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How UK Tax system works (simplified!)
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JMC
 


Member Since: 25 Feb 2006
Location: Aberdeen-Angus. Where the Bull* comes from!
Posts: 6417

Scotland 
How UK Tax system works (simplified!)

Great story here that sums up how the tax system in the UK works :

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.

So, that's what they decided to do.

The ten men drank in the bar 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 beers by £20. Drinks for the ten 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 the fifth man and the sixth man would each end up being paid to drink his beer.

So, the bar 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 pay £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 drink for free, but once outside the restaurant, the men began to compare their savings.

"I only got a pound 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 pound, too. It's unfair that he got TEN times more than I!"

"That's true!!" shouted the seventh man. "Why should he get £10 back when I got only two? 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 drinks, so the nine sat down and had beers without him. But when it came time to pay the bill, they discovered something very 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 anymore. In fact, they might start drinking overseas.

This also explains why a few of the folks on here drink a lot in North Africa! Laughing
 The older I get, the more I realise that people confuse wrinkles for wisdom Smile
Founder member of Club FFRRV
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Post #45952627th Apr 2009 1:41 pm
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NoDo$h
 


Member Since: 02 May 2006
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http://www.disco3.co.uk/forum/topic21090.html?highlight=exploits

But it's worth repeating Laughing
 I know it's not considered "kind" to say no these days, but no. Just no, ok? And if it's not ok, still no.  
Post #45953127th Apr 2009 1:46 pm
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NHR
 


Member Since: 13 Dec 2007
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Excellent - has Gordon Brown seen it Laughing
  
Post #45953427th Apr 2009 1:55 pm
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CG
 


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Would he change anything if he did ?
 
"I know that you believe that you understood what you think I said, but I am not sure you realize that what you read is not what I meant" 
 
Post #45953727th Apr 2009 2:02 pm
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JMC
 


Member Since: 25 Feb 2006
Location: Aberdeen-Angus. Where the Bull* comes from!
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Scotland 

NoDo$h wrote:
http://www.disco3.co.uk/forum/topic21090.html?highlight=exploits

But it's worth repeating Laughing


Embarassed Embarassed Embarassed

Problem with driving a FFRR is that the D3 forum gets a bit less attention than it used to............ Whistle
 The older I get, the more I realise that people confuse wrinkles for wisdom Smile
Founder member of Club FFRRV
Club Orange, Mint or Fruit
Club Walnut Sniffers
 
 
Post #45954527th Apr 2009 2:35 pm
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Hassle
 


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NHR wrote:
Excellent - has Gordon Brown seen it Laughing


Why are you going to beat him up and hope he goes elsewhere Question
  
Post #45956427th Apr 2009 3:15 pm
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Dom Harvey
Lord of the Four Fingers 


Member Since: 15 Apr 2005
Location: Dorset
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Hassle wrote:


Why are you going to beat him up and hope he goes elsewhere Question


We should be so lucky Evil or Very Mad
 2004 Discovery 3 - gone
2006 Discovery 3 - gone
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2007 Discovery 3 XS - gone
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Post #45958027th Apr 2009 3:47 pm
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stapldm
 


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JMC wrote:
Problem with driving a FFRR is that the D3 forum gets a bit less attention than it used to............ Whistle


Is that other forum taking that much of your time? I imagined you all sitting there like an Eskimo fishing over a snowhole waiting for hours on end for that flutter of that tiny feather to say a post had been made... Whistle Laughing Wink
 Dr. Ian Malcolm:
"Yeah, but your scientists were so preoccupied with whether or not they could, they didn't stop to think if they should."
Transgenic tomato anyone? 
 
Post #45958427th Apr 2009 3:58 pm
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Berlin Warrior
 


Member Since: 29 Nov 2007
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CG wrote:
Would he change anything if he did ?


Price of beer would go up..........
 Knowledge & Reason - the arch enemy of faith

MY2008, Java Black TDV6 HSE, Alpaca with straight grain Wood, 19" alloys, fully loaded with all the toys Smile

Discovery 3, you know it makes sense. 
 
Post #45958927th Apr 2009 4:02 pm
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JMC
 


Member Since: 25 Feb 2006
Location: Aberdeen-Angus. Where the Bull* comes from!
Posts: 6417

Scotland 

stapldm wrote:
Is that other forum taking that much of your time?

I wish Rolling Eyes

I just don't post here so much as I feel I'm here out of your collective sympathy rather than my divine right........... Big Cry Whistle
 The older I get, the more I realise that people confuse wrinkles for wisdom Smile
Founder member of Club FFRRV
Club Orange, Mint or Fruit
Club Walnut Sniffers
 
 
Post #45964827th Apr 2009 5:57 pm
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NoDo$h
 


Member Since: 02 May 2006
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Ukraine 

C'mon, you know we love you really. splitter
 I know it's not considered "kind" to say no these days, but no. Just no, ok? And if it's not ok, still no.  
Post #45965427th Apr 2009 6:02 pm
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SJR
 


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JMC

Your welcome here because as an acknowledged petrolhead you have probably found out more about the D3 that you owned than most others, and can therefore make a posiitve contribution to the discussions Bow down Thumbs Up

And because we don't know of anyone else with a FFRR(V) to take the mickey out of Wink Whistle or be jealous of Big Cry
 I believe that every human has a finite number of heart-beats. I don't intend to waste any of mine running around doing exercises.
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Post #45965627th Apr 2009 6:04 pm
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