Tax and Beer … Office Memo … $500 Beer Money

A rookie in our office sent me this beer memo. My response follows;

Funny funny story that must have been written by Karl Rove “GW’s Brain” ….. GW the President that everyone wanted as their drinking buddy. (it was actually written or at least reported to be written by a very very very 12x successful life insurance agent)* please sign below

The problem with the story is that they lived in a country that was in the midst of two terrible wars that were started to make money for the richest beer drinkers and assured the re-election of their leader “the protector of the rich and the beer companies” Then they sold the top two brewers to foreign companies but that’s another drinking story.
Traditionally beer taxes are raised during wars and the cost of beer usually triples to pay for the war debt ……. but nooooooooo; beer taxes were dropped for everybody because free beer is a great way to get re-elected. Why not send every beer drinker $500 that would be cool.
The National Debt was at record highs because of two major wars. Before the 2 wars the National Surplus was at an all time high.
The 1st four drinkers had sons that were fighting the war to pay for their college debts and health care. 6,000+  sons and daughters didn’t return. Another 25,000 came back with severe mental and physical problems.

The tenth beer drinker hid all his money in foreign countries and refuses to buy beer for anybody. The tenth person nor any member of their immediate family served in war time.
It’s not a simple story. In short …. the poor are getting poorer the rich are in hiding. They often profit the most in down turns of the economy and especially in time of war.
There are few drinkers economically insulated to allow the status quo. One more hiccup and we will all be in a slow boat to China.
J. Robert Roemer

Innovation and Strategic Growth Consultant

—–Original Message—–From:  Staff Sent: Monday, January 24, 2011 2:35 PMTo: Robert Subject: The Tax System – Explained with Beer

I find this pretty interesting…
The Tax System – Explained With Beer
> Suppose that every day, ten men go out for beer and the bill for all > ten comesto $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 (100% savings).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 discovered something important. They didn’t have enough money between all of them for even half of the bill!
And that, boys and girls, journalists and college professors, 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.

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