Institut de Recherches Économiques et Fiscales

IREF Europe - Institut de Recherches Économiques et Fiscales

Pour la liberté économique
et la concurrence fiscale


IREF - Institut de Recherches Économiques et Fiscales
Pour la liberté économique et la concurrence fiscale
https://fr.irefeurope.org/382

Some funny stories about taxation

Tyrannosaurus debt

Tax Time Spoof ...

What will they tax next ? This video - campaigning against Britain’s record and wasteful burden of tax - is the first of 18DoughtyStreet.com’s weekly political adverts.

How politicians perceive tax matters - see the video realized by the Center for Freedom and Prosperity Foundation

What does exactly means tax competition ? See the video realized by the Center for Freedom and Prosperity Foundation

Who says that nobody wants to pay taxes ? If you follow that link, you will find that many honest citizens would love to pay more to the State :

www.letuspaytaxes.com ...

How the tax system actually works ? A bright explanation by anonimous author.

Let’s put tax cuts in terms everyone can understand.

Suppose that every

day, ten men go out for dinner. 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 $7.

* The eighth $12.

* The ninth $18.

* The tenth man (the richest) would pay $59.

So, that’s what they decided to do. The ten men ate

dinner in the restaurant

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 meal by $20."

So, now dinner for the ten only cost $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 eat for free.

But what about the other six, the paying customers ?

How could they divvy up

the $20 windfall so that everyone would get his

’fair share’ ?

The six men 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 eat their meal.

So, the restaurant 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 paid $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

eat 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 me !"

"That’s 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. 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

dinner, so the nine sat down

and ate 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 at the table anymore. There are

lots of good

restaurants in Europe and the Caribbean.

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