Bar stool economics

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. "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 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 - 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. 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 roughly the same amount, and he proceeded to work out the amounts each should pay! And so...
•The fifth man, like the first four, now paid nothing (100% savings).
•The sixth now paid $2 instead of $3 (33%savings).
•The seventh now paid $5 instead of $7 (28%savings).
•The eighth now paid $9 instead of $12 (25% savings).
•The ninth now paid $14 instead of $18 (22% savings).
•The tenth now paid $49 instead of $59 (16% savings).

Each of the six was better off than before. And the first four continued to drink for free. But once outside the restaurant, 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 $10!"

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

"That's true!" shouted the seventh man. "Why should he get $10 back when I got only two? The wealthy 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 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 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 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, and they just may not show up anymore. In fact, they might start drinking overseas where the atmosphere is somewhat friendlier

Wow

Certainly makes you think dosn't it ...............

I think I may be turning into a Republican

Ooooh!

jstaff wrote:I think I may be turning into a Republican

Oh, please don't!

Caryll wrote:Ooooh!

jstaff wrote:I think I may be turning into a Republican

Oh, please don't!

I think we need a fiscally responsible government and that sadly means Republicans. Having our countries credit rating downgraded really hurt and the joke pretty much sums up the US tax code.

Caryll wrote:Ooooh!

jstaff wrote:I think I may be turning into a Republican

Oh, please don't!

Guess I'm a bad guy... that's how it works here. Our congress wants to make it even worse. Always fun discussions with my occupy wall street cousin... Basically, if I have something, I must have abused others to get it so it should be taken from me and given to the guy who doesn't work, works less, studied less or wasn't thinking about income when they were younger. I have no problem helping but I pay tax coming and going and at a much higher rate.

bbimson wrote:... Basically, if I have something, I must have abused others to get it so it should be taken from me and given to the guy who doesn't work, works less, studied less or wasn't thinking about income when they were younger.

Anyone who works hard for the money he gets deserves every penny!

However, those who earn high figures should be prepared to pay a little more tax than those who earn low figures. I don't mean wasters or the lazy, but people who don't have a chance to earn big money for whatever reason (less educated/intelligent, less outgoing, less priveleged etc).

Unfortunately the way it works here is that laziness is rewarded. I'd support a flat tax. Make more- pay more, but equality for all.

bbimson wrote:Unfortunately the way it works here is that laziness is rewarded.

Same here. You see all the lazy so-and-sos outside the job centre waiting for their weekly handout & no intention of ever working. Criminal.

Caryll wrote:

bbimson wrote:Unfortunately the way it works here is that laziness is rewarded.

Same here. You see all the lazy so-and-sos outside the job centre waiting for their weekly handout & no intention of ever working. Criminal.

My fav is the pan handlers on their iPads. WTH?

bbimson wrote:

Caryll wrote:

bbimson wrote:Unfortunately the way it works here is that laziness is rewarded.

Same here. You see all the lazy so-and-sos outside the job centre waiting for their weekly handout & no intention of ever working. Criminal.

My fav is the pan handlers on their iPads. WTH?

Yes, and all the designer gear & the latest iphones!

Caryll wrote:

bbimson wrote:

Caryll wrote:

bbimson wrote:Unfortunately the way it works here is that laziness is rewarded.

Same here. You see all the lazy so-and-sos outside the job centre waiting for their weekly handout & no intention of ever working. Criminal.

My fav is the pan handlers on their iPads. WTH?

Yes, and all the designer gear & the latest iphones!

Really doesn't help their cause I think...lol

Well said!

Way i see it is the people with the highest paid jobs have earned them.

You don't go into the dole office and say i want a job thats 100k a year. You have to work up to it. Anyone from ANY background can work their way up (take alan sugar) people are just getting too dependant and in the mid of everyone should be equal and have equal monies. point is, you get what you earn.

A flat tax would work for me as well. I hate paying a tax on my paycheck and than again if I invest the money and make a profit.