Interesting....
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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, boys and girls, 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 RULES dude. Do you have a link to the original article?

what is failure is incorporating your family. Kennedy's pay nothing.

My sophomore economics teacher (an avowed conservative) told me a variation of this story. Been retelling it ever since.

Absolutely awesome and 100% accurate

so let me get this straight... do they all drink the same amount of beer?

This one ?

http://davidk.myweb.uga.edu/





I do like the overall gist though.

Theoretically, yes.


Just for the record, I heard Obama state a number for the salary figure that will see a tax increase if he's elected, $70,000.

He considers folks who make 70,000 "rich"

That means for small business owners and freelancers who are not incorporated, make $100,000 a year in gross profit will have to pay on this increase, even though of that gross they are only going to bring $20,000 home.

i got it from here:
http://www.wisebread.com/bar-stool-economics-0

I make just over that!

Oh wait, my taxable income (after taking out insurance, retirement, medical flex plan, etc.) is lower than that. Never mind.

Obama is a fucking communist. Period.

Democrats scarape the bottom of the barrel of American society for votes.

Personally I don't think that you should be allowed to vote unless you can prove you're making more than $24,000 a year, because essentially you aren't contributing to the economy therefore I fail to see how you should have any say in selecting who decides economic policy for this country.

Oh wait, if we did that there would never be a Democrat that would ever get elected. Oh darn.


Yeah I'm gonna be fucked paying %40 income tax if Hillary and/or Obama get their way becacuse I'm just so so so so so so so so rich

HAHAHA

Disenfranchisement much?


Seriously, Aaron....how truthful are you being with your posted political views on Techsans?
Because you call Obama an "evil liberal hippie communist end-of-world blah blah waaaaah" guy, yet you make completely unAmerican and fucked up statements like that...

Never understood why it takes a layman's story for people to understand that rich people pay the most taxes, and therefore benefit the most from tax breaks.

Isn't this a problem or am I reading it wrong?
Wouldn't the rich guy drink more beer (i.e. he has more money to spend so he pays more of the tab aka taxes) and the poorest people get only drops (i.e. pay minimal because they don't have the money to spend)?

Isn't that what differentiates between the rich and poor men. The amount of beer they can afford to pay?

They pay the most taxes $$$ wise, but is it true if you considered it the percentage of their income? I remember something like Rupert Murdoch said he would pay someone $1million if he/she paid a lower percentage of taxes than him, but idk...

The example isn't how much drink is distributed, it's how the bill is divided.

If a "poor" person pays less taxes then they have money to spend because it didn't go to the government.

The point is, if the wealthy keep being required to pay more and more, they will eventually just stop paying. They don't want to pick up the tab for those who pay the least. If the poor can't pay, they shouldn't receive the benefit (ie, drink drops).