Bar Stool Economics Suppose that every day, ten men go out for beer and the bill for all ten comes to $100 and 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." 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!" "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, PhD.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.
Tax reduction should be proportional eg 1% all around not reduction to those at the top whilst the rest pay more eg they get a 5% pay cut whilst I as a nurse take a two year pay freeze.
Self employed mate, if I dont work I dont get paid. At the moment have a spinal problem, need to work but cant. But hey Im doing well ,,the government gives me £71 per week for me and my wife to live on, no rent, no council tax reduction,,,,,,,,,,,,,WHY,,,,,,,,,,,,,,because I have savings that I worked all my life for. I am supposed to retire next year, but I have no intention of doing so, would just love to be able to work. as I said, if I dont work I dont get paid. and no matter who you are or what you do, £71 per week for two folks realy works eh?
I believe that if you give to society, then when you need it the most, society should give back to you. What I don't agree with is the first 4 drinkers demanding savings, even though they have contributed ****. I also strongly believe that if you are going to collect the dole, you shoul e drug and alcohol tested. If I have to do it to earn the money youre goin to be reliant on, you should pass the test to warrant claiming it. Also hope the back gets better soon mate!
Sorry about yer back Marra just another way the Government screws folk you've paid your stamp your whole life and you should get something back not penalised because you've try to save and put something away Just I hate the injustice of the system that benefits those at the top an big business and screws every one who works to make ends meet Cameron et al are just out to line their own pockets and those pf their cronies and the rest of us be damned .
Buying drinks in that situation isn't a real life situation. The rich employ people to work out ways so they don't have to pay! The poorest get taxed on everything, then have taxes on top of taxes. Fuel duty, car duty road tax. Vat on food, products and services. The rich claim all these back or avoid them all together. As for alcohol testing to qualify for the dole!!!!! Bloody hell! Why stop there, lets line them up against a wall and just shoot the ****ers. Having been in the horrible position of having to claim the dole in a building slump in the 80s. If someone had said to me my dole would stop if I had a drink, I would have ripped off their heads and spat in the stump of their necks.
