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Topic: Ten men go out for dinner. How our tax system works.

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Steve Myers
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Ten men go out for dinner. 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 $7.
* The eighth $12.
* The ninth $18.
* The tenth man (the richest) would pay $59.

So, that's what they decided to do. The ten men ate
dinner in the restaurant 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 meal by $20."

So, now dinner for the ten only cost $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 eat for free.
But what about the other six, the paying customers?
How could they divvy up the $20 windfall so that everyone would get his
'fair share'?

The six men 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 eat their meal.

So, the restaurant 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 paid $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 eat 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 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. 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
dinner, so the nine sat down and ate 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 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 at the table anymore.

_________________
Steve Myers
Post Fri Feb 06, 2009 8:08 pm 
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pan8
F L I N T O I D

Wonder who got the tip? Rolling Eyes
Post Tue Feb 10, 2009 6:15 pm 
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stevie teever
F L I N T O I D

hotel management got tip...lols
Post Fri Jun 12, 2009 6:50 am 
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