Tax cuts explained?

[MSTRS:Me]

What is the use of giving me all that info...but not the nitty gritty?

Us 10%ers have to have a laugh (at your expense of course) but not give away the secret of how we manage our vaunted position

[Ixion]

The communist version :

Every day 10 people went out together for a beer.

They'd put a hat on the table and everyone would throw in as much as they could afford. Then they'd give the hat to the bar owner, and he'd supply them with as much beer as it was worth.

Then one day the bar owner threw a curve ""Since you are all such of good customers," he said, "I'm going to reduce the cost of your daily beer by 20%. So, they all got more beer.

Then one day, someone noticed that one of the group never put anything in the hat. Yet he had plenty of money, big car, nice house, regularly booked $200 whores, the works. But, never anything in the hat. So the other nine watched him : and, sure enough, he never paid his whack.

So, the nine of them beat up the capitalist exploiter. So in future they had the same amount of money for beer, and one less person to divide it amongst.

[scorpious]

The communist version :

Every day 10 people went out together for a beer.

They'd put a hat on the table and everyone would throw in as much as they could afford. Then they'd give the hat to the bar owner, and he'd supply them with as much beer as it was worth.

Then one day the bar owner threw a curve ""Since you are all such of good customers," he said, "I'm going to reduce the cost of your daily beer by 20%. So, they all got more beer.

Then one day, someone noticed that one of the group never put anything in the hat. Yet he had plenty of money, big car, nice house, regularly booked $200 whores, the works. But, never anything in the hat. So the other nine watched him : and, sure enough, he never paid his whack.

So, the nine of them beat up the capitalist exploiter. So in future they had the same amount of money for beer, and one less person to divide it amongst.

hey I like that, positive rep for you my man

[FROSTY:Me]

Then theres the other version

Suppose that every day, ten people go out for beer and the bill for all ten comes to $100. Sopose one person actually doesn't drink beer He's a rum drinker Sopose said rum drinker because the group drinks beer pays for his own rum out of his own pocket.But still contributes to the beer fund
He still gets beaten up in the end for not doing the PC thing

[paturoa]

I've seen another one where those same 10 people going for a beer for in the UnZud bar pay $100 between them.....

....where half of them pay $9 between them and the other half pay $91

OR

those greedy rich people....

....the last one in the bar (about %10 of the population earn over $60) pays $44 for his beer!

http://www.treasury.govt.nz/budget/2...xpayers/01.htm

But wait there's more.... remember the first half, well most of them work their arses off, and that Cheif Thief dude from earlier, well he has now organised it so that as these people start to earn more they don't get any more. Go figure.

[Nasty]

Not a joke - so is an interesting tale ....



BAR ROOM ECONOMICS – HOW THE TAX SYSTEM WORKS

Suppose that every day, ten people 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 (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 (the richest) would pay $59.

So, that's what they decided to do.

The ten 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 were unaffected. They would still drink for free. But
what about the other six - the paying customers? How could they
divide the $20 windfall so that everyone would get their "fair share"?

They realised that $20 divided by six is $3.33. But if they
subtracted that from everyone's share, then the fifth and the sixth
would each end up being paid to drink their beer. So, the bar owner
suggested that it would be fair to reduce each drinker's bill by
roughly the same amount, and he proceeded to work out the amounts
each should pay. And so:

The fifth person, 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
drinkers began to compare their savings.

"I only got a dollar out of the $20," declared the sixth. She pointed
to the tenth man, "but he got $10!" "Yes, that's right," exclaimed
the fifth. "I only saved a dollar too. It's unfair that he got ten
times more than I did" "That's true!!" shouted the seventh. "Why
should he get $10 back when I got only two? The wealthy get all the
breaks" "Wait a minute," yelled the first four in unison. "We didn't
get anything at all. The system exploits the poor"

The nine drinkers 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.

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

[Mully]

REPOST!!!

Hurray, I got to say it first.

Sad but true anyway

[Stickchick]

Very interesting read, even the simple but smart looking doesn't need an explanation after that.

[alanzs]

As wealth has accumulated into the hands of the few, the right wing agenda has become even more transparent:
1. Accumulate wealth,
2. Do everything/anything possible so that nobody sees that #1 is occurring.

[Lias]

As wealth has accumulated into the hands of the few, the right wing agenda has become even more transparent:
1. Accumulate wealth,
2. Do everything/anything possible so that nobody sees that #1 is occurring.

I worry that people like you teach our children, I really do.

[Winston001]

As wealth has accumulated into the hands of the few, the right wing agenda has become even more transparent:
1. Accumulate wealth,
2. Do everything/anything possible so that nobody sees that #1 is occurring.

I know this is a popular view among some people but the reality of the real world defies the supposed conspiracy. Cars today are so cheap as to be almost disposable. Technology in the form of cellphones, ipods, computers abounds. We throw away food. Cafes, restaurants, bars, and fast food businesses are everywhere and patronised by the average punter.

If wealth was restricted in the hands of the few, we'd look like Africa where that is true. But not here - lucky us.

[Winston001]

Not a joke - so is an interesting tale ....



BAR ROOM ECONOMICS – HOW THE TAX SYSTEM WORKS

Suppose that every day, ten people 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: etc.......


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.

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

This is American and not directly applicable to all Western social democracies. Nevertheless the essential point is well-made - tax someone too harshly and they will strive to artificially avoid the tax.....or go elsewhere.

The most simple example for us in NZ is the flow of people to Australia. The wages are higher, the standard of living is higher, and taxes lower. It can be argued some Oz taxes are hidden but anyone I know who has gone there feels financially better off. They may still view NZ as a nicer place to live, but not enough to move back.

[alanzs]

I worry that people like you teach our children, I really do.

Like I say in my personal profile (which is really neither) be afraid! Open mindedness is a good thing, it makes people ask questions.

[Winston001]

As wealth has accumulated into the hands of the few, the right wing agenda has become even more transparent:
1. Accumulate wealth,
2. Do everything/anything possible so that nobody sees that #1 is occurring.

Hi Alanz - good on you for being a teacher. I'm just a bit doubtful that your post represents open-mindedness. You aren't questioning anything - which open-mindedness requires, instead you are stating a political opinion. No problem with you having an opinion, but its not the same as being open to other ideas.

[jrandom]

Fallacious bollocks, written for the low-IQ masses.

I shudder to see how little effort is required to manipulate the minds of the proletariat.