Discussing :: This is a good way to look at tax

People who grizzle about tax breaks for the rich should read this.Tax system explained in beer . 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... read full article

#1

This is a good way to look at tax

What this doesn't tell us is...the first man was actually the richest in the group but set up a trust to protect his assets. When the free drinks ended he hopped in his Porsche and followed the 10th man out of town.

#2

This is a good way to look at tax

What you forget is we all pay the same tax rate. Yes only as your income goes up the next dollar you earm may be taxed at a higher rate. That is why we have a stepped tax system.No one pays the highest rate as all the income under the highest threshold is taxed less, so on average they are paying less than that rate. And we all know never sue a lawyer, they never have any money, its all in trusts.


Wow. What are you on about Wombat? Maybe you should have a quick word with your accountant before the IRD comes knocking!

#3

This is a good way to look at tax

I like this example. However, just like everyone else I tend to agree that it is highly unlikely that the tenth man is paying the most. Or maybe that is the point of the article because I'm definitely NOT the tenth man and wish that I was.

#4

This is a good way to look at tax

We all pay the same tax rate??????

#5

This is a good way to look at tax

end of the day unless your willing to make an effort to be rich don't whine about being poor!

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