[wtbhotia]

Suppose that every day, ten men go out for beer and the bill for all ten comes to $100.00.
If they paid their bill the way we pay our taxes, it would go something like this:
1. The first four men (the poorest) would pay nothing.
2. The fifth would pay $1.
3. The sixth would pay $3.
4. The seventh would pay $7.
5. The eighth would pay $12.
6. The ninth would pay $18.
7. 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:
1. The fifth man, like the first four, now paid nothing (100% savings).
2. The sixth now paid $2 instead of $3 (33% savings)
3. The seventh now pay $5 instead of $7 (28% savings)
4. The eighth now paid $9 instead of $12 (25% savings)
5. The ninth now paid $14 instead of $18 (22% savings)
6. 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 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 man and beat him up.
The next night the tenth man didn't show up for drinks, so the nine men 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 benefits 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
For those who understand, no explanation is needed.
For those who do not understand, no explanation is possible

[nfornarayana]

Hey got the concept really good one,,

[chimo]

Originally Posted by wtbhotia

Suppose that every day, ten men go out for beer and the bill for all ten comes to $100.00.
If they paid their bill the way we pay our taxes, it would go something like this:
1. The first four men (the poorest) would pay nothing.
2. The fifth would pay $1.
3. The sixth would pay $3.
4. The seventh would pay $7.
5. The eighth would pay $12.
6. The ninth would pay $18.
7. The tenth man (the richest) would pay $59.

You forgot one key point: The ninth and tenth men would drink 85% of the beer! The 8 bottom men will have to fight for the remaining 15% of the beer.
Who Rules America: Wealth, Income, and Power

[psjylife]

This looks very complicated for such an easy pb?

The guys pay according to a certain percentage defined.

When the price change, the percentage does not change?

So, just get 80% of what they pay and you get :
1 2,5 5,5 9,5 14 47,5

You don't change the principles, you just change the income...

Can I pretend to a phd now

[chimo]

A quick goolge of Dr Kamerschen gave this:
"How Tax Cuts Work" by David R Kamerschen -REFUTED - The Real Way Tax Work Removing the Internet Garbage | Viral Grape Vine

[Claire ex-ax]

SOCIALISM: You have two cows. The State takes one and gives it to someone else.

PURE SOCIALISM: You have two cows. The government takes them and puts them in a barn with everyone else's cows. You have to take care of all the cows. The State gives you as much milk as you need.

BUREAUCRATIC SOCIALISM: You have two cows. The government takes them and puts them in a barn with everyone else's cows. They are cared for by ex-chicken farmers. You have to take care of the chickens the government took from the chicken farmers. The State gives you as much milk and as many eggs as the regulations say you should need.

COMMUNISM: You have two cows. The State takes both of them and gives you milk.

PURE COMMUNISM: You have two cows. Your neighbours help you to take care of them and you all share the milk.

FASCISM: You have two cows. The State takes both of them and sells you the milk.

BUREAUCRACY: You have two cows. The State takes both of them, kills one and pours the milk down the drain.

BRITISH BUREAUCRACY: You have two cows. At first the government regulates what you can feed them and when you can milk them. Then it pays you not to milk them. After that it takes both, shoots one, milks the other and pours the milk down the drain. Then it requires you to fill out forms accounting for the missing cows.

CAPITALISM: You have two cows. You sell one and buy a bull.

HONG KONG CAPITALISM: You have two cows. You sell three of them to your publicly listed company, using letters of credit opened by your brother-in-law at the bank, then execute a debt/equity swap with associated general offer so that you get all four cows back, with a tax deduction for keeping five cows. The milk rights of six cows are transferred via a Panamanian intermediary to a Cayman Islands company secretly owned by the majority shareholder, who sells the rights to all seven cows' milk back to the listed company. The annual report says that the company owns eight cows, with an option on one more. Meanwhile, you kill the two cows because the Feng Shui is bad.

MILITARIANISM: You have two cows. The government takes both and drafts you.

PURE DEMOCRACY: You have two cows. Your neighbours decide who gets the milk.

REPRESENTATIVE DEMOCRACY: You have two cows. Your neighbours pick someone to tell you who gets the milk.

AMERICAN DEMOCRACY: The government promises to give you two cows if you vote for it. After the election, the president is impeached for speculating in cow futures. The press dubs the affair "Cowgate".

SINGAPORE DEMOCRACY: You have two cows. The government fines you for keeping two unlicensed animals in an apartment.

BRITISH DEMOCRACY: You have two cows. You feed them sheep's brains and they go mad. The government doesn't do anything.

ENVIRONMENTALISM: You have two cows. The government bans you from milking or killing them.

TOTALITARIANISM: You have two cows. The government takes them and denies they ever existed. Milk is banned.

POLITICAL CORRECTNESS: You are associated with (the concept of "ownership" is a symbol of the phallo-centric, war-mongering, intolerant past) two differently-aged (but no less valuable to society) bovines of non-specified gender.

EUROPEAN FEDERALISM: You have two cows which cost too much money to care for because everybody is buying milk imported from a cheaper East European country and would never pay the fortune you'd have to ask for your cows' milk. So you apply for financial aid from the European Union to subsidise your cows and are granted enough subsidies. You then sell your milk at the former elevated price to some government-owned distributor which then dumps your milk onto the market at East European prices to make Europe competitive. You spend the money you got as a subsidy on two new cows and then go on a demonstration to Brussels complaining that the European farm-policy is going drive you out of your job.

[psjylife]

So true

Originally Posted by Claire ex-ax

EUROPEAN FEDERALISM: You have two cows which cost too much money to care for because everybody is buying milk imported from a cheaper East European country and would never pay the fortune you'd have to ask for your cows' milk. So you apply for financial aid from the European Union to subsidise your cows and are granted enough subsidies. You then sell your milk at the former elevated price to some government-owned distributor which then dumps your milk onto the market at East European prices to make Europe competitive. You spend the money you got as a subsidy on two new cows and then go on a demonstration to Brussels complaining that the European farm-policy is going drive you out of your job.

[Boris]

"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 benefits 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. "

And this comment is relevant to HK in what way ?

Beer buddies 9 and 10 in HK already assess their worth based on Bermuda , Cayman and BVI corporations which allows them to be calculated as buddies 5 and 6. So I see no point in its relevance here OR is it believed that all things must be US centric ?

[hullexile]

Drinkers 1-4 use bar 7-11

Drinkers 5-6 go out but only in happy hour

Drinkers 7-9 go out and stay out

Drinker 10 drinks in his club (membership paid by the company) and would not dream of mixing with the riff-raff (his drinks are on expenses anyway).

[wtbhotia]

[QUOTE=Boris;282327And this comment is relevant to HK in what way ?[/QUOTE]

Not relevant, its a joke to relieve strees. Thats why i put it in Anti Productivity (Humor, vidoes and other junk to reduce corporate productivity). The more you read my crap the less work you are doing.