay way more, and the few at the bottom pay nothing and even get a free ride.
 

InCognition

Active Member
And the fact is that even if the rich paid equal %'s, people would still complain that they need to pay more because it's not fair. I do agree that the current tax system is beyond fucked though.

Beyond that, there are actually people out there who think that taxing a million+ salary warrants a 50%-60% tax. It's easy to follow that mentality if you lack dignity, and are the majority of people whom do not make 1 million dollar plus salaries. These same complainers would cry murder in the same situation, if they made million dollar salaries though, because it comes with the territory of the ignorance required by one, to believe in such a theory.


By the way, Santorum is a complete wack job.
 

kelly4

Well-Known Member
a better analogy would be this: 1000 people attend a catering event. 6 of them are rich beyond your wildest dreams, they are richer than more than the bottom 800 or so attendees combined. the other 994 people range from dirt poor to pretty fucking rich. to pay for the event, which includes unlimited opportunity for good food, the filthy rich are charged $13 dollars to enter while the rest are charged anywhere from $35 for the well off, $30 for the not so well off but still getting by, $15 for the next to broke, $5 for the poverty folks, and $0 for the few truly poor.

.
Yeah, but the ultra rich in this scenario can still say "I don't think it's worth it" and leave without paying.

This scenario in the REAL WORLD:
The "event organizer" would come over and say, "Stay, leave, who gives a fuck.....You've already been charged for the event!"
 

beenthere

New Member
i am not a fan of penalizing success. nor am i a fan of plutocracy.

and although i am not a fan of raising taxes, i do believe there does need to be major tax reform. the richest person in your analogy pays at a higher rate than all the rest. but the richest among us in real life (not your analogy) pay a lesser rate.

romney is not even in the top 1%, he is in the top 0.006% of earners. yet if we put him in you analogy, he would be paying at a lesser rate than the 5th poorest person there. i mean, the guys pays 13% in taxes on his 20 million. canna sylvan and me (when i'm working those desk jobs) pay closer 25% in taxes on our $30k.

so your analogy in not analogous, and to call it an analogy is an insult to analogies.

a better analogy would be this: 1000 people attend a catering event. 6 of them are rich beyond your wildest dreams, they are richer than more than the bottom 800 or so attendees combined. the other 994 people range from dirt poor to pretty fucking rich. to pay for the event, which includes unlimited opportunity for good food, the filthy rich are charged $13 dollars to enter while the rest are charged anywhere from $35 for the well off, $30 for the not so well off but still getting by, $15 for the next to broke, $5 for the poverty folks, and $0 for the few truly poor.

that's more analogous to how our current system works. we all put in for the success of the nation, some more than others, and at certain rates. the super rich pay about what the working poor do. the middle and upper class pay way more, and the few at the bottom pay nothing and even get a free ride.
I'll tell you what Bucky, you claiming to pay 25% federal taxes on only 30k annual income tells me you have no clue of what you're talking about, it's an utterly ridiculous claim. Not only are you full of shit on this issue, after that comment, I doubt seriously you've ever paid federal income taxes in your life. I see you as nothing but a big mouth progressive hack.
 

UncleBuck

Well-Known Member
I'll tell you what Bucky, you claiming to pay 25% federal taxes on only 30k annual income tells me you have no clue of what you're talking about, it's an utterly ridiculous claim. Not only are you full of shit on this issue, after that comment, I doubt seriously you've ever paid federal income taxes in your life. I see you as nothing but a big mouth progressive hack.
i have the returns, i can prove it.

sorry that your "analogy" was anything but analogous and you have no resort other than to pretend to know more about me than i do.

[h=3]Year 2009 income brackets and tax rates[/h]
Marginal Tax Rate[SUP][3][/SUP]SingleMarried Filing Jointly or Qualified Widow(er)Married Filing SeparatelyHead of Household
10%$0 – $8,350$0 – $16,700$0 – $8,350$0 – $11,950
15%$8,351 – $33,950$16,701 – $67,900$8,351 – $33,950$11,951 – $45,500
25%$33,951 – $82,250$67,901 – $137,050$33,951 – $68,525$45,501 – $117,450
28%$82,251 – $171,550$137,051 – $208,850$68,526 – $104,425$117,451 – $190,200
33%$171,551 – $372,950$208,851 – $372,950$104,426 – $186,475$190,201 – $372,950
35%$372,951+$372,951+$186,476+$372,951+

 

sync0s

Well-Known Member
Imagine the following:

Ten good friends go out for dinner at a restaurant every night. The combined bill for the ten totals $200. Since they all make differing amounts of money they decide that they divide the payment as follows:

The four first - the poorest of the lot - don't pay at all.
The fifth pays $2.
The sixth pays $6.
The seventh pays $14.
The eigth pays $24.
The ninth pays $36.
The tenth and the richest pays $118.

They were all pretty content with this way of splitting the bill and they went out to eat together every day. One day, however, the restaurant's owner decided he'd give them a discount.

"Since you're such good customers", he said, "I'll give you a discount of $40." The ten's dinner would then cost $160. The group of friends decided they still wanted to keep splitting the check in the same fashion as previously. Therefore, the four first - whom paid nothing - were not affected and could keep eating for free. But how would the remaining six - those who were paying - divide the cost amongst them? How were they to split the value of the discount so that everyone got their fair share? The six realized that $40 divided by six equals $6.66. However, if they subtracted that amount from each person's share - the fifth and the sixth persons would get paid to go out and eat (by paying a negative amount).

The restaurant owner suggested that it'd be fair to reduce each person's share roughly proportionally and he crunched the numbers to calculate the amount each person was to pay. He came to the conclusion that the fifth person too could eat free - just like the 1st through 4th did originally -, the sixth was to pay $4, the seventh $10, the eigth $18, the ninth $24 and the tenth $104 in contrast to his previous $118.

As a result, ALL SIX paid a lower price than before and the four who paid nothing originally kept paying nothing.

But one night after finishing their dinner, they all started comparing what they had saved. "I only saved $2 of the discount's total value of $40", said the sixth person. Then he turned and pointed to the tenth person who still paid the lion's share and said "But he saved $14!". "That's right", concurred the fifth person and added "I too only saved $2! It's unfair he saved seven times the amount I did". "That's right!", the seventh person yelled. "Why should he save $14 when I only saved $4? The rich always get the unfair advantage!". Then the four first - who never payed a penny - cried "Wait a minute! We didn't save anything at all from the discount! This system exploits and takes advantage of the poor!".

The first nine persons then jumped the tenth and beat him up. The following night, he didn't show up for dinner - causing the other nine to sit down and eat without him. When the check arrived they realized a little something. They were $104 short to pay for dinner.
Why Rick Santorum Should Be President
Am I really the only person who noticed the one that really got screwed here? Where the fuck is the tip? They're all cheap bastards.
 

beenthere

New Member
i have the returns, i can prove it.

sorry that your "analogy" was anything but analogous and you have no resort other than to pretend to know more about me than i do.

Year 2009 income brackets and tax rates

Marginal Tax Rate[SUP][3][/SUP]SingleMarried Filing Jointly or Qualified Widow(er)Married Filing SeparatelyHead of Household
10%$0 – $8,350$0 – $16,700$0 – $8,350$0 – $11,950
15%$8,351 – $33,950$16,701 – $67,900$8,351 – $33,950$11,951 – $45,500
25%$33,951 – $82,250$67,901 – $137,050$33,951 – $68,525$45,501 – $117,450
28%$82,251 – $171,550$137,051 – $208,850$68,526 – $104,425$117,451 – $190,200
33%$171,551 – $372,950$208,851 – $372,950$104,426 – $186,475$190,201 – $372,950
35%$372,951+$372,951+$186,476+$372,951+
Just as I said, you are full of shit and have no frigging clue what you are talking about.
Your handy dandy chart is nothing but a progressive tax table! LMFAO

If your agi is $35k, your taxable income is about 24k so the effective tax rate on that income is around 9%, and that's filing single with no child tax credit or no deductions.
You're nothing but a big mouth progressive with no life experience. But what a big game you talk on the forums. You got busted lying about taxes you do not pay, so I'll assume you lie about everything else.
 

sync0s

Well-Known Member
I'll tell you what Bucky, you claiming to pay 25% federal taxes on only 30k annual income tells me you have no clue of what you're talking about, it's an utterly ridiculous claim. Not only are you full of shit on this issue, after that comment, I doubt seriously you've ever paid federal income taxes in your life. I see you as nothing but a big mouth progressive hack.
You're using ad hominem and it isn't help you win the argument. FYI..
 

beenthere

New Member
i am not a fan of penalizing success. nor am i a fan of plutocracy.

and although i am not a fan of raising taxes, i do believe there does need to be major tax reform. the richest person in your analogy pays at a higher rate than all the rest. but the richest among us in real life (not your analogy) pay a lesser rate.

romney is not even in the top 1%, he is in the top 0.006% of earners. yet if we put him in you analogy, he would be paying at a lesser rate than the 5th poorest person there. i mean, the guys pays 13% in taxes on his 20 million. canna sylvan and me (when i'm working those desk jobs) pay closer 25% in taxes on our $30k.

so your analogy in not analogous, and to call it an analogy is an insult to analogies.

a better analogy would be this: 1000 people attend a catering event. 6 of them are rich beyond your wildest dreams, they are richer than more than the bottom 800 or so attendees combined. the other 994 people range from dirt poor to pretty fucking rich. to pay for the event, which includes unlimited opportunity for good food, the filthy rich are charged $13 dollars to enter while the rest are charged anywhere from $35 for the well off, $30 for the not so well off but still getting by, $15 for the next to broke, $5 for the poverty folks, and $0 for the few truly poor.

that's more analogous to how our current system works. we all put in for the success of the nation, some more than others, and at certain rates. the super rich pay about what the working poor do. the middle and upper class pay way more, and the few at the bottom pay nothing and even get a free ride.
tax chart.gif

"The super rich pay about what the working poor do"

Hey Bucky, check out the tax chart, you're in the top 1% with that 25% in taxes you pay! LMAO
 

Gastanker

Well-Known Member
romney is not even in the top 1%, he is in the top 0.006% of earners. yet if we put him in you analogy, he would be paying at a lesser rate than the 5th poorest person there. i mean, the guys pays 13% in taxes on his 20 million. canna sylvan and me (when i'm working those desk jobs) pay closer 25% in taxes on our $30k.
Pretty sure those numbers are off but let's say they are correct. So you contribute $7,500 and he contributes $2,600,000. And you say you're contributing more than he is? I'm confused...

I wonder if he uses 34,600% more of the governments resources than you do. The richer you are the more of the governments resources you use, and the poorer you are the less of the governments resources you use? Hmmmm, does that sound accurate?
 

beenthere

New Member
You're using ad hominem and it isn't help you win the argument. FYI..
Sorry bro, that was far from an ad hominem attack, the issue was what percentage of federal income taxes Bucky claims to pay. Poor little bucky got caught lying, so I called him what he is, a liar.
 

UncleBuck

Well-Known Member
Pretty sure those numbers are off but let's say they are correct. So you contribute $7,500 and he contributes $2,600,000. And you say you're contributing more than he is? I'm confused...

I wonder if he uses 34,600% more of the governments resources than you do. The richer you are the more of the governments resources you use, and the poorer you are the less of the governments resources you use? Hmmmm, does that sound accurate?
i said he is paying at a lesser rate.

 
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