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Author: galeno Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 757763  
Subject: The Bush Tax Cut Date: 3/30/2001 11:22 PM
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Every night, 10 men met at a restaurant for dinner. At the end of the meal, the bill would arrive. They owed $100 for the food that they shared.

Every night they lined up in the same order at the cash register. The first four men paid nothing at all. The fifth, grumbling about the unfairness of the situation, paid $1. The sixth man, feeling very generous, paid $3. The next three men paid $6, $12 and $18, respectively.

The last man was required to pay the remaining balance, $60. He realized that he was forced to pay for not only his own meal but most of the unpaid balance left by the first seven men.

The 10 men were quite settled into their routine when the restaurant threw them into chaos by announcing that it was cutting its prices.

Now dinner for the 10 men would only cost $80. This clearly would not affect the first four men. They still ate for free. The fifth and sixth men both claimed their piece of the $20 right away. The fifth decided to forgo his $1 contribution so now five men ate for free. The sixth pitched in $2, instead of $3, for a 33% cut. The seventh man paid $5 instead of $7, the eighth paid $9 instead of $12, and the ninth man paid $14 instead of $18. That left the last man with a bill of $50 instead of $60.

Outside of the restaurant, the men began to compare their savings, and angry outbursts began to erupt.

The sixth man yelled, "I only got $1 out of the $20, and he got $10," pointing at the last man.

The fifth man joined in. "Yeah! I only got $1 too. It is unfair that he got ten times more than me."

The seventh man cried, "Why should he get $10 back when I only got $2?"

The first four men followed the lead of the others: "We didn't get ANY of the $20. Where is our share?"

The nine men formed an outraged mob, surrounding the 10th man.

The nine angry men carried the 10th man up to the top of a hill and lynched him.

The next night, the nine remaining men met at the restaurant for dinner.

But when the bill came, there was not enough money to pay for it.
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Author: fleg9bo Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 35145 of 757763
Subject: Re: The Bush Tax Cut Date: 3/31/2001 2:48 AM
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Every night, 10 men met at a restaurant for dinner. At the end of the meal, the bill would arrive. They owed $100 for the food that they shared.

Clearly brilliant minds work alike. This was an amazing post because about nine months ago the San Jose (California) Mercury News published a letter I sent them with a nearly identical story. Except nobody got lynched and the payments were a little different. After the meal was paid for, it was discovered that the group had been overcharged. I concluded by saying that if the waiter were a Republican he would have given the refund to the tenth man who had paid almost all of the bill. If the waiter were a Democrat, he would have split half the refund among the men who paid nothing and spent the rest on a mismatched set of dishes for the restaurant.


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Author: doubtit Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 35185 of 757763
Subject: Re: The Bush Tax Cut Date: 3/31/2001 4:36 PM
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VA residents:

Mr. X took in cash flow of $400,000 from his rental property. Income and Self Employment Taxes = $0

Mr. Y took in a net of $400,000 from his service business. Income & Self Employment Taxes = $172,441.



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Author: 3spa Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 35190 of 757763
Subject: Re: The Bush Tax Cut Date: 3/31/2001 5:42 PM
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The nine angry men carried the 10th man up to the top of a hill and lynched him.

The next night, the nine remaining men met at the restaurant for dinner.

But when the bill came, there was not enough money to pay for it.


That was silly, you'd think they'd have taken his atm card and code before stringing him up.

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Author: lpuzzle One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 35192 of 757763
Subject: Re: The Bush Tax Cut Date: 3/31/2001 6:43 PM
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Actually, this analogy only works if the 10th man is married - if single, he would get a miniscule cut, paying maybe $58 instead of $60.

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Author: markr33 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 35213 of 757763
Subject: Re: The Bush Tax Cut Date: 4/1/2001 1:27 AM
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This one makes it into the top-10 of all time !!

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Author: vickifool Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 35215 of 757763
Subject: Re: The Bush Tax Cut Date: 4/1/2001 5:32 AM
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VA residents:

Mr. X took in cash flow of $400,000 from his rental property. Income and Self Employment Taxes = $0

Mr. Y took in a net of $400,000 from his service business. Income & Self Employment Taxes = $172,441.


time to re-read "Rich Dad, Poor Dad?"

Vickifool

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Author: telegraph Big funky green star, 20000 posts Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 35218 of 757763
Subject: Re: The Bush Tax Cut Date: 4/1/2001 9:37 AM
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"VA residents:

Mr. X took in cash flow of $400,000 from his rental property. Income and Self Employment Taxes = $0

Mr. Y took in a net of $400,000 from his service business. Income & Self Employment Taxes = $172,441.


A lot of details is missing. Mr X had 'cash flow' of $400K....nothing said about income.....maybe accumulating 'net worth', maybe not....likely paying off huge debt, and taking gobs of depreciation. When he sells, then he pays the tax bills. How much leverage does he have, and how much risk? (if his tenants leave, or rental market rates go way down, or businesses go elsewhere, or there isn't enough power to keep industry going in his town?)


Mr Y had a 'net' of $400K, and we assume that is taken from profit. He is paying taxes now . He is not necessarily accumulating a massive future tax obligation.

Rich DAd, Poor Dad is very poor recommendation for sound financial planning. Then again, the author seemed to , after he and his wife were out of college for years, to be 'bankrupt' for the second time, and living in an old car, on the streets, for months and monhts, with barely enough money to buy food (and some of that mooched from friends), to finally have discovered 'financial success'....and that was selling advice on how to 'get rich'.....he got rich on selling 'how to get rich books'.....not on his business ventures, which ALL failed before that. Seems he really didn't learn all that much from his 'rich dad' neighbor. ONly then did he start investing in real estate with the PROFITS from his book and seminar selling ventures.

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Author: fleg9bo Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 35231 of 757763
Subject: Re: The Bush Tax Cut Date: 4/1/2001 12:57 PM
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Mr. X took in cash flow of $400,000 from his rental property. Income and Self Employment Taxes = $0

Mr. Y took in a net of $400,000 from his service business. Income & Self Employment Taxes = $172,441.


How much did it cost Mr. X to put a new roof on his rental property? How much less than $400K will he collect next year when a tenant or two move out and it takes a while to replace them? Does he still come out ahead?




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Author: justpatrick Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 35284 of 757763
Subject: Re: The Bush Tax Cut Date: 4/2/2001 12:19 PM
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Actually, this analogy only works if the 10th man is married - if single, he would get a miniscule cut, paying maybe $58 instead of $60.

The 10th man is making so much money that whether he is married or not does not make much of a difference. Although, if you would like to change the story, I'm more than willing to give it a shot.

Four people go to dinner. A married couple and two of their friends who have decided to continue dating for a few more years before taking the plunge. Having thought ahead, they went to a restaurant where they could all use a coupon for their food. This way, they could all share equally.

The 4 separate checks arrive, the married couple pulls out their coupons, put them together and slap in the old credit card. Their two friends, not being married and not realizing that what is hers is his and his is hers...each pays for their own.

The waiter picks up the bills, but has to return the one to the married couple. It seems that they are only able to use one coupon per bill. When asked to split the bill, he has to tell them that he can split it, but because they are married they can still only use the one coupon.

To solve this problem, the couple gets divorced and then lives happily ever after.



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Author: washu Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 35291 of 757763
Subject: Re: The Bush Tax Cut Date: 4/2/2001 1:40 PM
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LOL -- Here're the tax press release from 10/2000.

http://www.house.gov/jec/press/2000/10-16-0.htm

<< They owed $100 for the food that they shared. .... The first four men paid nothing at all. The fifth, grumbling about the unfairness of the situation, paid $1. The sixth man, feeling very generous, paid $3. The next three men paid $6, $12 and $18, respectively. >>

Lessee... According to the table:

* The first five men make less than 25.5K apiece. They actualy paid $.50 total.

* The tenth man makes more than 83K. He didn't pay $18. He paid sixty-five dollars.


<< But when the bill came, there was not enough money to pay for it. >>

Of course, there was money! Who do you think got his estate taxed after he was lynched? (:


Washu! ^O^

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Author: nalts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 35566 of 757763
Subject: Re: The Bush Tax Cut Date: 4/6/2001 12:36 PM
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Bravo!

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Author: maylaptop Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 35839 of 757763
Subject: Re: The Bush Tax Cut Date: 4/11/2001 1:01 PM
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Finally. An example even the left wingers might be able to understand.

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