All posts by Gin Finger

Beer Can Help Explain Our Tax System

c>log

  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 everyday 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.
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 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 all discovered something very 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 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.

Related c>log Article
Beer In Space

 
 Dirque du Soleil
 He’s from the past, so he knows the future...
 dirque@erichatheway.com

Let Beer Explain The Tax System

c>log

  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.
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 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 all discovered
something very 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 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.

Related c>log Article
Beer In Space

Top 20 Party Schools For 2008-2009

c>log

You’ve got just a few weeks left to decide where to enroll for your college education – a very important decision. But, all work and no play makes a student very dull. We all know that. So, here is a list of twenty universities where you can study (?) and play a little as well. The Princeton Review (not affiliated with Princeton University) recently conducted a survey of 120,000 college students which averaged 325 students per campus in a sample of 368 schools across the United States. Happy hunting! And, cheers!

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  2008-2009 TOP 20 PARTY SCHOOLS
 1 University of Florida (Gainesville, Florida)
 2 University of Mississippi (University, Mississippi)
 3 Penn State University (University Park, Pennsylvania)
 4 West Virginia University (Morgantown, West Virginia)
 5 Ohio University (Athens, Ohio)
 6 Randolph-Macon College (Ashland, Virginia)
 7 University of Georgia (Athens, Georgia)
 8 University of Texas (Austin, Texas)
 9 University of California-Santa Barbara (Santa Barbara, California)
10 Florida State University (Tallahassee, Florida)
11 University of New Hampshire (Durham, New Hampshire)
12 University of Iowa (Iowa City, Iowa)
13 University of Colorado (Boulder, Colorado)
14 Indiana University (Bloomington, Indiana)
15 Tulane University (New Orleans, Louisiana)
16 University of Illinois at Urbana-Champaign (Urbana, Illinois)
17 Arizona State University (Tempe, Arizona)
18 University of Tennessee (Knoxville, Tennessee)
19 University of Alabama (Tuscaloosa, Alabama)
20 Loyola University-New Orleans (New Orleans, Louisiana)
  Source: Princeton Review

 – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –  Clip & Save  – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

You’ll need to dress the part when you get there…
From our new Collegiate Collection, the three best-known party schools in the world.

“There’s a time and a place for everything, and it’s called college.”

 
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