Reply
 
Thread Tools Search this Thread
 
Old 07 December 2010, 16:19   #1
Member
 
Doug Stormforce's Avatar
 
Country: UK - England
Town: Southampton
Boat name: Yoda & Obi Wan
Make: Valiant 750 & XS600
Length: 7m +
Engine: 150, 115 HP
MMSI: Various
Join Date: May 2004
Posts: 1,031
Inland Revenue- explained simply

Not my own words but a very simple explanation i was emailed

The 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 ball.

"Since you are all such good customers," he said, ďI'm going to reduce the cost of your daily beer by £20". Drinks for the ten men would 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? 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 a higher percentage the poorer he was, to follow the principle of the tax system they had been using, and he proceeded to work out the amounts he suggested that each should now pay.

And so the fifth man, like the first four, now paid nothing (100% saving).

The sixth now paid £2 instead of £3 (33% saving).

The seventh now paid £5 instead of £7 (28% saving).

The eighth now paid £9 instead of £12 (25% saving).

The ninth now paid £14 instead of £18 (22% saving).

The tenth now paid £49 instead of £59 (16% saving).

Each of the six was better off than before. And the first four continued to drink for free. But, once outside the bar, the men began to compare their savings.

"I only got a pound out of the £20 saving," declared the sixth man.

He pointed to the tenth man, "but he got £10!"

"Yeah, thatís right," exclaimed the fifth man. "I only saved a pound too. Itís unfair that he got ten times more benefit than me!"

"Thatís true!" shouted the seventh man. "Why should he get £10 back, when I got only £2? The wealthy get all the breaks!"

"Wait a minute," yelled the first four men in unison, "we didn't get anything at all. This new tax 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 their 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 government ministers, is how our tax system works.

The people who already pay the highest taxes will naturally 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.

David R. Kamerschen, Ph.D.
Professor of Economics.

For those who understand, no explanation is needed.
For those who do not understand, no explanation is possible.
__________________

__________________
STORMFORCE COACHING
web - www.stormforce.biz
email - coaching@stormforce.biz
tel - 02380 231122
Doug Stormforce is offline   Reply With Quote
Old 07 December 2010, 16:45   #2
RIBnet supporter
 
Country: UK - England
Town: South Coast
Length: 7m +
Join Date: Apr 2008
Posts: 1,445
Very, very good ...
__________________
250kts is offline   Reply With Quote
Old 07 December 2010, 17:31   #3
RIBnet supporter
 
Erin's Avatar
 
Country: UK - Channel Islands
Town: A large rock
Boat name: La Frette
Make: Osprey Vipermax
Length: 6m +
Engine: 200 Suzzy
Join Date: May 2004
Posts: 2,830
Could do with having that printed in our local paper for our politicians to see. Very apt in the current climate here.
Erin is offline   Reply With Quote
Old 08 December 2010, 15:17   #4
Administrator
 
John Kennett's Avatar
 
Country: UK - England
Town: Brighton
Length: 3m +
Join Date: May 2000
Posts: 6,829
I think it's more likely that the tenth man actually sits there drinking loads of beer that he bought cheaply whilst abroad, happily enjoying all the comforts of the pub but making no contribution at all!
__________________
John Kennett is online now   Reply With Quote
Old 08 December 2010, 17:44   #5
Member
 
Country: UK - England
Town: Brum
Boat name: UTV
Make: zodiac FR
Length: 3m +
Engine: 2 stroke 15hp
MMSI: 999
Join Date: May 2003
Posts: 379
Or the tenth man owns the brewery (the banks) which most of the tax revenue goes to support.
__________________
Big waves, small boat ;)
tinker is offline   Reply With Quote
Old 08 December 2010, 17:58   #6
Member
 
Bigmuz7's Avatar
 
Country: UK - Scotland
Town: Glasgow
Boat name: stramash
Make: Tornado
Length: 5m +
Engine: Etec 90
Join Date: Feb 2006
Posts: 5,068
Quote:
Originally Posted by tinker View Post
Or the tenth man owns the brewery (the banks) which most of the tax revenue goes to support.
Correct ..
__________________
Bigmuz7 is offline   Reply With Quote
Old 09 December 2010, 03:42   #7
Member
 
biffer's Avatar
 
Country: UK - England
Town: swanwick/hamble
Boat name: stormchaser
Make: custom rib
Length: 8m +
Engine: inboard/diesel
Join Date: Aug 2007
Posts: 3,848
Quote:
Originally Posted by John Kennett View Post
I think it's more likely that the tenth man actually sits there drinking loads of beer that he bought cheaply whilst abroad, happily enjoying all the comforts of the pub but making no contribution at all!

with no mates
__________________
biffer is offline   Reply With Quote
Old 09 December 2010, 05:02   #8
Member
 
Paul Cannell's Avatar
 
Country: UK - England
Town: Kings Lynn
Boat name: Blow 'N' Away
Length: 7m +
MMSI: 235085136
Join Date: Jun 2009
Posts: 474
Hmm! The revenue send me a bill every year, although I don't remember employing them to do any work for me!
__________________
Paul Cannell is offline   Reply With Quote
Old 09 December 2010, 06:27   #9
Member
 
Country: UK - Scotland
Town: Ayrshire
Boat name: Raven
Make: Ribcraft
Length: 5m +
Engine: 150 suzuki
MMSI: 235040525
Join Date: Aug 2006
Posts: 653
The bloke with the readies would no doubt be organising it because........ he'd be the one hanging on to the reciept at the end of the night to claim as a business expense....no tax at all.
__________________
.
IBWET is offline   Reply With Quote
Old 09 December 2010, 11:50   #10
Member
 
Country: USA
Town: Oakland CA
Length: 3m +
Join Date: Feb 2005
Posts: 6,653
The new simplified US IRS form:

>>>>>>>>>>>>

How much did you make last year?

Send it in.

<<<<<<<<<<<<


jky
__________________

__________________
jyasaki is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off





Copyright 2002- Social Knowledge, LLC All Rights Reserved.

All times are GMT -5. The time now is 01:50.


Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.