Wednesday, February 3, 2010

How taxes are paid

An analogy of how taxes are paid using a group
going to diner.

10 men go out for dinner and the bill comes to $100.

If the bill was paid the way taxes are paid it would be. The first 4 people would pay nothing. The 5th would pay $1, 6th $3, 7th $5, 8th $9, 9th $18, 10th $59.

They like it so they eat there every day. After a while the owners tells them that they are such good customers that he is going to cut the bill $20. After the change the bill would be paid like this.

The first 4 still would pay nothing now the 5th also pays nothing, 6th would pay $2, 7th $5, 8th $9, 9th $14, 10th $50.

The others complain that the rich get the biggest break and they are upset. The rich guy got ticked off and left mad.

The next day they others went to eat, they couldn't even eat because they only had $30 between the 9 of them.


This is something I heard from Walter Williams.

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