Sunday, July 26, 2009

The Tax System Explained in Beer

This came off the 'net, via a "forward" and I unfortunately do not have an attribution. I would love to know who wrote this because this person is a genius.

If one does not already understand the dangers to our freedoms, our economy, and the future of our Country by now -- 7 months post 11/04/08 -- one either truly was hoping for this or truly had an immeasurable amount of naïveté and ignorance blocking the brain.

Read and weep ... or, better yet, read and bombard your elected officials in Washington to stop this madness.

Simplified Obamanomics

We have experienced [at least three years of bad policies,] specifically the years of the Democratic majority during President Bush’s administration. These bad policies were rushed through based on fear tactics. We have continued [since January 2009] to get the same thing.

Now, most especially, the rush is on, again, because our dedicated elected officials are rushing to get a bad bill through before they take their August vacation. This is, of course, without regard to logic, which demands that ANY THING done CORRECTLY has to be carefully planned, not rushed.

The tax system being pushed through under the guise of a much-needed “health care reform” is anything but carefully planned or thought through. The following is an explanation for the layman, the average “Joe,” who is, as always with anything planned out of Washington, overlooked completely.

The Tax System Explained in Beer

Suppose that every day, ten men go out for beer, and the bill for all ten comes to $100.00. If they paid their bill the way we pay our taxes, it would resemble something like the following breakdown:

The first four men, the poorest, would pay nothing for his portion of the beers.

• The fifth would pay $1.00 for his portion of the beers.

• The sixth would pay $3.00 for his portion of the beers.

• The seventh would pay $7.00 for his portion of the beers.

• The eighth would pay $12.00 for his portion of the beers.

• The ninth man would pay $18.00 for his portion of the beers.

• The tenth man, the richest, would pay $59.00 for his portion of the beers.

So that is what they decided to do. This went on for many years.

The 10 men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve and offered them a “change.”

“Since you are all such good customers,” he said, “I’m going to reduce the cost of your daily beer by $20.00, from $100.00 that all 10 of you pay now, to $80.00 for all 10.”

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 $20.00 “savings” so that everyone in the group would get their fair share?

They realized that $20.00 divided by 6, the actual number of paying customers, is $3.33. But, if they subtracted that amount from everybody’s share, then the fifth and sixth men would each end up getting paid to drink their 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 would pay. According to the “change,” explained by the owner, the new breakdown came to:

• The fifth man, like the first four, would now pay nothing: a 100% “savings.”

• The sixth man now paid $2.00 instead of $3.00: a 33% “savings.”

• The seventh man now paid $5.00 instead of $7.00: a 28% “savings.”

• The eighth man now paid $9.00 instead of $12.00: a 25% “savings.”

• The ninth man now paid $14.00 instead of $18.00: a 22% “savings.”

• The tenth man now paid $49.00 instead of $59.00: a 16% “savings.”

Each of the six was better off than before; the first four continued to drink free of charge.

After the first few days of this “change,” the men compared their “savings.” They were a bit surprised at the conclusions.

“I only got a dollar out of the $20.00,” declared the sixth man. He pointed to the tenth man and said, “But he got $10.00!”

“Yeah, that’s right,” exclaimed the fifth man. “I only “saved” a dollar, too. It’s unfair that he got 10 times more than I did!”

“That’s true,” shouted the seventh man. “Why should he get $10.00 back when I only got $2.00? 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 man 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. When it came to pay the bill, though, they discovered something important: they did not have enough money between the 9 of them to pay even half the bill!

And that, boys and girls, journalists and college professors, is how our tax system works.

• The people who pay the highest taxes benefit most from a tax reduction.

Tax them too much, attack them for being wealthy, and they may just not show up anymore. In fact, they may start drinking overseas where the atmosphere is somewhat friendlier.

Or . . . they may just shrug.

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