How our tax system works …
Suppose that every day, the same 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.
...until one day, the owner threw them a curve...
JAE over at DE continues this great lesson in graduated income tax insanity.
But what's the solution?
A flat rate 10% income tax.