I received this broadcast email thought I would share it as it might provide
some humour

At last the tax system explained such that we can understand.


While modeling his stimulus plan after FDR's new Deal in which he repealed
prohibition, Obama has developed the "stimulating" Beer Tax Plan.



THE TAX SYSTEM EXPLAINED IN BEER

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
ball. "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 men would
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? 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 every body'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 a higher percentage the poorer he was, to follow the
principle
of the tax system they had been using, and he proceeded to work
out
the amounts he suggested that each should now pay.

And so the fifth man, like the first four, now paid nothing
(100%
saving). The sixth now paid $2 instead of $3 (33% saving). The
seventh
now paid $5 instead of $7 (28% saving). The eighth now paid $9
instead
of $12 (25% saving). The ninth now paid $14 instead of $18 (22%
saving). The tenth now paid $49 instead of $59 (16% saving).

Each of the six was better off than before. And the first four
continued to drink for free. But, once outside the bar, the men
began
to compare their savings..

"I only got a dollar out of the $20 saving," 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 benefit than me!"

"That's true!" shouted the seventh man. "Why should he get $10
back,
when I got only $2? The wealthy get all the breaks!"

"Wait a minute," yelled the first four men in unison, "we
didn't get
anything at all. This new tax 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 their 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 government ministers,
is how
our tax system works. The people who already pay the highest
taxes
will naturally 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.

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

Herein lies a great lesson -- government adds no value to beer
drinking -- nor anything else it's involved in.

"Matt" wrote in message ...

I received this broadcast email thought I would share it as it might
provide some humour

At last the tax system explained such that we can understand.

Bumper-sticker politics can certainly be fun, but rarely useful, especially
when they rely on forgery (as so so many of these examples of chain e-mail
cracker barrel wisdom).

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

"Contrary to Internet folklore, Dr. Kamerschen is NOT the author of "Tax
Cuts: A Simple Lesson in Economics" or “Bar Stool Economics” or anything
similar to that."

Besides, you forgot the part about the richest guy using loopholes in the
tax code arranged by his corporate lobbyists to not only pay no taxes, but
get a subsidy from the govt.

Matt wrote:
I received this broadcast email thought I would share it as it might
provide some humour

At last the tax system explained such that we can understand.


Another beer analogy:

http://www.daybydaycartoon.com/2011/01/29/#005963

On 1/29/2011 6:31 AM, HeyBub wrote:
Matt wrote:
I received this broadcast email thought I would share it as it might
provide some humour

At last the tax system explained such that we can understand.


Another beer analogy:

http://www.daybydaycartoon.com/2011/01/29/#005963


'Course, you don't buy beer, you only rent it ...