Tax System Explained in Beer

[dilbert firestorm]

https://finance.townhall.com/columni...n-beer-n952039

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?

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.

[garhkal]

I always love reading 'taxes explained' examples like that.. Pity libtards who read it, can't understand the simple math of it.

[Chung Tran]

that's funny and true to a large extent.. one thing is left out though.

the 10th man (who controls the Government, either by position in, or control of, via donations) can opt out, but still print the money that doesn't come from his pocket.. the beers get paid for, and the Country balance sheet debits beer as an asset, and credits account payable.

[WTF]

Originally Posted by dilbert firestorm

https://finance.townhall.com/columni...n-beer-n952039

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

.

Oh no , another one of these stupid examples that only uses our progressive tax system and leaves out our regressive tax system.

Let's use an example of a car....and say instead of that 8% flat or regressive tax we pay on it we tax each of those ten 8% of their income .... so instead of everyone paying 3200 dollars on a 40k car purchase , they paid 8% of their income. Or you could not ever use a car.

So a man making a 1 million dollars a year paid 80k in taxes on that 40k car instead of 3200.

And the man making 40000 a year would still pay 3200 tax on a 40k car.


You see dilbert , when you do not understand the big picture of how we tax in this country ....it is very easy to be fooled by stupid beer examples that really only show how one part of our tax system works. I'm not sure whose fault it is many of you are so ignorant about our tax system but it seems the more ignorant, the more stupid beer examples one sees.

[WTF]

Originally Posted by garhkal

I always love reading 'taxes explained' examples like that.. Pity libtards who read it, can't understand the simple math of it.

Pity your dumbass that does not understand how taxes are really collected in this country....