VOG Forum banner
1 - 20 of 35 Posts

·
Registered
Joined
·
1,248 Posts
Discussion Starter · #1 ·
I didn't write this. It appeared in an email today and I thought I'd share it with the folks on The VOG as this is interesting. It is not intended to offend, just food for thought.

Bar Stool Economics

Our Tax System Explained: 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 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!

And that, ladies and gentlemen, 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.

David R. Kamerschen, Ph.D.
Professor of Economics
University of Georgia

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

·
Registered
Joined
·
4,895 Posts

This is why we need a Flat Tax rate say 10%. Citizen's and Corporation's non-exempt. No deductions no write offs
The guy who makes one dollar pays a dime .
The Company that makes Ten dollars pays one dollar.
 

·
Registered
Joined
·
2,518 Posts
Alberta has the flat tax for it's portion of income tax. It's 10% on all taxable income
 

·
Registered
Joined
·
17,745 Posts

In 2007 the top 1% payed more in income taxes (44%) than the bottom 95% of earners (38%).
The top 2-5% picked up the rest (18%).
The top 1% saw their personal income go up over 120% over the last 10 years.
The rest of us peons only saw personal income grow less than 20% over the same 10 year time period.
So the rich averaged 12% year over year increases while the rest of us got a 2% yearly average increase.
The rich should be happy to pay more as they benefit more.
They also should be happy that us poor folk don't drag them from their gated communities and tar and feather them for shipping our jobs overseas.
 

·
Registered
Joined
·
12,236 Posts
bigfoot said:
In 2007 the top 1% payed more in income taxes (44%) than the bottom 95% of earners (38%).
The top 2-5% picked up the rest (18%).
The top 1% saw their personal income go up over 120% over the last 10 years.
The rest of us peons only saw personal income grow less than 20% over the same 10 year time period.
So the rich averaged 12% year over year increases while the rest of us got a 2% yearly average increase.
The rich should be happy to pay more as they benefit more.
They also should be happy that us poor folk don't drag them from their gated communities and tar and feather them for shipping our jobs overseas.
Now I really didnt think people thought like this but that is why our Country has gone to ****. Firstly, if the rich didnt get richer you would never see an increase. Second if you didnt tax the rich to death maybe jobs would have to be shipped over seas. This is a capitalistic Country and somewhere people have lost sight of that. Why should I be penalized because I made smarter decisions, managed my money better and took risk? The re-distribution of wealth is very common in socialistic countries, one day pick up a book and see how well it worked for the USSR.
 

·
Registered
Joined
·
17,745 Posts
Pay close attention to what is going down right now in France.

Also remember that in the USA, everyone has guns.

Telling the poor to "eat cake" ain't gonna cut it this time.

Oh, by the way, I did alright for myself.
I retired at age 54.
 

·
Registered
Joined
·
12,236 Posts

Yes I pay very close attention to the Global markets and France's problems have been cause by the unjustified rise of wages for the lower classes putting them out of the competitive market globally. So I really dont know where you are going with that statement...
Also, not everyone has a gun if they did we wouldnt be fighting to keep our 2nd Ammendmentrights as set forth in the Constitution.
BTW I would love for someone to come to my gated community and try to tar and feather me...
 

·
Registered
Joined
·
12,236 Posts
advntrus said:
bigfoot said:
Pay close attention to what is going down right now in France.

Also remember that in the USA, everyone has guns.

Telling the poor to "eat cake" ain't gonna cut it this time.

Oh, by the way, I did alright for myself.
I retired at age 54.
So you retired at 54, and consider yourself one of the "Poor Folk"....LMAO.
Sounds to me like maybe you're one of the "Spoiled" folk.
Shawn
Now Shawn be nice to all the poor folks that ride a $20k motorcycle, have a computer or two, internet connection that I am sure isn't dial up and probably multiple TV's... I wonder ifany of these poor folks look back 30-40 years ago and realize what it is to be poor?
 

·
Registered
Joined
·
6,128 Posts
Shawn, where the hell you been for so long? I was getting worried that this post had been up for days and you hadn't responded yet! Thought maybe you were kidnapped.
:)
 

·
Registered
Joined
·
3,394 Posts
bigfoot said:
Under the "FairTax" (I looked it up and filled in the calculator) I would pay more in Federal Taxes.
http://www.fairtax.org/site/PageServer?pagename=calculator
10% sales tax was suggested, but a rate of 17% is actually needed to have a break even point.
Mine works out a bit differently

With the Fair Tax, we get:
8.34% MORE spendable income.
$7,189.02 MORE purchasing power.
$8,329.41 LESS federal taxes.
 

·
Registered
Joined
·
17,745 Posts
Never said I was poor.

I just have a more "Christ-like" attitude and compassion for the poor than most "Christians".
 

·
Premium Member
Joined
·
3,850 Posts
advntrus said:
Half-Crazy and I are Engaged to be married! I know....I know.............It just kinda happened. I guess I just couldn't resist that big strong motor of his. I don't really know what to say. No we don't have a date set yet. Obviously our wives are not going to be attending the ceremony. I hope you all can come. Massachusetts is FABULOUS in the spring.
Bye for now.
Love you all
Shawn & HC Bear
I'm speechless.

Really, I'm speechless.
 

·
Registered
Joined
·
17,745 Posts
Ah, you got me! LOL

By poor I mean that I don't presently make $250,000 a year.
Being retired on a fixed income I do feel somewhat poor(er).
But I still payed cash for my new Vision.

There was a interesting "Map" of the poorest areas of our country released today.
The thing that I found most amusing was that the "Red States" have the highest concentration of poor residents. (Many in the mid to high 20%)
These same "Red" States have some of the most miserable and embarrassing educational accomplishments, or should I say failures.
 

·
Registered
Joined
·
752 Posts
bigfoot said:
Ah, you got me! LOL

By poor I mean that I don't presently make $250,000 a year.
Being retired on a fixed income I do feel somewhat poor(er).
But I still payed cash for my new Vision.

There was a interesting "Map" of the poorest areas of our country released today.
The thing that I found most amusing was that the "Red States" have the highest concentration of poor residents. (Many in the mid to high 20%)
These same "Red" States have some of the most miserable and embarrassing educational accomplishments, or should I say failures.
Are you able to provide a link to the map? Thanks!
 

·
Registered
Joined
·
2,995 Posts
The way I see it the more you make the more you spend. Those with the most spend the most creating jobs for everyone.

problem with everyone deserves a "cut" is that the guy earning 75 a year as an worker thinks the guy making 150 a year as overpaid.

Maybe since you're so important the guy at McDs making you your value meal should make 75 as well since without him you'd go hungry at lunch.

The where's mine syndrome never ends.

What validates your importance over anyone elses?
 
1 - 20 of 35 Posts
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Top