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 (a 100% 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’s how it works.
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.
For those who understand, no explanation is needed.
For those who do not understand, no explanation is possible.
@KevinSladeAOFP Couldn’t agree more. Too many starting players have a losing mentality - been calling Kilman out since we signed him. Apart from maybe 2/3 players the standard of the team is so so poor and unfortunately it’s not a quick fix of just changing manager.
Leaving a job, starting a business? That is a bloody difficult decision. You're putting it all on the line, with absolutely no guarantee of any success.
It goes wrong, who's to blame? You. Nobody else. There is no safety net. And that's exactly how it should be.
You work hard, you succeed - you're rewarded. If it doesn't come off, you're not. Fair enough.
Wealth and success are seen as dirty things. NO. We want high-minded individuals operating with each other, with as little Government intervention as possible. That is what any society should strive towards.
But I really do want to stress this point to any politicians reading. It is NOT easy, and it is NOT straightforward.
They don't understand, because they haven't done it.
A big majority of MPs have had an easy career.
No sleepless nights about paying staff, unpaid invoices, fighting for contracts and so much more. It is stressful. It is really bloody stressful. I know, I have been there more times than I care to remember.
What's the politician career path? University, work for an MP, become an MP, shadow minister, minister. Maybe a sprinkling of union work or at some nonsense think tank. It means NOTHING.
I get so depressed thinking about it all. We are governed by RANK amateurs. A five year old with a lemonade stand has more business experience than most of the cabinet.
Reeves, Reynolds, Lammy, Rayner, Miliband? I'd fancy my chances with the toddler - at least they're sincere.
Investing in talented people is a passion of mine. Often it works, sometimes it doesn't. But I love it.
I would not give a PENNY to ANY of this lot - their combined experience, or what we believe of it, couldn't run a corner shop.
The men and women who take risks, generate wealth, create jobs deserve our respect - they are what drives the economy forward.
This Labour Government needs to have a long hard think about what they are inflicting on these people. If they carry on down this path, there won't be a private sector left to tax.
My message to small businesses is this - keep going. It is worth it, but it will be a very challenging few years.
I wish you all well.
A decent piece in the Express regarding fears for the impending cost shock about to hit UK #pubs.
Thanks to @JournoZak for fairly airing @CampaignforPubs position.
@GOVUK needs to grasp that our sector is powered by small businesses on often thin margins.
https://t.co/KR894YWDOx
@henrywinter Of course the players want him to stay?! He’s picking them. Ask Grealish & Chilwell if they want him to stay?! He’s not the man and blagged his way to the final based on player quality… Anyone with any football knowledge can see that - we move on to the next chapter 🏆