The Tax System Explained In Beer
I am The Best23
This article is about our real life tax system and how corrupt it is.
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 h 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.
So what is the incentive to be a successful business man if you are taxed more than anyone else and you are hated for still having too much money.
This was an article i saw from this link http://www.mrconservative.com/2012/01/688-tax-system-explained-beer/
God Bless America,
I am The Best23
Comments
You, sir, are a genius. Amazing article!
thank you very much Contrajuris
Suppose that every day, ten men go out for beer and they order 10 glasses of beer (or 120 ounces of beer). If they split up the beer the way that wealth is distributed in the U.S.A, it would go something like this:
The first five men (the poorest) would get a sip of beer each or 0.672 ounces.
The next four men would get a small glass of beer each or 8.22 ounces.
The tenth man (the richest) would get 7 glasses of beer or 83.76 ounces.
The ten men went to the bar every day and the tenth man seemed quite happy with the arrangement, until one day, the owner threw them a curve. "Inflationary pressures are rising," he said, "I'm going to reduce the amount of your daily beer by 20 ounces. You will now receive 10 glasses of 10-ounces each, or 100 ounces total."
The group still wanted to split up the beer the way that wealth is distributed in the U.S.A. How could they divide the loss of 20 ounces of beer so that everyone would lose his 'fair share?' They realized that 20 ounces divided by ten is 2 ounces.
But if they subtracted that from everybody's share, then the first five men would have to pay the bartender 1.328 ounces of beer each. So, they decided to only take 0.672 ounces of beer from each of the first 5 men and take the remaining 16.64 ounces from the remaining 5 men.
Each of the first five men would give up the sip of beer (0.672 ounces) that they received (a loss of 100😵.
Each of the sixth, seventh, eighth, and ninth men would give up 1.17 ounces each (a loss of 14.2😵.
The tenth man would give up 11.95 ounces of beer (or a loss of 14.2😵.
The result:
Each of the first five men would receive no beer.
Each of the next four men would receive 7.05 ounces.
The tenth man would receive 71.81 ounces of beer.
Each of the first five was worse off than before, having lost all of their beer. The next 4 were worse off, since they no longer received a full 8-ounce glass of beer. The tenth man still received 71.81 ounces (~ a si😜ack), and was still happy.
But once
But once outside the restaurant, the men began to compare their losses.
The first five men said, "We lost a sip of beer each. We don't get beer any more."
"Well, we lost more than a quarter of our beer" said the next four men "It's unfair that you only lost a sip of beer. We lost twice as much as each of you did."
"Wait a minute!" yelled the tenth man. "I gave up a whole glass of beer! I gave up more than all of you combined!!! The poor get all the breaks! First, they get free beer, and then they complain when they lose their free beer! The middle class are always whining about everything because they're too dumb to get as much beer as I do."
The tenth man called security, and the first 5 men were told to leave the premises, since they could not afford to pay for any beer.
The next 4 men stood silently watching, not wanting to risk the loss of any of their remaining beer.
The tenth man got into his chaufferred limo and went home.
The next night the first five men didn't show up for drinks, so the remaining five sat down to have beers without them. But, they discovered something important.
The first five men didn't show up to:
* harvest the grain and hopps to make the beer
* drive the trucks to bring the beer to the bar
* clean the beer glasses and sweep the floor of the bar
* serve the beer
* and, most importantly, work as the security guards to protect the tenth man and his beer
And that, boys and girls, journalists and college professors, wingnuts and supply-siders, big-c and little-c conservatives, is how wealth is distributed in the U.S.A. The people who have the most money get the most beer. Take too much "beer" from the poorest people, belittle them for being poor, and they just may not show up anymore to make and serve your beer.
Well, I am fairly certain that attacking people for being wealthy is far more popular than belittie poor people for their misfortune.
Actually the latter statement is considered unethical, although indifferent from the former case in which you attack someone for the money they own.
Hahahahahaha how could you measure "attacking people for being wealthy is more popular than belittling people for being poor" in any way but anecdotally? That is an unprovable statement.
Both beer analogies (rich guy treated unfairly and poor people treated unfairly) are horrible analogies of the way capitalism works in the United States. But... They are beer analogies, was the bar really set high here? Class warfare isn't the real problem/solution. The problem is a widening gap between rich and poor people, and the increasingly marginalized middle class. Take a look at the countries with the most. Income inequality, and you will find some of the most unstable countries in the world.
U.S. Capitalism works when upward mobility on merit is a possibility, not a pipe dream. It works when there is a level playing field and when there is laws that promote a fair, free market.
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loved it was totally awesome... about time someone figured out the tax system
cheers
What the hell does this have to do with this game?
I think I'm not ever looking at beer the same way again.
I was just going to vote it for the name, but reading it definitely merits one!
I'm not a big supporter of drinking alcohol...
Anyway I assume you are talking about RL, but your analogy kind of left a few things open.
1- Even if people pay the same % richer people will still pay more
2- It is rational for richer people to pay more
if you make $1,000,000 and pay 50% you still have a $500,000
If you make $50,000 and pay 20% you will only have $40,000
You may think you are getting the short end of the stick by making a million dollars wake up.
http://www.erepublik.com/en/article/wonders-of-nature-2566238/1/20
please comment here... I need 25 comments
nice article... I read all of it...