Tax Cuts for the "Rich" - Home Brew Forums

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11-30-2012, 03:16 AM   #1
ShepFL

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I learned percentages before 8th grade. It's not hard to figure out, but our voting majority seems to have missed class that day. I got this email today and thought I would share it.

THE TAX SYSTEM EXPLAINED IN BEER

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.
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11-30-2012, 03:26 AM   #2
ReverseApacheMaster
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Not only is this wrongly placed it is dumb as ****.

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11-30-2012, 03:33 AM   #3
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The problem with analogies is they are analogies. Give me a few days and I can probably come up with an analogy making slavery and Nazis sound good. I recently listened to Warren Buffett talk about taxes and is it fair that he pays 14% area and the people under him making a fraction of his pay 30% taxes? Taxes haven't been this low for the wealthy in half a century amd asking CEOs who have never been payed higher to pay as much taxes as their secretary seems reasonable to me.

11-30-2012, 03:37 AM   #4
MalFet
/bɪər nɜrd/

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Why are these guys paying \$10 for a beer? Someone should teach them how to brew!
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11-30-2012, 03:45 AM   #5
Stix

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Pretty accurate but it is wrongly placed. I thought it was pretty funny though I have seen it before. Those who criticize it well... you know.
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11-30-2012, 03:47 AM   #6
swackattack
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Not the place. Shut it

11-30-2012, 03:49 AM   #7
jonmohno
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The poor should at least shine the rich paying sponsers shoes for their beers, not just sell crack and expect to get it free too. So are we bitching about a socialist society or are we bitching to just be bitching?

11-30-2012, 04:07 AM   #8
Phunhog
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While it might very well be misplaced to be in this forum. But if you don't like what the subject is you can do what I do for most topics...IGNORE it!!
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11-30-2012, 04:20 AM   #9
raabs
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Seriously?

11-30-2012, 04:21 AM   #10
ReverseApacheMaster
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Quote:
 Originally Posted by ShepFL THE TAX SYSTEM EXPLAINED IN BEER 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.
The whole problem with this premise is that it acts like everybody drank the same amount of beer and one guy is getting ripped off. More appropriately, the tax system works like this:

One guy drinks multiple kegs worth of beer. His bill is enormous but because he complains that he spends so much money, the bartender gives him a discounted price so he only pays \$2 per pint but he outspends everybody because he drank a ****load of pints.

One guy drank a three liter stein. He's mad the first guy got a discount so the bartender gives him a small discount, too.

Four guys in the middle get one pint and pay the regular price of \$5 each.

Four guys at the bottom only get one ounce samples. The bar doesn't charge for samples so they don't pay anything.

The first guy then proceeds to bitch about how he's subsidizing the bottom four getting one ounce samples and wants the bar to stop giving out samples.

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