TopicsBoard archive Politics / Society / Religion: February 2008: American taxes in "beer terminology"

This is brilliant and in a format that I know everyone on this list can relate to.


A professor at the University of Georgia explains the United States Tax
System in an easy to understand way. Its pretty crazy so read on…

From the University of Georgia:

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, 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

That was absolutely brilliant. Bravo!

Thanks suckerfish, but I can't take the credit. It was an e-mail that I recieved, :-(

It seems to me that people are always leaving the UK because of high taxes..

... The U.S. taxes our income (illegally [& typically 25%]); then when we buy anything with what we have left, they charge us a sales tax.... If we try to sell what we bought, we have to pay taxes yet again; (not to mention), If we "keep" said item, we are charged "property taxes". Don't even get me started on the "State & Municipal government"...

Yeah, it's total madness how everyone in America gives to the government what they can afford to give. That 10th man sure has it rough. It's nothing short of a miracle that he can even feed and clothe his servants.

Miracles abound, Glory Alleluia, come see my own page on Facebook, DEIA CATHAR, a group where I AM MOD, mweh heh heh hehhhhhhhh

anybody know how to run a facebook group? LMAO

the poor pay more than the rich. Warren Buffet the worlds 2nd most rich man mentioned his secretary makes $80,000 a year and is taxed at 30% while he is taxed at 17% and he makes $300 million a year.

Poor people in America are like Kings in a third world country..why do you think illegal Mexicans come to America?

who gives a shit wether he turns up or not, the gov still looks for taxes so FO :)

-x-

.... (see "Stay in England" posted above), lol.

i was drinking beer at the time, got quite annoyed.

-x-

...that tends to happen sometimes, lol.

Fool that drinks to intoxication on internet forum is either a lonely drunk or very poor company...me

...both (yet not ashamed to "not" be a part of you people).

I don't think the taxes are the real problem. What David R. Kamerschen, Ph.D. forgot to mention.

Men 1-4 are collecting unemployment benefits, because the factory they worked at was outsourced to India by the board of Directors that Man #10 chairs.

Men 5-9 still work for man #10 and apparently they aren't making enough wages combined to pay off an $80 bar tab.

In the meantime, Man #10 watches profits go up 200% over the fiscal year and sit's on his $10 million dollar bonuses on top of his 7 figure annual income. While 5-9 struggle to raise families on shit wages.

In conclusion, Man #10 can take his greedy ass overseas and blow himself. He's lucky he got off with just an assbeating. In fact, WTF was #10 thinking when he decided to drink with 1-9? He's lucky he didn't get a similar assraping like he had been giving all of them.

Robert Keith Dubberzz No.Ph.D.

I'll drink to that.