Conesmasher Posted October 7, 2008 Report Share Posted October 7, 2008 Got it in an email.....so the validity is untested This little story about some beer drinkers explains a lot. A good lesson for our country. 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. David R. Kamerschen, Ph.D. Professor of Economics, University of Georgia ..... Does it make sense now? Quote Link to comment Share on other sites More sharing options...
sol740 Posted October 7, 2008 Report Share Posted October 7, 2008 Flat tax ftw. I shouldn't pay a higher or lower percentage of income than anyone. Quote Link to comment Share on other sites More sharing options...
Conesmasher Posted October 8, 2008 Author Report Share Posted October 8, 2008 Flat tax ftw. I shouldn't pay a higher or lower percentage of income than anyone. Thorne approved: You hate poor people!! Quote Link to comment Share on other sites More sharing options...
TheHaze Posted October 8, 2008 Report Share Posted October 8, 2008 Flat tax ftw. I shouldn't pay a higher or lower percentage of income than anyone. Agreed. Quote Link to comment Share on other sites More sharing options...
rch10007 Posted October 8, 2008 Report Share Posted October 8, 2008 You can't even get close to the same tax revenue with a flat tax. Quote Link to comment Share on other sites More sharing options...
Science Abuse Posted October 8, 2008 Report Share Posted October 8, 2008 That was oversimplified. Quote Link to comment Share on other sites More sharing options...
TheHaze Posted October 8, 2008 Report Share Posted October 8, 2008 That was oversimplified. ...or you make it too complex. Fair is simple. Quote Link to comment Share on other sites More sharing options...
Science Abuse Posted October 8, 2008 Report Share Posted October 8, 2008 ...or you make it too complex. Fair is simple. Anyone trying to sell you something simple is trying to take something from you. Any claim that the root of a problem is simple should be treated the same as a claim that the root of a problem is Bigfoot. Simplicity and Bigfoot are found in the real world with about the same frequency. Things are complex, you have to bread more than a cute story by Ann Coulther to know what's going on. Quote Link to comment Share on other sites More sharing options...
sol740 Posted October 8, 2008 Report Share Posted October 8, 2008 Is it me or are you guys debating two seperate things ? Mike I think you're talking about flat tax. Science, I believe you thought the analogy is oversimplified. (it is) Or am I off-base. Quote Link to comment Share on other sites More sharing options...
Conesmasher Posted October 8, 2008 Author Report Share Posted October 8, 2008 So if I quit my job I'll get free beer? Damn straight!! Quote Link to comment Share on other sites More sharing options...
sol740 Posted October 8, 2008 Report Share Posted October 8, 2008 So if I quit my job I'll get free beer? Lets all quit our jobs. Maybe the government will pass a bill that can fund our drinking. Oh ... wait ... thats called welfare. Quote Link to comment Share on other sites More sharing options...
rch10007 Posted October 8, 2008 Report Share Posted October 8, 2008 That was oversimplified. Oversimplified is: 95% of the population = 40% of the Tax Revenue 5% of the population = 60% of the Tax Revenue 95% of the population gets all the same benefits that the 5% gets who actually pay for it. As said above, one of those benefits are roads and highways. Think about it when you drive your car to work. Over half of the tax revenue to pay for that road was paid for by only 5% of the people who drive on it. Is that fair? They pay for a road that people who barely contribute to making it get to use it as much or more than they do? How is that fair? Quote Link to comment Share on other sites More sharing options...
thorne Posted October 8, 2008 Report Share Posted October 8, 2008 Thorne approved: You hate poor people!! how did you know i supported it =). Yes i do. flat% So If i pay 15% you pay 15% Quote Link to comment Share on other sites More sharing options...
rch10007 Posted October 8, 2008 Report Share Posted October 8, 2008 how did you know i supported it =). Yes i do. What do you support? A flat tax? Please explain to us how a flat tax works. Use your toes if you have to. Dealing with trillions can get tricky if you don't carry that pinky toe. How you can support something you don't understand? Quote Link to comment Share on other sites More sharing options...
Kevin R. Posted October 8, 2008 Report Share Posted October 8, 2008 Lets all quit our jobs. Maybe the government will pass a bill that can fund our drinking. Oh ... wait ... thats called welfare. Can't buy beer with food stamps. My buddy used to try all the time with his dead beat mom's card. Quote Link to comment Share on other sites More sharing options...
sol740 Posted October 8, 2008 Report Share Posted October 8, 2008 Can't buy beer with food stamps. My buddy used to try all the time with his dead beat mom's card. You sell them. Quote Link to comment Share on other sites More sharing options...
rch10007 Posted October 8, 2008 Report Share Posted October 8, 2008 You sell them. ...then buy beer, duh! Quote Link to comment Share on other sites More sharing options...
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