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Monday, October 11, 2010

The tax cuts benefit only the rich .... oh really ?

This is the very best of Charles Adler that I have read to date. 

I was having lunch at a great restaurant with one of my favourite clients last week and the conversation turned to the government’s recent round of tax cuts. “I’m opposed to those tax cuts,” the retired university teacher declared, “because they benefit the rich. The rich get much more money back than ordinary taxpayers like you and I and that’s not fair.”

“But the rich pay more in the first place,” I argued, “so it stands to reason that they’d get more money back.” I could tell that my friend was unimpressed by this meager argument. Even university teachers are prisoners of a myth that the “rich” somehow get a free ride in Canada. Nothing could be further from the truth.

Let’s put tax cuts in terms everyone can understand. Suppose that every day 10 men go to PJ’s for dinner. The bill for all ten comes to $100. If it was paid the way we pay our taxes, 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. The tenth man (the richest) would pay $59..................

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