The Progressive Income Tax: A Tale of Three Brothers|5 Minut…

” The Progressive Income Tax” is one of those financial terms that gets bandied about, but few really understand what it suggests or how it works. This tale of three similar brothers with three various incomes (however one shared expenditure) helps discuss the tax system under which we live. Adjusted from an article by noted financier and financial expert, Kip Hagopian, and told by starlet Carolyn Hennesy of “General Hospital” and “True Blood” popularity, this animated story will alter the method you think about how you pay your taxes..

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Script:.

When upon a time, there were three siblings, triplets, called Tom, Dick, and Harry Class. They were raised in the exact same home, with the very same moms and dads, had the very same IQ, exact same skills and exact same opportunities. Each was married and had two children. They were all carpenters making $25 per hour.

While they were really similar in all these respects, they had various priorities.

For instance, Tom, chose to work 20 hours each week, while his sibling, Dick worked 40 hours and Harry 60.

It should likewise be noted that Harry’s wife worked full time as a workplace manager for an income of $50,000. Penis’s better half sold real estate part time 10 hours a week and made $25,000 per year. Tom’s other half did not work.

Tom and Dick spent all of their household income. Considering that they paid into Social Security they figured, they didn’t need to save for retirement. Harry and his better half, on the other hand, had, over several years, put away money monthly and invested it in bonds and stocks.

Here’s how it exercised: Tom made $25,000 a year, Dick and his other half made $75,000 and Harry and his better half, $150,000.

When a brand-new housing development opened in their neighborhood, the siblings decided to purchase equally-priced homes on the same personal street.

One day the siblings decided to pool their funds for the function of improving their street. Worried about crime and security, and desiring a more appealing setting for their homes, the 3 households chose to set up a security gate at the street’s entrance; repave the street’s surface area; and boost the lighting and landscaping. The work was done for an overall expense of $30,000.

Harry assumed they would divide the costs three ways, each brother paying $10,000. Tom and Dick objected. “Why should we pay the like you?” they stated. “You make far more money than we do.” Harry was puzzled. “What does that relate to anything?” he asked. “My family makes more money since my wife and I work long hours, and since we have actually saved some of the money we’ve made to make additional cash from investments. Why should we be penalized for that?”.

” Harry, you can work and save all you like” Tom countered. “But my other half and I want to enjoy ourselves now, not 25 years from now.”.

” Fine, Tom. Do what you want. It’s a totally free nation. Why should I have to pay for that?

” I can’t believe your being so … unbrotherly,” Tom argued. “You have a great deal of money and I don’t. I thought you ‘d be more generous.”.

At this moment, Dick, the peacemaker in the household, got in the conversation. “I’ve got an idea,” Dick stated. “Our combined earnings is $250,000, and $30,000 is 12 percent of that quantity. Why don’t we each pay that portion of our earnings? Under that formula, Tom would pay $3,000, I would pay $9,000, and Harry would pay $18,000.”.

” I have a better idea,” said Tom. “And one that’s fairer than what you’re proposing.”.

For the total script, visit https://www.prageru.com/videos/progressive-income-tax-tale-three-brothers.

source

When upon a time, there were 3 bros, triplets, called Tom, Dick, and Harry Class. Tom’s better half did not work.

Tom and Dick invested all of their household income. Tom and Dick objected. Under that formula, Tom would pay $3,000, I would pay $9,000, and Harry would pay $18,000.”.