Wednesday, November 26, 2008

Simple Explanation of our Tax System

This was sent to me today. A pretty good explanation of the tax system that we have. I always get a little irritated when people get huffy about "tax breaks for the rich".

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.
Click through and read the whole article where he extends the example to include what happens when we make tax breaks.

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