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.

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 not only would the first four men still be drinking for free but the fifth  and sixth man would each end up being paid to drink his beer.

So, the bar owner suggested that it would be fairer to reduce each man’s bill by a higher percentage. They decided 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 (a100% saving).
The sixth man now paid £2 instead of £3 (a 33% saving).
The seventh man now paid £5 instead of £7 (a 28% saving).
The eighth man now paid £9 instead of £12 (a 25% saving).
The ninth man now paid £14 instead of £18 (a 22% saving).
And the tenth man now paid £49 instead of £59 (a 16% saving).
Each of the last six was better off than before with the first four continuing to drink for free.

But, once outside the bar, the men began to compare their savings. “I only got £1 out of the £20 saving,” 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 £1 too. It’s unfair that he got ten times more benefit than me!”

“That’s true!” shouted the seventh man. “Why should he get £10 back, when I only got £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 week 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 to pay 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 might 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

A billion is a difficult number to comprehend, but one advertising agency did a good job of putting that figure into some perspective in one of its releases.

A.
A billion seconds ago it was 1959.

B.
A billion minutes ago Jesus was alive.

C.
A billion hours ago our ancestors were living in the Stone Age.

D.
A billion days ago no-one walked on the earth on two feet.

E.
A billion Pounds ago was only 13 hours and 12 minutes, at the rate our government is spending it.

Stamp Duty
Tobacco Tax
Corporate Income Tax
Income Tax
Council Tax
Unemployment Tax
Fishing License Tax
Petrol/Diesel Tax
Inheritance Tax
(tax on top of tax)
Alcohol Tax
V.A.T.
Marriage License Tax
Property Tax
Service charge taxes
Social Security Tax
Vehicle License Registration Tax
Vehicle Sales Tax
Workers Compensation Tax

STILL THINK THIS IS FUNNY?

Not one of these taxes existed 100 years ago…
and our nation was one of the most prosperous in the world.

We had absolutely no national debt…
we had the largest middle class in the world…
and Mum stayed home to raise the kids.

‘Gordon Brown should go’ shout the Sun newspaper. Why? There is no new Prime Minister to take his place YET!

To lead Parliament you need a working majority and no one has this YET!

If the coalition talks work then fine, but until they come to a deal Gordon is still Prime Minister.

Just because you don’t like this arrangement doesn’t make it constitutionally or morally wrong. It wont last for long, get over it.

One of the things that has amazed me in this election is the lack of attack on George Osborne. The economy is the number one issue and therefore the prospective chancellors should be of great importance. Darling has done the job, right or wrong at least he has an idea of what to expect. Cable is an economist and knows his stuff. But George is only there because he is a mate of Dave’s, and you people will probably vote that way.

I will probably vote Lib Dem, just because Nick Clegg is NOT Gordon Brown or David Cameron. No other reason needed.