JUST A FEW PINTS CAN EXPLAIN HOW THE TAX SYSTEM WORKS

Although this example is set in jolly old England … the principle applies today …

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.

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