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The Tax System Explained in Beer
Posted by: Jennifer ()
Date: December 27, 2017 02:29PM

Let's suppose that every day, ten men go out for beer and the bill for all ten comes to $100. If they pay their bill the way we pay our taxes, it would go something like this:

The first four men (who are the poorest) would pay nothing
The fifth man would pay $1
The sixth man would pay $3
The seventh man would pay $7
The eighth man would pay $12
The ninth man would pay $18
The tenth man (who is the richest) would pay $59

And that’s what they decided to do.

So the ten men drank in the bar every day and were quite happy with the arrangement, until one day the owner threw them a curve ball.

"Because 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 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 ? How could they divide the $20 windfall so that everyone would get his fair share?

The bar owner suggested that it would be 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 was better off than before. And the first four continued to drink for free. But, once outside the bar, the men began to compare their savings.

“I only got a dollar 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 dollar 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 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. This new tax 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 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 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 may not show up anymore. In fact, they might start drinking overseas, where the atmosphere is somewhat friendlier.

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Re: The Tax System Explained in Beer
Posted by: riverhousebill ()
Date: December 28, 2017 11:16PM

First off, the tenth guy is an alcoholic

You are of-course assuming that rich people pay 59% of all taxes.




Drinker #1 heads offshore (skips town) so he pays nothing.
Drinker #2 accepts "beer options" in lieu of drinks and elects not to exercise them unless the price is right - then he actually gets paid to drink beer.
Drinker #3 cut a special deal with the owner. In exchange for herding the party into the restaurant, he gets a kickback of $10. He's paying $9 so cheerfully because he can do this deal any number of times and be guaranteed a 10% profit.
Drinkers #4-#9 are getting screwed, but they'll fight to the death to protect #1-#3 because they think they're protected by the same rules.






 
Actually drinkers 1 to 9 are "paying" "taxes" to the Chinese as their currency depreciates by half over a 6 year period... and all the while, drinker 10 is paying in euros because he can afford to pay someone to make sure that he's not stupid with his money.



Edited 1 time(s). Last edit at 12/28/2017 11:20PM by riverhousebill.

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Re: The Tax System Explained in Beer
Posted by: riverhousebill ()
Date: December 28, 2017 11:28PM

Trump Drunk

Trump White House Tries to Justify Tax Cuts for the Rich With Beer-Drinking Analogy Only Your 'Fox-Watching MAGA Uncle' Could Love
"How many drunk White House staffers did it take to come up with this Sarah Huckabee Sanders alcohol analogy?"

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Re: The Tax System Explained in Beer
Posted by: Jennifer ()
Date: December 29, 2017 09:39PM

Rhb, this and all you and those guys you copy and pasted comments from about Paying Taxes, is just displaying your (meaning the Libs) Envy and Hate of The Rich. You guys (meaning The Libs) are "The Haters" not the other side. All you dream about is "Sticking it to The Rich".

And speaking of hypocrisy, "The Rich" Libs who espouse Sticking-it-to-The Rich are hypocrites who got rich off Capitalism, which they purport to hate, not "Socialism" which they purport to love.

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Re: The Tax System Explained in Beer
Posted by: Jennifer ()
Date: December 29, 2017 09:53PM

So if you liked the Beer Analogy so much, you'll love this one -


The Fable of the Ant and the Grasshopper…the PC Version

TRADITIONAL VERSION

The ant works hard in the withering heat all summer long, building his house and laying up supplies for the winter.

The grasshopper thinks the ant is a fool and laughs and dances and plays the summer away.

Come winter, the ant is warm and well fed.

The grasshopper has no food or shelter, so he dies out in the cold.

MORAL OF THE STORY: Be responsible for yourself!

——————————————————————————

Democrat/Liberal VERSION

The ant works hard in the withering heat and the rain all summer long, building his house and laying up supplies for the winter.

The grasshopper thinks the ant is a fool and laughs and dances and plays the summer away.

Come winter, the shivering grasshopper calls a press conference and demands to know why the ant should be allowed to be warm and well fed while he is cold and starving.

CBS, NBC, PBS, CNN, and ABC show up to provide pictures of the shivering grasshopper next to a video of the ant in his comfortable home with a table filled with food.

America is stunned by the sharp contrast.

How can this be, that in a country of such wealth, this poor grasshopper is allowed to suffer so?

Kermit the Frog appears on Oprah with the grasshopper and everybody cries when they sing, ‘It’s Not Easy Being Green.’

Black Lives Matter stages a demonstration in front of the ant’s house where the news stations film the group singing, “We shall overcome.” Then Rev. Jesse Jackson has the group kneel down to pray to God for the grasshopper’s sake.
President Obama condemns the ant and blames capitalism for the grasshopper’s plight.

Nancy Pelosi and Chuck Schumer exclaim in an interview that the ant has gotten rich off the back of the grasshopper, and both call for an immediate tax hike on the ant to make him pay his fair share.

Finally, the EEOC drafts the Economic Equity & Anti-Grasshopper Act retroactive to the beginning of the summer.

The ant is fined for failing to hire a proportionate number of green bugs and, having nothing left to pay his retroactive taxes, his home is confiscated by the Government Green Czar and given to the grasshopper.

The story ends as we see the grasshopper and his free-loading friends finishing up the last bits of the ant’s food while the government house he is in, which, as you recall, just happens to be the ant’s old house, crumbles around them because the grasshopper doesn’t maintain it.

The ant has disappeared in the snow, never to be seen again.

The grasshopper is found dead in a drug related incident, and the house, now abandoned, is taken over by a gang of spiders who terrorize the ramshackle, once prosperous and once peaceful, neighborhood.

The entire Nation collapses bringing the rest of the free world with it.

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Re: The Tax System Explained in Beer
Posted by: riverhousebill ()
Date: December 29, 2017 10:12PM

I'm not interested in reading some right wing double speak Jennifer,
But I would like to know the Link to your post.

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Re: The Tax System Explained in Beer
Posted by: Jennifer ()
Date: December 29, 2017 10:15PM

Dream on, sweet cakes, I'm not telling you..

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Re: The Tax System Explained in Beer
Posted by: Jennifer ()
Date: December 29, 2017 10:19PM

Quote
Jennifer
Rhb, this and all you and those guys you copy and pasted comments from about Paying Taxes, is just displaying your (meaning the Libs) Envy and Hate of The Rich. You guys (meaning The Libs) are "The Haters" not the other side. All you dream about is "Sticking it to The Rich".


" Capitalism is freedom while socialism is slavery. Socialists often use envy to trick people into becoming angry at successful people instead of the ones who are really taking away their freedom."

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Re: The Tax System Explained in Beer
Posted by: Jennifer ()
Date: December 29, 2017 10:41PM

5 Reasons Socialism Is Inferior To Capitalism

[townhall.com]

"The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries." -- Winston Churchill

Saying that capitalism is better than socialism is like saying that winning a million dollars is better than being in a high impact car crash. In other words, if you have an open mind, a good grasp on human nature and economics, and a passing knowledge of world history, there's absolutely no question that capitalism is superior to socialism.

Unfortunately, this lesson has been lost on a lot of people because our school systems have become so mediocre, there are no pure capitalist and socialist systems, and there are a lot of people who promote socialism for reasons that have nothing to do with economics. Is it surprising, for example, that politicians prefer an economic system that concentrates power in their hands as opposed to a system that makes them less relevant? Would anyone be shocked to find out that there are people who like the idea of making money based on whom they know and where they put their campaign contributions as opposed to slugging it out in the free market?

So with all that in mind, it is worth explaining, once again, why capitalism is absolutely, undeniably, unquestionably superior to socialism.

1) Capitalism produces faster growth than socialism. Ever heard someone say, "A rising tide lifts all boats?" It's very true. Why do you think most poor people in this country have refrigerators, microwaves, and televisions that we think of as basic necessities even though those items are considered to be luxuries in much of the world? For all the Occupy Wall Street talk about the "1%," if you make $34,000 a year after taxes, you are part of the worldwide 1% -- and Americans make up half of the total 1%ers on the planet. You can thank the growth created by capitalism for that. Even nations like China have figured this out and have seen their economies lift off by moving towards capitalism. If China keeps at it long enough, eventually the hundreds of millions of Chinese who're still living in huts and shacks will be able to have the sort of lives and technology even the American poor take for granted.

2) Capitalism works in concert with human nature while socialism works against it. "From each according to his ability, to each according to his needs." That famous quotation from Karl Marx is at the heart of communism and socialism. It runs completely contrary to human nature. As a general rule, people will work hard for themselves and their families, but it's considered an imposition so large that only God can ask them to pay other people’s bills without resentment. Put another way, the vast majority of human beings care far more about what they're going to eat for lunch today than they do about whether someone they've never met can pay his rent. (PS: And most of the people who claim to be part of that exceptional few are lying).

Capitalism, on the other hand, relies on a philosophy best described by Adam Smith.

It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own interest.

Because capitalism works hand in hand with human nature and asks people to serve themselves as they serve others, it creates a much more productive society that gets the maximum out of its citizenry.

3) Capitalism rewards merit. Socialism rewards mediocrity. Who gets rewarded in a capitalist society? People who can produce. If you come up with a hot new product, give people a service they want, or entertain them better than they can find elsewhere, they will pay you handsomely to do it. Some people complain about the people who get rewarded in a free market. Why should Peyton Manning make so much more than a school teacher? Why should a bank CEO make so much more than a teller at the same bank? Capitalism offers a simple solution to that problem: If the market rewards NFL quarterbacks and CEOs more than teachers and tellers, you can become a quarterback or a CEO -- if you're capable. If you can't and you don't like what you get paid as a teacher or a teller, the good news is that you're free to move on to somewhere that better rewards your talents. In this fashion, capitalism encourages people to make the best use of their talents.

Conversely, socialism rewards people for failure. Can't find a job? Great, here's your welfare and your food stamps. You haven't worked in a year and a half? Fantastic, we'll keep incentivizing you not to work by extending your unemployment insurance. Are you a mediocrity who is so unskilled and unambitious that you'll stay at the lowest paying job you can find long-term instead of learning from it and moving on? No problem! We'll raise the minimum wage for you.

If you incentivize success like capitalism does, you get more growth, prosperity, and success. If you incentivize failure like socialism does, you get more sloth, poverty, and failure.

4) Capitalism is freedom while socialism is slavery. Socialists often use envy to trick people into becoming angry at successful people instead of the ones who are really taking away their freedom.

Bill Gates, the richest person on the face of the earth — what can Bill Gates make you do? That is, during the 70s and 80s, the era of busing, could he have made you send your kid to a school that you did not want him to go to? Can Bill Gates deny you the right to dig holes on your property or put up a little shed on your property? He cannot do any of those things, but a lowly town clerk can…destroy your life just by denying you a permit to add an addition to your house. Bill Gates can’t stop you from doing that. I think that politicians and those that want to control our lives get us to focus away from the power that government has over our lives and cast our attention to rich people. -- Walter Williams

For socialists to gain authority over your life, your own power has to shrink. The more the socialists take, the less of their own money the people get to spend. Capitalism reacts to the citizenry, while socialism tries to control and enslave the citizens. Capitalism will give you what you want for the right price, while socialism will give you what it thinks is best for you and tell you that you better like it!

5) The marketplace does a much better job of allocating resources than socialism's central planning. As Ronald Reagan noted, "Millions of individuals making their own decisions in the marketplace will always allocate resources better than any centralized government planning process." How could it be otherwise? Is there any one person on the planet who truly understands all the ins-and-outs of making a television, an airplane, a computer, and a vending machine? No, of course not. So, how can some bureaucrat in a central location, who may have no practical experience with business at all, make wise decisions that impact tens of millions of products and hundreds of millions of consumers? They can't. That’s why some people have to wait more than six months for hip operations under socialized medicine in Britain. It's also why people used to wait in long lines to buy poor quality toilet paper and toothpaste in the Soviet Union.

Conversely, under capitalism, the market reacts almost like a living thing and allocates resources where people want to spend their money. You may think that people aren't using their money "as they should." I might even agree with you in some cases, but the only thing the market "cares" about is finding a way to make a profit giving people what they want. Complain all you want about capitalism, but you won't be waiting for hours to get toothpaste and toilet paper while you do it.

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Re: The Tax System Explained in Beer
Posted by: riverhousebill ()
Date: December 29, 2017 10:41PM

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The Alley News Stand
Politics
Sarah H. Sanders Bizarre and Plain Stupid Tax Analogy at Another Loony Press Briefing 10/30/17
Discussion in 'Politics' started by tout et rien, Oct 30, 2017.


Oct 30, 2017
#1

tout et rien
All and Nothing

13,204

885

Aug 12, 2007
Ratings:
+8,499 / 81 / -34

( Alley)


It was just the dumbest thing.

Press Briefing with Press Secretary Sarah Sanders

It doesn't embed but this is a video of her press briefing today. You must skip to 1:04 maker otherwise you will just see a blue card saying it start shortly.

***********I grabbed the youtube version***********




She uses some dumb analogy to try to justify the tax cuts for the rich. It only showed she has no idea how taxes work. The reporters just stared at her.

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Re: The Tax System Explained in Beer
Posted by: Jennifer ()
Date: December 29, 2017 10:50PM

Ok, I get it now. Here's the link that Sarah Sanders Huckabee gave The Beer Analogy in a WH Press Briefing.

[www.rawstory.com]

But that WH Sarah Sanders Huckabee briefing was on October 30th and I just posted this today, although I had seen it like the middle of December. So the timing is nothing.

First time I looked at her closely, she's an Attractive Conservative Woman. No wonder your Lib women probably hate her - lol

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