Ten men go out for beer: A lesson in the economics of taxation.
Spotted this, of all places, on Polish Business News. It is a simple parable that uses beer to illustrate how taxes in the U.S. are distributed and the effects of tax breaks.
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.
Then the proprietor reduces their beer bill by $20, and the article goes on to explain why the richest man got (and deserves) the largest windfall.
