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Our Tax System Explained Using 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 content 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." So 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 got!'
'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.
Location: The Chatterdome in La La Land, CaliFUNia
39,031 posts, read 23,029,434 times
Reputation: 36027
Quote:
Originally Posted by MovingForward
The issue is that a teacher who makes--if she/he's lucky--$50,000/year is in a 28% tax bracket, and probably has no write-offs. That 28% makes a significant difference for that teacher, in terms of quality of lifestyle. Someone who makes a half-million a year, with write-offs, may very well end up paying less in taxes than the teacher--and their quality of life is not affected.
To be rich and whine about having to pay more taxes--especially a measly 3% more--is to have no class. Only the crudely wealthy--generally, the newly wealthy--throw a fit about taxes.
Teachers get tons of tax write offs so maybe you should use another profession to make your point.
Spoken like someone with no money and no skill to get themselves any.
If we keep abusing the people who have money, pretty soon they'll just take their ball to someone else's yard to play. Then where will we be? Just because you don't have money and you don't have the brains or the skill or the balls to make some doesn't mean someone else should carry your ass.
We need a fair flat tax.
What makes you think that paying taxes is an "abuse"? Anybody who is going to pay an increase in taxes of 3% on income over $250,000/year needs to shut up the whining. If they want to "take their ball to someone else's yard to play," they're selfish cowards.
There's no such thing as a "fair flat tax."
Nothing worse than people with money crying about having to pay taxes. In fact, it's classless. Simply put, it's gross.
Oh--and I have a plenty comfortable income, thanks. I just have no problem paying more taxes since what I have doesn't ONLY come from hard work. It also comes from being given opportunities that many other people don't have.
Location: The Chatterdome in La La Land, CaliFUNia
39,031 posts, read 23,029,434 times
Reputation: 36027
Quote:
Originally Posted by monkeywrenching
want a fair tax?
then everyone pays the same %, meaning everyone pays a tax of 10%, no more and no less. that way the socialists on the left and the rino's on the rino have no complaining to do at all.
if govertment cannot make do with that 10%, then start cutting programs, firing federal employees and reduce politicians pay.
I actually paid 80k, so I guess I'm doing really really fine to you? Oh wait I am doing fine. I worked 320 plus days last year, but yes I'm getting along fine. I was gone from home EVERY one of those days, but yes I'm fine. I missed out on a lot of my sons life last year, but yeah I'm fine. I had to live in a 12' by 12' shack most of those day, but yeah I'm fine. I'm glad you know my situation and how hard I work for every dollar I have. Thanks for your concern tho.
What are you complaining for??? You seem to be very affluent and successful...
By the way, working 320 days last year is a personal decision you made - or did someone put a gun to your head and force you to work that hard???
So putting in all those hours, at the expense of your family relations, is your decision - so stop complaining...
I know several people like you - they focused on building a financial empire - put their families a distant 2nd - and now that they are ready to retire and want to be with their family - are either divorced or facing divorce, and their kids could care less about them...
Not exactly my definition of success - but they ended up with the type of life that they worked their entire life to achieve - so it is impossible to have sympathy for them...
What makes you think that paying taxes is an "abuse"? Anybody who is going to pay an increase in taxes of 3% on income over $250,000/year needs to shut up the whining. If they want to "take their ball to someone else's yard to play," they're selfish cowards.
No, it's simply financial good sense.
Quote:
There's no such thing as a "fair flat tax."
Yes, there is. Just because you aren't capable of grokking it, doesn't mean it's impossible.
Quote:
Nothing worse than people with money crying about having to pay taxes. In fact, it's classless. Simply put, it's gross.
And so just because you don't agree with something, means that all of us have to suffer your unreasonable ideas? Thanks.
Quote:
Oh--and I have a plenty comfortable income, thanks. I just have no problem paying more taxes since what I have doesn't ONLY come from hard work. It also comes from being given opportunities that many other people don't have.
Blah blah blah big deal. I know people living on $10k a year that consider it "comfortable income", so what? In my opinion, everyone should bear an equal burden. So stop with the baseless accusations of classism, because I don't give a darn what someone makes as long as the tax burden is shared equally.
Location: The Chatterdome in La La Land, CaliFUNia
39,031 posts, read 23,029,434 times
Reputation: 36027
Quote:
Originally Posted by MovingForward
So, in your worldview, no one should want to be a teacher. And if they do want to be a teacher, they should be penalized and mocked for it. And yet, everybody wants their children to have good teachers.
A flat tax is a regressive tax. 10% tax on someone making a million a year won't impact that person's standard of living at all. 10% tax on someone making 35,000/year will have a significant impact.
I paid WAY more than 10% when I made less than 35K. Right now, a flax tax of 10% would ease the tax burden for everyone except those who do not currently pay.
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