The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: How tax cuts "work"||Date: 10/23/2004 2:09 AM|
|Author: acm4tax||Number: 73854 of 124284|
If you have any friends or relatives that don't understand how tax cuts
"work" they might benefit from this explanation.
Tax Cuts Explained
Let's put tax cuts in terms that everyone can understand. Suppose that
every day, ten men go out for dinner. The bill for all ten comes to
If they paid their bill the way we pay our taxes, it would go something
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 pa