Bar Stool Economics ~ our tax system explained
Jan 10, 2020 16:20:56 #
Suppose that every day ten men go out for beer & the bill for all ten comes to $100.
If they paid their bill the way we pay our taxes, it would go something like this:
The first four men (the poorest) would pay nothing, $0.
The fifth would pay $1.
The sixth would pay $3.
The seventh would pay $7.
The eighth would pay $12.
The ninth would pay $18.
The tenth man (the richest) would pay $59.
That is what they decided to do.
The 10 men drank in the bar every day & seemed happy with the arrangement, until one day the bar owner threw them a curve. "Since you are all such good customers," he said, "I'm going to reduce the cost of your daily beer tab by $20."
Beer for the 10 now cost just $80.
The group still wanted to pay their bill the same way, so the first four men remained unaffected, they would still drink free.
But, what about the other six men - the paying customers?
How could they divide the $20 windfall so that everyone would get his 'fair share?'
They realized that $20 divided by six is $3.33.
However, by subtracting $3.33 from everyone's tab, then the fifth man & the sixth man would each end up being paid to drink his beer.
So, the bar owner suggested that it would be fair to reduce each man's bill by roughly the same amount, & he proceeded to figure the amounts each should pay.
The results:
The fifth man, like the first four, now paid $0, (100% savings).
The sixth paid $2 instead of $3 (33% savings).
The seventh paid $5 instead of $7 (28%savings).
The eighth paid $9 instead of $12 (25% savings).
The ninth paid $14 instead of $18 (22% savings).
The tenth now paid $50 instead of $59, still the largest share yet smallest, (16%) savings.
Each of the six was better off than before & the first four continued to drink FREE. Once outside the bar, the men began to compare their savings.
"I only got a dollar out of the $20," declared the sixth man. He pointed to the tenth man," but he got $9!"
"Yeah, that's right," exclaimed the fifth man. "I only saved a dollar, too. It's unfair that he got nine times more than me!"
"That's true!!" shouted the seventh man. "Why should he get $9 back when I got only $2, the
Wealthy bastards get all the breaks!"
"Wait a minute," yelled the first four men in unison. "We didn't get anything at all! The system exploits the poor!"
The 9 men surrounded the tenth & beat him up.
The next night the 10th man never showed up for drinks, so the nine sat down & had beers without him. However, when it came time to pay the bill, they discovered something very important. They did not have enough money between all of them for even half of the bill!
That, ladies & gentlemen, journalists & college professors, is how our tax system works.
The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, & they just may not show up anymore.
In fact, they might start drinking overseas where the atmosphere is somewhat friendlier.
For those who understand, no explanation is needed.
For those who do not understand, no explanation is possible.
If they paid their bill the way we pay our taxes, it would go something like this:
The first four men (the poorest) would pay nothing, $0.
The fifth would pay $1.
The sixth would pay $3.
The seventh would pay $7.
The eighth would pay $12.
The ninth would pay $18.
The tenth man (the richest) would pay $59.
That is what they decided to do.
The 10 men drank in the bar every day & seemed happy with the arrangement, until one day the bar owner threw them a curve. "Since you are all such good customers," he said, "I'm going to reduce the cost of your daily beer tab by $20."
Beer for the 10 now cost just $80.
The group still wanted to pay their bill the same way, so the first four men remained unaffected, they would still drink free.
But, what about the other six men - the paying customers?
How could they divide the $20 windfall so that everyone would get his 'fair share?'
They realized that $20 divided by six is $3.33.
However, by subtracting $3.33 from everyone's tab, then the fifth man & the sixth man would each end up being paid to drink his beer.
So, the bar owner suggested that it would be fair to reduce each man's bill by roughly the same amount, & he proceeded to figure the amounts each should pay.
The results:
The fifth man, like the first four, now paid $0, (100% savings).
The sixth paid $2 instead of $3 (33% savings).
The seventh paid $5 instead of $7 (28%savings).
The eighth paid $9 instead of $12 (25% savings).
The ninth paid $14 instead of $18 (22% savings).
The tenth now paid $50 instead of $59, still the largest share yet smallest, (16%) savings.
Each of the six was better off than before & the first four continued to drink FREE. Once outside the bar, the men began to compare their savings.
"I only got a dollar out of the $20," declared the sixth man. He pointed to the tenth man," but he got $9!"
"Yeah, that's right," exclaimed the fifth man. "I only saved a dollar, too. It's unfair that he got nine times more than me!"
"That's true!!" shouted the seventh man. "Why should he get $9 back when I got only $2, the
Wealthy bastards get all the breaks!"
"Wait a minute," yelled the first four men in unison. "We didn't get anything at all! The system exploits the poor!"
The 9 men surrounded the tenth & beat him up.
The next night the 10th man never showed up for drinks, so the nine sat down & had beers without him. However, when it came time to pay the bill, they discovered something very important. They did not have enough money between all of them for even half of the bill!
That, ladies & gentlemen, journalists & college professors, is how our tax system works.
The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, & they just may not show up anymore.
In fact, they might start drinking overseas where the atmosphere is somewhat friendlier.
For those who understand, no explanation is needed.
For those who do not understand, no explanation is possible.
Jan 10, 2020 16:50:06 #
Jan 10, 2020 16:51:41 #
Steelhead Mickey wrote:
MickeySuppose that every day ten men go out for beer &am... (show quote)
that is awfully close to political talk
but it's still good
Jan 10, 2020 17:09:08 #
Jan 10, 2020 19:12:32 #
Jan 10, 2020 19:20:04 #
Jan 10, 2020 19:22:30 #
Sure easy for you to say, your just 400 miles away. Probably be warm by the time I got there.
Jan 10, 2020 19:28:40 #
Steelhead Mickey wrote:
Suppose that every day ten men go out for beer &am... (show quote)
Love beer analogies...
Make it so that everything is very understandable...
Jan 11, 2020 00:00:44 #
I think I would like to have been someone nearby, just paying for my own beer and listening to these people espousing their individual versions of right and wrong. I would be wondering if they ever actually listen to what they are saying.
Jan 11, 2020 00:22:03 #
Well, I think the tenth man that went over seas should still have to pay his share. You can't just take your ball and go home. In this case beer. Somebody is Gunna have for to pay for the beer.this is not equality.
Jan 11, 2020 15:07:52 #
For those who think life is unfair, remember:
Socialism is the same as communism, but the killing hasn’t started...yet.
Socialism is the same as communism, but the killing hasn’t started...yet.
Jan 11, 2020 19:56:19 #
Jan 11, 2020 20:48:01 #
Jan 11, 2020 20:57:55 #
Jan 11, 2020 21:05:53 #
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