How the Tax System Works – in Beer

A bit of tax fun (not words which usually go that well together)

I came across this tax analogy from Toby Morris.

It takes the example of a group of people going out for a beer, and distributing the bill according to their means in life – so far so good, some obviously pay more than others, and some pay nothing at all as they are unable to.

A reduction comes along, and everyone pays less, some still pay nothing at all, but everyone’s bill is reduced.

The problem arises when people start comparing how much their percentage amounts to – 10% saving to one person is very much different to a 10% saving to the other.

They turn on the chap who had the biggest financial saving (yet had still paid the most all along), and even those who had paid nothing complain about the fact that someone had more of a discount.

The end of the story – the chap who paid the most every week, doesn’t show up the week after – leaving the bigger burden with everyone else.

Putting this into the human context, by continually comparing your position in life and wealth to others, whilst you will usually find yourself better off than some, you will also start to become envious of others. Envy leads to contempt, and then that in turn leads us into a very unhappy place indeed.

If you can be further along your path today than you were yesterday, that is all that matters. The only person to compare yourself to, is who you were yesterday.

The whole article is well worth a read, agree with it or not, ,it is a great analogy …

Together we can bring some Serenity to your life


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