Taxation Systems

I found this very easy to understand analysis of the taxation, explained through a group buying beer!
Enjoy the reading… !

THE TAX SYSTEM EXPLAINED IN BEER…

Suppose that once a week, 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…
And the tenth man (the richest) would pay £59…
So, that’s what they decided to do…

The ten men drank in the bar every week and seemed quite happy with the arrangement until, one day, the owner caused them a little problem. “Since you are all such good customers,” he said, “I’m going to reduce the cost of your weekly beer by £20.” Drinks for the ten men would now cost just £80. 
 


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