Bar Bill explantion of taxes
Discussion
not sure if this is the thing you mean
Three diners on finishing their meal are presented with a bill for £30, which they agree to split between them. They each gave the waiter £10, not knowing that the waiter had rechecked the bill and found that it was only £25. The waiter realised that the £5 change would not divide equally between the three men, and they were unaware of the mistake, so he returned to the table, apologised, and gave each diner £1, keeping the other £2 for himself.
The diners have all paid £9 each for their meal - totalling £27.
The waiter has kept £2 in his pocket - totalling £29.
If the men originally paid £30, where has the missing pound gone?
Three diners on finishing their meal are presented with a bill for £30, which they agree to split between them. They each gave the waiter £10, not knowing that the waiter had rechecked the bill and found that it was only £25. The waiter realised that the £5 change would not divide equally between the three men, and they were unaware of the mistake, so he returned to the table, apologised, and gave each diner £1, keeping the other £2 for himself.
The diners have all paid £9 each for their meal - totalling £27.
The waiter has kept £2 in his pocket - totalling £29.
If the men originally paid £30, where has the missing pound gone?
Edit - Found it...
Ten men go out for beer. 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. He said, "Since you are all such good customers, I'm going to reduce the cost of your daily beer by $20. Drinks for the ten 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 $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 everybody'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 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 pay $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," 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 I!"
"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 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 any more. In fact, they might start drinking overseas where the atmosphere is somewhat friendlier.
Ten men go out for beer. 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. He said, "Since you are all such good customers, I'm going to reduce the cost of your daily beer by $20. Drinks for the ten 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 $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 everybody'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 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 pay $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," 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 I!"
"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 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 any more. In fact, they might start drinking overseas where the atmosphere is somewhat friendlier.
Edited by hyperblue on Tuesday 2nd February 23:13
hyperblue said:
I can't find it, but I know the one you mean 
My memory's a bit hazy, but basically it uses splitting the restaurant bill with the richest guy contributing the most as an example of why you shouldn't tax the rich so much that you force them to not contribute, as then everyone else then has to contribute more to make up the short fall.
Oh that does ring a bell actually, nothing to do with the first post - but that's what popped into my head!My memory's a bit hazy, but basically it uses splitting the restaurant bill with the richest guy contributing the most as an example of why you shouldn't tax the rich so much that you force them to not contribute, as then everyone else then has to contribute more to make up the short fall.
Our Tax System Explained: Bar Stool Economics
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. ‘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 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 $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 everybody’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 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 pay $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,’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 I got’
‘That’s true!!’ shouted the seventh man. ‘Why should he get $10 back when I got only two? 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 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, ladies and gentlemen, 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.
David R. Kamerschen, Ph.D.
Professor of Economics
University of Georgia
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. ‘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 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 $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 everybody’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 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 pay $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,’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 I got’
‘That’s true!!’ shouted the seventh man. ‘Why should he get $10 back when I got only two? 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 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, ladies and gentlemen, 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.
David R. Kamerschen, Ph.D.
Professor of Economics
University of Georgia
Edited by Ow on Tuesday 2nd February 23:13
You might enjoy this one as well then.
A Lesson on Socialism
An economics professor said he had never failed a single student before but had, once, failed an entire class. The class had insisted that socialism worked - and that no one would be poor and no one would be rich, a great equalizer for all, for society. The professor then said:
“OK, we will have an experiment in this class on socialism.”
He said that all grades would be averaged and everyone would receive the same grade so no one would fail and no one would receive an A. After the first test the grades were averaged and everyone was given a B. The students who studied hard were upset, and the students who studied little were happy. But, as the second test rolled around, the students who hadn't studied much for the first test had studied even less, and the ones who studied hard weren't motivated to study hard again, and they decided they wanted a free ride too; so they studied little.
The second Test average was a D! No one was happy. When the 3rd test rolled around the average was an F.
The scores never increased as bickering, blame, name calling all resulted in hard feelings and no one would study for anyone else. All failed … and the professor told them that the socialism they wanted would ultimately fail as they had, because the reward of success normally goes to those that work harder, but when government takes the reward away; few will try so no one will succeed.
A Lesson on Socialism
An economics professor said he had never failed a single student before but had, once, failed an entire class. The class had insisted that socialism worked - and that no one would be poor and no one would be rich, a great equalizer for all, for society. The professor then said:
“OK, we will have an experiment in this class on socialism.”
He said that all grades would be averaged and everyone would receive the same grade so no one would fail and no one would receive an A. After the first test the grades were averaged and everyone was given a B. The students who studied hard were upset, and the students who studied little were happy. But, as the second test rolled around, the students who hadn't studied much for the first test had studied even less, and the ones who studied hard weren't motivated to study hard again, and they decided they wanted a free ride too; so they studied little.
The second Test average was a D! No one was happy. When the 3rd test rolled around the average was an F.
The scores never increased as bickering, blame, name calling all resulted in hard feelings and no one would study for anyone else. All failed … and the professor told them that the socialism they wanted would ultimately fail as they had, because the reward of success normally goes to those that work harder, but when government takes the reward away; few will try so no one will succeed.
Ow said:
not sure if this is the thing you mean
Three diners on finishing their meal are presented with a bill for £30, which they agree to split between them. They each gave the waiter £10, not knowing that the waiter had rechecked the bill and found that it was only £25. The waiter realised that the £5 change would not divide equally between the three men, and they were unaware of the mistake, so he returned to the table, apologised, and gave each diner £1, keeping the other £2 for himself.
The diners have all paid £9 each for their meal - totalling £27.
The waiter has kept £2 in his pocket - totalling £29.
If the men originally paid £30, where has the missing pound gone?
Because the actual bill was £25, not £30. So thay actually only paid £8.33 each, and got a pound back. Meaning they paid a total of £28 for the meal and the waiter kept the £2.....Three diners on finishing their meal are presented with a bill for £30, which they agree to split between them. They each gave the waiter £10, not knowing that the waiter had rechecked the bill and found that it was only £25. The waiter realised that the £5 change would not divide equally between the three men, and they were unaware of the mistake, so he returned to the table, apologised, and gave each diner £1, keeping the other £2 for himself.
The diners have all paid £9 each for their meal - totalling £27.
The waiter has kept £2 in his pocket - totalling £29.
If the men originally paid £30, where has the missing pound gone?
Evangelion said:
You might enjoy this one as well then.
A Lesson on Socialism
An economics professor said he had never failed a single student before but had, once, failed an entire class. The class had insisted that socialism worked - and that no one would be poor and no one would be rich, a great equalizer for all, for society. The professor then said:
“OK, we will have an experiment in this class on socialism.”
He said that all grades would be averaged and everyone would receive the same grade so no one would fail and no one would receive an A. After the first test the grades were averaged and everyone was given a B. The students who studied hard were upset, and the students who studied little were happy. But, as the second test rolled around, the students who hadn't studied much for the first test had studied even less, and the ones who studied hard weren't motivated to study hard again, and they decided they wanted a free ride too; so they studied little.
The second Test average was a D! No one was happy. When the 3rd test rolled around the average was an F.
The scores never increased as bickering, blame, name calling all resulted in hard feelings and no one would study for anyone else. All failed … and the professor told them that the socialism they wanted would ultimately fail as they had, because the reward of success normally goes to those that work harder, but when government takes the reward away; few will try so no one will succeed.
That is very well put.A Lesson on Socialism
An economics professor said he had never failed a single student before but had, once, failed an entire class. The class had insisted that socialism worked - and that no one would be poor and no one would be rich, a great equalizer for all, for society. The professor then said:
“OK, we will have an experiment in this class on socialism.”
He said that all grades would be averaged and everyone would receive the same grade so no one would fail and no one would receive an A. After the first test the grades were averaged and everyone was given a B. The students who studied hard were upset, and the students who studied little were happy. But, as the second test rolled around, the students who hadn't studied much for the first test had studied even less, and the ones who studied hard weren't motivated to study hard again, and they decided they wanted a free ride too; so they studied little.
The second Test average was a D! No one was happy. When the 3rd test rolled around the average was an F.
The scores never increased as bickering, blame, name calling all resulted in hard feelings and no one would study for anyone else. All failed … and the professor told them that the socialism they wanted would ultimately fail as they had, because the reward of success normally goes to those that work harder, but when government takes the reward away; few will try so no one will succeed.
Evangelion said:
You might enjoy this one as well then.
A Lesson on Socialism
An economics professor said he had never failed a single student before but had, once, failed an entire class. The class had insisted that socialism worked - and that no one would be poor and no one would be rich, a great equalizer for all, for society. The professor then said:
“OK, we will have an experiment in this class on socialism.”
He said that all grades would be averaged and everyone would receive the same grade so no one would fail and no one would receive an A. After the first test the grades were averaged and everyone was given a B. The students who studied hard were upset, and the students who studied little were happy. But, as the second test rolled around, the students who hadn't studied much for the first test had studied even less, and the ones who studied hard weren't motivated to study hard again, and they decided they wanted a free ride too; so they studied little.
The second Test average was a D! No one was happy. When the 3rd test rolled around the average was an F.
The scores never increased as bickering, blame, name calling all resulted in hard feelings and no one would study for anyone else. All failed … and the professor told them that the socialism they wanted would ultimately fail as they had, because the reward of success normally goes to those that work harder, but when government takes the reward away; few will try so no one will succeed.
A Lesson on Socialism
An economics professor said he had never failed a single student before but had, once, failed an entire class. The class had insisted that socialism worked - and that no one would be poor and no one would be rich, a great equalizer for all, for society. The professor then said:
“OK, we will have an experiment in this class on socialism.”
He said that all grades would be averaged and everyone would receive the same grade so no one would fail and no one would receive an A. After the first test the grades were averaged and everyone was given a B. The students who studied hard were upset, and the students who studied little were happy. But, as the second test rolled around, the students who hadn't studied much for the first test had studied even less, and the ones who studied hard weren't motivated to study hard again, and they decided they wanted a free ride too; so they studied little.
The second Test average was a D! No one was happy. When the 3rd test rolled around the average was an F.
The scores never increased as bickering, blame, name calling all resulted in hard feelings and no one would study for anyone else. All failed … and the professor told them that the socialism they wanted would ultimately fail as they had, because the reward of success normally goes to those that work harder, but when government takes the reward away; few will try so no one will succeed.
Not seen that before...will remember it!
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