How taxes work
 

I posted this in just for fun and since it said consider this before you vote, I would give some an opportunity to smile.

BTK

Read this, digest this and take heed.

Remember this when you vote!

EXPLAINING OUR UNITED STATES TAXING SYSTEM WITH 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. 'Since you are
all such good customers,' he said, 'I'm going to reduce the cost of your
daily beers 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 pay $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 p aid $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 very important....they didn't have en ough
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

For those who understand, no explanation is needed.
For those who do not understand, no explanation is possible!

:agree: I loved this the first time that I ever saw it! Glad to be able to read it again.

This is undoubtedly the clearest example of how Democrats think, that I know.

When I heard Obama talk about giving 95% of Americans a tax break last night I thought of this example. Somehow or another he and his party think that if you have too much money, (their viewpoint) that it is UNFAIR and it should be taken away from you to be redistributed amongst the Poor (once again their viewpoint) of our Country.

How does the top 5%, paying 50% of the taxes in this Country already, not seem fair? Obama says Tax Them More!

If you want to have higher taxes vote Democratic!

I too enjoyed reading this again. But now I wonder if there is sequel that goes something like this:

The Bar Keeper, and his wife start enjoying more and more vacations, celebrating the fact that they can charge $100 (now discounting the trade to $80) for $20 of beer, with overhead of another $25. However, their desire for the finer things soon outstrips their Cash Flow, and so they ask a Rich Uncle' Caretaker for advice. And that Caretaker says that everyone, even those without income but having some small nest egg for the future should unconditiionally and unquestioning "bail them out" by asking for $70 from those savings and serving no beer when that is collected. The Caretaker says that some stale popocrn from the bar could be somehow distrubuted to those that never saved for a popcorn maker. Another Caretaker asks that he take the arrows from the Cigar Storm Indian figure in the Bar to gove to some friends that are Martini drinkers.

I'm not sure where the story goes after this as everyone's avlue goes down, except for those that start colelctingthe Bar's Beer Mugs that are now unused somewhat dirty and pershpas some are chipped.

The only problem with the sequel is that if you have no income you shouldn't have been drinking beer in the first place.

There is no RIGHT in life to expect that the middle and higher income people in the bar should have to buy you beer.

The bar owner has the right to enjoy the rewards on the investment and hours that he has put into building his clientele.

It was the Government that made the bartender provide beer to the poor people, because they otherwise would not have been able to drink beer.

The bartender got into financial trouble Trying to support the lifestyle he had earned with his hard work.

The bartender asked the Government to pay for all the beer money that the bar owner was asked to give away.

Now the low and middle income consumers whine because they have had to pay for all the beer that they drank, knowing they couldn't afford to pay for it.

The bartender was going to loose his bar because nobody was paying for their beer after the rich guy left.

The Government spent some of the poor and middle class's tax money to bail out the mess they created, and now everybody is paying for the beer.

The next time, do not ask the Government, to to have the bartender make beer available to the poor people, which entices the middle people to say I'll have some of that subsidized beer, running up huge debt to the bartender, who asked to get payed before he is forced out of business.

I'll drink to that. Here's my $10.

Lol!
 

:1rotfl::1rotfl: Ya know, sometimes I take this board too seriously. Then there are those times, like tonight, where everything seems just nuts! :laugh:

Thanks for lightening things up!

Now what happened to the Bartender again? Oh ya, his wife ran away with the rich guy! :1rotfl: