Saturday, September 20, 2008

Taxation 101

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.

Of course.
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