Author Topic: Tax season is coming....  (Read 3507 times)

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Offline Linda

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Tax season is coming....
« on: January 25, 2008, 07:06:47 AM »
With the W-2's being passed out it is time to start thinking about the Tax Season again....

I got this in an e-mail and thought you guys might enjoy it.

NOW, while your figuring out your taxes, give this one some thought. 

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  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 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.
A liberal who is mugged by reality becomes conservative.

Offline bijou

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Re: Tax season is coming....
« Reply #1 on: January 30, 2008, 03:38:58 AM »
Thanks for that Linda, it's a great way to give people food for thought I'll be passing that on via email.



Offline NHSparky

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Re: Tax season is coming....
« Reply #2 on: January 30, 2008, 05:58:39 AM »
Okay, so where the hell is my W-2?
“Any man who thinks he can be happy and prosperous by letting the government take care of him better take a closer look at the American Indian.”  -Henry Ford

Offline SSG Snuggle Bunny

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Re: Tax season is coming....
« Reply #3 on: February 08, 2008, 04:17:40 PM »
Tax season?

YEEHA!

Imma gonna shoot me some tax collectors!

What's the bag limit this year?
According to the Bible, "know" means "yes."

Offline Linda

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Re: Tax season is coming....
« Reply #4 on: February 08, 2008, 05:27:15 PM »

We want to keep you legal so here is your license,
just fill in the blanks and you're ready to go.

« Last Edit: February 08, 2008, 05:50:50 PM by Linda »
A liberal who is mugged by reality becomes conservative.

Offline Taxman

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Re: Tax season is coming....
« Reply #5 on: February 08, 2008, 08:08:10 PM »

We want to keep you legal so here is your license,
just fill in the blanks and you're ready to go.



Looks like I better hide  :-)

Offline Linda

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Re: Tax season is coming....
« Reply #6 on: February 08, 2008, 08:18:34 PM »
Well...itis open season on Tax collectors....
A liberal who is mugged by reality becomes conservative.

Offline Atomic Lib Smasher

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Re: Tax season is coming....
« Reply #7 on: February 08, 2008, 09:44:39 PM »
Yeah, I got to amend my taxes. If I learned anything from life, it's not to go to a "tax preparation service" that has one inch thick bullet-proof glass protecting the workers and the "waiting room" that smells like piss and beer.  :bawl:

Liberalism is the philosophy of the stupid! - Mark R. Levin