You're going to understand the current tax plan alot better after you
read the folllowing. Enjoy and share.



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 bar, 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.



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

Amen brother. Long overdue for an overhaul.

my mantra:...read Ron Pauls ideas on the economy....

Loved the post, GardenForge! Food for thought, and well composed.

Thanks.

Oceans

one of if not the best analogy for our tax system that I have ever read.
And simple enough even a(insert group here) could understand it.

thanks

doc

Not a bad mantra davinci. Keep on keepin' on, pal!

Davinci, I'm heading out to look at a jobsite in Durand, WI right now.
Deep in the heart of cheddar land. Man is that a pretty ride albeit
long, it's very relaxing.

zap...I was born & raised in Minn...faribault...have lived in wisconsin
for 6 yrs now...I'm very quiet during football season..har har..
(moss pulling his pants down ..classic..)

Very good explanation on how it works garden. Too bad so many ppl just
do not get it.

Ron Paul wants to rid us of the IRS & the FED...(that illegal money
making operation)
what a great place to start to repair the money system we have...

Oh, now I get it!

I just have to cut and paste this to some of my friends. It was
terrific.

I wish I could take credit for this, but it was an email sent to me. I
first heard it a month or so ago on Talk Radio.