1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Tax System Linked To Beer

Discussion in 'Lounge' started by Expat Jack, Jan 17, 2020.

  1. Courtesy of Moore.co.uk

    Suppose that once a week, 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.
    And the tenth man (the richest) would pay £59. 
    So, that's what they decided to do.

    The ten men drank in the bar every week and seemed quite happy with the arrangement until, one day, the owner caused them a little problem. "Since you are all such good customers," he said, "I'm going to reduce the cost of your weekly 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? The paying customers? How could they divide the £20windfall 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 not only would the first four men still be drinking for free but the fifth and sixth man would each end up being paid to drink his beer. 

    So, the bar owner suggested that it would be fairer to reduce each man's bill by a higher percentage. They decided 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 (a100% saving).
    The sixth man now paid £2 instead of £3 (a 33% saving).
    The seventh man now paid £5 instead of £7 (a 28% saving).
    The eighth man now paid £9 instead of £12 (a 25% saving).
    The ninth man now paid £14 instead of £18 (a 22% saving).
    And the tenth man now paid £49 instead of £59 (a 16% saving). 
    Each of the last six was better off than before with the first four continuing to drink for free. 

    But, once outside the bar, the men began to compare their savings. "I only got £1 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 £1 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 only got £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 week 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 to pay 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 might 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.


    Discuss.
     
    • Like Like x 6
  2. Two pints of lager please..
     
    • Agree Agree x 1
  3. Packet of crisps on the side?
     
  4. Thanks, but I better wait for the others to come in...:upyeah:
     
    • WTF WTF x 1
  5. I know exactly what you mean. It’s an “interesting” discussion.
     
  6. meh, the wealthiest would of asked for a receipt and put it through as expenses.
     
    • Funny Funny x 3
  7. Wrong. The truly wealthy don’t carry any method of payment.
     
    • Like Like x 2
    • Lock Thread Lock Thread x 1
  8. Lots of logic.

    Where did the ancestors of the wealthy steal their money from?

    Just for another view point you understand...
     
    • Like Like x 2
  9. Is all wealth inherited then?
     
    • Useful Useful x 1
  10. my kids are relying on it.
     
    #10 finm, Jan 17, 2020
    Last edited: Jan 17, 2020
    • Funny Funny x 1
  11. Go skiing
     
  12. one of them is only just back an hour from Austria skiing. the wee bassa is spending his inheritance already.
     
    • Face Palm Face Palm x 1
  13. Hardly.

    But a lot of the big money is. Connections, inheritance, etc. can make a huge difference to earning potential as well.

    As I said, just another view point.

    A lot of folks earn theirs. A lot of folks dont know when enough is enough. At which point buying the extra few rounds of beer really would not make a dent in their wealth or happiness.
    Greed affects top and bottom of society in equal measure.
     
    • Agree Agree x 1
  14. Income tax and sales tax are different concepts - sales tax disadvantages the poor.

    I see VAT increasing in the near future :thinkingface:
     
  15. I'd happily drink with most of you lot, it wouldn't cost me a penny. ;)
    Steve
     
    • Funny Funny x 2
    • Agree Agree x 1

  16. I haven’t heard this for decades!!!
     
  17. Fantastic, saw them in '97 in Morcombe :upyeah:
     
  18. You're travelling again!
     
    • Agree Agree x 1
  19. Don't know where I am most of the time, just wondering whether to nip down to the pub but I've no money.o_O
     
    • Like Like x 1
  20. No problem, show the bar-dude this post :upyeah:
     
    • Useful Useful x 1
Do Not Sell My Personal Information