Raising Taxes on the Rich

A friend sent this along this AM—I have seen it before but we should be reminded—–often! PS Saw Atlas Shrugged II last evening—go see it! Awesome–better yet, read the book!

Something to ponder………

Suppose that every day, ten men go out for a 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 $1.00
  • The sixth would pay $3.00
  • The seventh would pay $7.00
  • The eighth would pay $12.00
  • The ninth would pay $18.00
  • The tenth man (the richest) would pay $59.00

So that’s what they decided to do. The men drank in the bar every day and seemed quite happy with 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 $20.00.  He said, “Drinks for the ten men now cost just $80.00>

The group still wanted to pay their bill the way we pay our taxes.  As a result,

  • The first four men were unaffected. They would still drink for free.
  • The other six men – the paying customers —  They divided the $ 20.00 savings by ($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.

Since this was not working, 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!

The result:

  • 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 drink for free. But once outside the restaurant, the men began to compare their savings.

“I only got a dollar out of the $20 savings!“ declared the sixth man. He pointed to the tenth man, “but he got $10!”

“Yeah, that’s right, shouted the seventh man. “why should he get $10 back when I got only two dollars? The wealthy get all the breaks!”

“Wait a minute,” yelled the first four men in union. “ 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.

Not to mention the decreased tax revenue from the “working” class because there will be few of them working!

For those who understand, no explanation is needed.

For those who do not understand, no explanation is possible!  PLEASE PASS THIS ON!

— Author unknown.


One Response to “Raising Taxes on the Rich”
  1. This Tax issue you shared, to coin a phrase, Its The Tip Of The Ice Burg…
    Taxes will be raised against all and all items and companies…I even heard in TV News That companies may see up to 39.2% in Tax….then the Health Care Bill Company Tax….and it is a Tax …
    Just watch and see…..
    The Tea Party must unite..

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