Suppose that every day, ten co workers 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 co workers drank in the bar every day and seemed quite happy with the agreement, until one day, the owner threw gave them a new proposition
“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 co workers were not affected. They would still drink for free. But what about the other six co workers ? How could they divide the $20 SAVINGS so that everyone would get his or her fair share?
The bar owner suggested that it would be most 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 co workers was better off than before. Remember the first four continued to drink for free. But, once outside the bar, the co workers began to compare their savings with one another.
“I only got a dollar out of the $20 saving,” declared the sixth co worker. He pointed to the tenth co worker,”but he got $10!”
“Yeah, that’s right,” exclaimed the fifth co worker. “I only saved a dollar too. It’s unfair that he got ten times more benefit than me!”
“That’s true!” shouted the seventh co worker. “Why should he get $10 back, when I got only $2? The wealthy get all the breaks!”
“Wait a minute,” yelled the first four co workers in unison, “we didn’t get anything at all. This new tax system exploits the poor!” We get treated the worst !
The nine co workers surrounded the tenth and verbally abused him so badly he got very upset and vowed to never again to see them and even quit his job
The next night the tenth co worker OBVIOUSLY 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, men and women, liberal and conservative, rich and poor and The intelligent and the economically illiterate, is how our tax system ACTUALLY works. The people who already pay the highest taxes will naturally get the most benefit from a tax reduction. HOWEVER they are paying the Lion share. the top 1% of earners pay 40% of all Federal Income taxes. Now they don’t mind paying their fair share and the 50% who pay no federal income taxes SHARE as well. But don’t verbally abuse them and tell them somehow they are the PROBLEM.Or that everyone works hard and is smart. Tax them too much, attack them for being wealthy, and disrespect them and they just may not show up anymore or may give more money to charities and lower their tax burden even further. In fact, they might start drinking overseas, where the atmosphere is somewhat friendlier.
Please share this on your wall and with your friends so they can understand how the economy they live in really works and who to vote for in 2012 election.