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GoBigOrGoHome
04-18-2011, 06:59 PM
This thread is posted here for comedic purposes only and is in NO WAY an attempt to get political.

Suppose that every day, ten men go out for beer and 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.
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.

So, that's what they decided to do. The ten men drank in the bar every
day and seemed quite happy with the arrangement, until one day, the owner
threw them a curve ball. "Since you are all such good customers," he
said, "I'm going to reduce the cost of your daily beer by $20." Drinks
for the ten men would now cost just $80.

The group still wanted to pay their bill the way we pay our taxes. So the
first four men were unaffected. They would still drink for free. But
what about the other six men? 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. But if they subtracted that from everybody's share, then
the fifth man and 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 a higher percentage the poorer he was, to follow the principle of
the tax system they had been using, and he proceeded to work out the
amounts he suggested that each should now pay.

And so the fifth man, like the first four, now paid nothing (100% saving).
The sixth now paid $2 instead of $3 (33% saving).
The seventh now paid $5 instead of $7 (28% saving).
The eighth now paid $9 instead of $12 (25% saving).
The ninth now paid $14 instead of $18 (22% saving).
The tenth now paid $49 instead of $59 (16% saving).

Each of the six was better off than before. And the first four continued
to drink for free. But, once outside the bar, the men began to compare
their savings.

"I only got a dollar out of the $20 saving," declared the sixth man. He
pointed to the tenth man, "but he got $10!"

"Yeah, that's right," exclaimed the fifth man. "I only saved a dollar,
too. It's unfair that he got ten times more benefit than me!"

"That's true!" shouted the seventh man. "Why should he get $10 back, when
I got only $2? The wealthy get all the breaks!"

"Wait a minute," yelled the first four men in unison, "we didn't get
anything at all. This new tax system exploits the poor!"

The nine men surrounded the tenth and beat him up.

The next night the tenth man didn't show up for drinks, so the nine sat
down and had their beers without him. But when it came time to pay the
bill, they discovered something important – they didn't have enough money
between all of them for even half of the bill!

And that, boys and girls, journalists and government ministers, is how our
tax system works. The people who already pay the highest taxes will
naturally get the most benefit from a tax reduction. Tax them too much,
attack them for being wealthy, and 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

brauneyz
04-18-2011, 09:45 PM
I have no idea what your point is Biggie, but it sure looks like I drink for free. I get to keep my girlie $$$ for another day. :p

packa7x
04-18-2011, 11:46 PM
This post made me smile :)

Cris Collinsworth
04-19-2011, 12:08 AM
Ha. Beers for everybody on me. Brauneys gets the first one.

msclemons
04-19-2011, 02:14 AM
I love it GoBig. But you forgot one thing - the tenth guy could drink for free if he incorporated. Big multinationals generally find enough loopholes to avoid paying any taxes.

The ninth guy takes it in the shorts though.

packa7x
04-19-2011, 12:43 PM
Ha. Beers for everybody on me. Brauneys gets the first one.

If I act girly can I go second?

GoBigOrGoHome
04-19-2011, 01:28 PM
I love it GoBig. But you forgot one thing - the tenth guy could drink for free if he incorporated. Big multinationals generally find enough loopholes to avoid paying any taxes.

Like moving their international headquarters to Switzerland (http://www.cbsnews.com/video/watch/?id=7360932n&tag=contentMain;contentBody) and sending all their $$ overseas never to be touched by the IRS?

Andy Freeland
04-19-2011, 01:50 PM
This thread has trouble written all over it, but I guess I'll play along for now. The one major flaw in your analogy is that the U.S. doesn't have a friendly bartender who reduced our bill by 20%, it would be a lot more accurate to say they decided to start paying only 80% of the bill and put the rest on a credit card.

brauneyz
04-19-2011, 02:03 PM
This thread has trouble written all over it, but I guess I'll play along for now.

Nah, we all know how to play nice. If not, we'll toss the troublemakers to the curb. You can go back to bed now. :p

GoBigOrGoHome
04-19-2011, 02:11 PM
This thread has trouble written all over it, but I guess I'll play along for now. The one major flaw in your analogy is that the U.S. doesn't have a friendly bartender who reduced our bill by 20%, it would be a lot more accurate to say they decided to start paying only 80% of the bill and put the rest on a credit card.

A credit card where their interest rate would jump to 47% if they were three seconds late on their payment.