Senate GOP Tax Plan Targets Tax Aid to Best-off 10 Percent
I think its very inaccurate to say the tax cuts are targeted at the rich. Since the rich pay the most taxes, untargeted tax cuts will save the rich a larger amount of dollars then the non-rich.
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"Suppose that each day 10 men go to a restaurant for dinner. The bill for all 10 comes to $100. If the bill was paid based on the relative wealth of the men, the way we pay income taxes, it would go like this.
The first four men would pay nothing; the fifth would pay $1; the sixth would pay $3; the seventh, $7; the eighth, $12; the ninth, $18; and the 10th, the richest man, would pay $59.
The 10 men continued to eat dinner and were quite satisfied with the arrangement until one day the restaurant owner threw them a curve.
He told them since they were such good customers, he was reducing their total bill to $80.
The first four men are unaffected because they pay nothing, but a debate arose over how to divvy up the $20 savings.
They could divide the $20 evenly between the remaining six, giving each one $3.33. But that would mean the fifth and sixth man would be paid to eat, because they each already paid less then $3 for their meal.
The restaurant owner suggested that they reduce each man’s bill by an amount proportionate to what he paid. Under that plan, the fifth man would pay nothing (just like the first four), and the sixth man would pay $2 instead of $3. The seventh would pay $5 instead of $7. The eighth would pay $9 instead of $12 and the ninth would pay $12 instead of $18. the 10th man would wind up with a bill of $52 instead of $59.
Outside the restaurant, the men began to compare their savings.
“I only got a dollar out of a $20- dollar reduction,” complained the sixth man, pointing to the 10th, “and he got $7.”
“Yeah,” exclaimed the fifth man. “I only saved a dollar, too. It’s not fair that he got seven times more than we did.”
“That’s true,” shouted the seventh man. “Why should he get $7 when I only got $2?”
“Wait a minute,” the first four men yelled in unison. “We didn’t get anything out of this. This price reduction exploits the poor!”
The argument became more heated and the nine men surrounded the 10th and beat him up.
The next night, he didn’t show up for dinner at all, so the other nine sat down for dinner without him. When they got the bill, they discovered something very significant. They were short $52."
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Should the Rich Pay All the Taxes?
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