The Parable of the 10 Men in a Bar" or "The Taxation Parable
Ten friends go to a bar for drinks every day, and their total bill comes to $100. If they paid according to a progressive tax system, the payments would break down as follows:
The Wealth Navigator
The Wealth Navigator
The first 4 (poorest): Pay nothing.
The 5th: Pays $1.
The 6th: Pays $3.
The 7th: Pays $7.
The 8th: Pays $12.
The 9th: Pays $18.
The 10th (richest): Pays $59.
The Twist
The 10 men are happy with this arrangement, until one day the bartender (representing the government) offers a reduction of $20. The new bill is $80.
The Conflict
The group decides to divide the $20 savings in a way that mimics their tax structure.
The first four still pay nothing.
However, the 5th, 6th, 7th, 8th, and 9th man now feel they are getting almost nothing back from the savings, while the richest man (the 10th) is saving a massive amount in comparison.
The poor friends become outraged, leading them to beat up the richest friend because they perceive his benefit to be unjust.
The Lesson
The following week, the richest man does not return. When the remaining nine friends go to pay their bill, they find they do not have enough money combined to pay even half of the total bill.
The story is used to argue that if you tax the wealthiest too heavily, they may leave, leaving the rest of society struggling to cover the costs of public services.