TAXES and their implications

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txtittyfan
The Tax System - Explained 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 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 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 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 then 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.


19 comments

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avatar for Dougster
Dougster
12 years ago
I think the moral of the store is that tittyfuck likes to drink and trade, or drink and give market advice. "Oh yeah, short them treasuries! Short that dollar! Them Chinese gonna stop buying our debt any day now, I tells you!"
avatar for Tiredtraveler
Tiredtraveler
12 years ago
The last line is the most true.
avatar for deogol
deogol
12 years ago
I wish a certain party would be about less on taxes and how to increase income in a global economy.
avatar for sinclair
sinclair
12 years ago
Thanks for sharing. People with wealth will emmigrate before living in a society where everyone is degenerated to the lowest common denominator.
avatar for Otto22
Otto22
12 years ago
Amen, brother!
avatar for txtittyfan
txtittyfan
12 years ago
And if you still do not think this is true, this is what has happened to Ca with their policies of liberalism and taxation.

http://www.ocregister.com/articles/calif…
avatar for Dougster
Dougster
12 years ago
Come on now, tittyfuck, I bet you have enough capital loses on those short treasuries to last you the rest of your life. Why you got you panties in a knot all over this anyway?
avatar for coylongitude
coylongitude
12 years ago
This analogy doesn't work. In your analogy, beer = the benefits of living in America. But unlike beer, the benefits of living in America are partially responsible for the money in our pockets that we use to pay taxes. Taxes aren't some arbitrary fee we have to pay for no reason. It's what we contribute to keep America great. Furthermore, beer is an absolute luxury. For the poorest Americans, the social safety net the government provides is not a luxury, in many cases it's what keeps them (and their kids) off the street. It's a net good for the country for these people to be off the street. Your analogy is not apt because it has no bearing on the richest guy's well-being whether or not the poorest guy has beer. Also, the theory of a tax system that favors the middle class is that it will enable the economy to grow because currently the middle class does not have enough money to buy things that stimulate business and create jobs (An extra $100 in the pocket of 100 middle class people does more for the economy than $10,000 in the pocket of one rich guy). In your analogy, making it cheaper for the middle/poor people to buy beer has no benefit for the rich guy. In the real world it does.

My point is your analogy just makes things more complicated and isn't particularly helpful...
avatar for newmark
newmark
12 years ago
I don't get it. Can you explain it with titties instead of beer?
avatar for jester214
jester214
12 years ago
It's on oversimplification @coylongitude, it's not meant to be perfect, it does point out a few things that certain people choose to ignore.

But really it's failing in another way, the poorest 2 guys should have gotten cash from the bar owner in the form of an EIC.
avatar for crsm27
crsm27
12 years ago
@ Coylongitude.....

The analogy is correct. It shows how our tax system works with the simplification of dumbing it down to people drinking beers. The main point shown here is that if the wealthiest decide to say F this and go over seas. Look what the rest is holding the bag for......everything.

Yes the wealthiest do pay more in taxes and gets the same benefits....ie roads, public schools, public transportation, etc. All paid for by taxe
avatar for gatorfan
gatorfan
12 years ago
I think this topic
avatar for mjx01
mjx01
12 years ago
Yes there is some simplification involved, but overall great analogy!!!

@crsm27... what's the alternative? EU is more broke than US. France is going to 75% (WTF!) for their highest bracket. Canada is attractive (see farmerart's reviews) if you don't mind waiting for healthcare. England, Japan and others just don't provide really expensive drugs and procedures. China and Russia can and will just take someone's wealth.

The real danger is the wealthiest and other productive people like doctors and engineers finally give up trying to hold shit together for everyone else. (no going oversees necessary, just stop trying)
avatar for mjx01
mjx01
12 years ago
From the article linked above:

"California has one-eighth of the nation's population but one-third of its welfare recipients."

Not surprised.
avatar for Papi_Chulo
Papi_Chulo
12 years ago
^ And yet we voted to make the rest of the U.S. like California!!!
avatar for Pablo Antonio
Pablo Antonio
12 years ago
Great analogy TxTittyFan.

Can't wait till the government runs stripclubs like health care. Looking forward to free dances and extras.
avatar for samsung1
samsung1
12 years ago
I'm glad there are no taxes yet on lap dances. The only time I have paid tax at a strip club is with the food.
avatar for crsm27
crsm27
12 years ago
Mix... I agree with you. The alternative isn't good and it will be doctors wanting to just leave or quit their profession. Just wait with the health care bill passed and now taking hold. I could see more doctors shifting to private practice. They can take on clients who they want (can pay). With out BS. That way they can charge actually what the cost is. Instead of trying to make up for other people who didn't have the means to pay.

Also on canada.....is good but the health care (which people say they want) isn't good. I know of a guy who is has been waiting over 8 months to get his prostrate cancer seed implants. In the US that would have been done 2 weeks min after diagnosis.

People in the US are impatient and want and demand imediate satisfaction.... hell why do we go to strip clubs.....no BS like the dating world....we see tits and ass right away. HAHA
avatar for Tiredtraveler
Tiredtraveler
12 years ago
What people do not understand is that the only thing I owe my neighbor is to not violate his rights. Many people do not understand is that same neighbor has no right to violate my rights by taking what I earned without his help. But the government does not see it that way. The statement "you did not make that" is an immoral lie. If I own a business and sell a product I pay taxes that pays for that road and the bridge. If I have employees I pay them before I pay myself and after taxes, wages, and material cost I take what is left. If I do not do well one year I still must pay my employees, taxes and material costs before I pay myself so the government and employees have no risk. At the end of the day if there is nothing left I do not get paid. The government always gets paid the employees always get paid and if I can't I risk going to jail. If I don't get paid decide to close the government comes to me puts a gun to my head and says "no you are not allowed to close and not pay your employees even if you have no business because it is not 'fair'".

Government is the only entity that gets away with not paying its bills, can raise prices and force you to pay the raised price at gun point. If you do not believe that them stop paying you taxes and see what happens to you. Men with guns will show up at your door and take you away.

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