Don’t Understand The Way the U.S. Tax System Works?

Simple Explanation from a University of Georgia Economics Professor

Beer Drinkers Will Easily Understand

Do your eyes glaze over thinking about taxes? X-box more important than tax talk?

This is the simplest explanation of how the U.S. tax system works. Beer drinkers and who pays the freight in the United States. From an economics professor at the University of Georgia.Never again be the odd man out in a tax system debate. Now you can sound like a tax expert to your buddies down at the bar.

Our Tax System

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.
Read rest of story:

How Things Work: Using Beer Drinkers to Illustrate the U.S. Tax System

Sources:

How Things Work: Using Beer Drinkers to Illustrate the U.S. Tax System

Mondoreb blogs at Death By 1000 Papercuts. Interested readers can e-mail him at
mondoreb@gmail.com.

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