How Taxes and Tax Cuts Work
Let's put them in perspective. Much has been made of “tax cuts only benefiting the rich” so let's put them in terms everyone can understand. Suppose that every week, ten friends go out for dinner. The bill for all ten comes to $100. If each were responsible for his/her share of the bill, that would be $10 each. Instead, they decided to divide the bill based upon their ability to pay, using the way we pay our federal income taxes as a guide, so this is how it went: The first four — the poorest — would pay nothing; the fifth would pay $1, the sixth would pay $3, the seventh $7, the eighth $12, the ninth $18, and the tenth person — the wealthiest — would pay $59. Seems more than fair, right? So that's what they decided to do. The ten folks ate dinner in the restaurant every week and seemed quite happy with the arrangement — until one week, the owner threw them a curve (in tax language, a tax cut). "Since you are all such good customers," she said, "I'm go...
