THE UK (USA) TAX SYSTEM EXPLAINED IN BEER

(from a US standpoint, remember that only half the population pays income taxes …)

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 realised 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"

"Yes, that's right," exclaimed the fifth man
.
"I only saved £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, boys and girls, journalists and government ministers, is how our tax system works.

The people who already pay the highest taxes will naturally get the most benefit from a tax reduction.

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.
David R. Kamerschen, Ph.D.Professor of Economics.
For those who understand, no explanation is needed.
For those who do not understand, no explanation is possible

More Madrid

Continuing our exploration of Madrid …

The Palacio Real de Madrid (The Royal Palace of Madrid) is the official residence of the Spanish Royal Family in the city of Madrid, but it is only used for state ceremonies. King Juan Carlos and the Royal Family do not reside in the palace, choosing instead the more modest Palacio de la Zarzuela on the outskirts of Madrid. The palace is owned by the Spanish State and administered by the Patrimonio Nacional, a public agency of the Ministry of the Presidency. The palace is located on Calle de Bailén (Bailén Street), in the Western part of downtown Madrid, East of the Manzanares River, and is accessible from the Ópera metro station. The palace is partially open to public, except when it is being used for official business.

In Spanish it is sometimes incorrectly called "Palacio de Oriente" by confusion with the "Plaza de Oriente", the square which is on the East (Oriental) side of the palace.

The palace is on the site of a 9th-century fortress, called mayrit, constructed as an outpost by Muhammad I of Córdoba and inherited after 1036 by the independent Moorish Taifa of Toledo. After Madrid fell to Alfonso VI of Castile in 1085, the edifice was only rarely used by the kings of Castile. In 1329, King Alfonso XI of Castile convoked the cortes of Madrid for the first time. Philip II moved his court to Madrid in 1561.

The old Alcázar ("Castle") was built on the location in the 16th century. It burned down on December 24, 1734; King Philip V ordered a new palace built on the same location. Construction spanned the years 1738 to 1755^[2] and followed a Berniniesque design by Filippo Juvarra and Giovanni Battista Tiepolo in cooperation with Ventura Rodríguez, Francesco Sabatini, and Martín Sarmiento. The new palace was occupied by Charles III in 1764.

The last monarch who lived continuously in the palace was Alfonso XIII, although Manuel Azaña, president of the Second Republic, also inhabited on it, making him the last head of state to do so. During that period the palace was known as "Palacio Nacional". There is still a room next to the Real Capilla, which is known by the name "Office of Azaña".

The palace has 135,000 square metres (1,450,000 sq ft) of floorspace and contains 2800 rooms.^{[3] [4]}It is the largest palace in Europe by floor area. The interior of the palace is notable for its wealth of art, in regards to the use of all kinds of fine materials in its construction and the decoration of its rooms with artwork of all kinds, including paintings by artists such as Caravaggio, Velázquez and Francisco de Goya and frescoes by Corrado Giaquinto, Giovanni Battista Tiepolo and Anton Raphael Mengs. Other collections of great historical and artistic importance that are preserved in the building are the Royal Armoury, Porcelain, Watches, Furniture and Silverware.

The Museo del Prado is the main Spanish national art museum, located in central Madrid. It features one of the world's finest collections of European art, from the 12th century to the early 19th century, based on the former Spanish Royal Collection, and unquestionably the best single collection of Spanish art. Founded as a museum of paintings and sculpture, it also contains important collections of other types of works. A new, recently opened wing enlarged the display area by about 400 paintings, and it is currently used mainly for temporary expositions. El Prado is one of the most visited sites in the world, and it is considered to be among the greatest museums of art. The large numbers of works by Velázquez and Francisco de Goya (the artist more extensively represented in the collection), Titian, Rubens and Bosch are among the highlights of the collection.

The collection currently comprises around 7,600 paintings, 1,000 sculptures, 4,800 prints and 8,200 drawings, in addition to a large number of other works of art and historic documents. By 2012 the Museum will be displaying about 1300 works in the main buildings, while around 3,100 works are on temporary loan to various museums and official institutions. The remainder are in storage.^[3]

The best-known work on display at the museum is Las Meninas by Velázquez. Velázquez not only provided the Prado with his own works, but his keen eye and sensibility was also responsible for bringing much of the museum's fine collection of Italian masters to Spain.

The Buen Retiro Park (Jardines del Buen Retiro or Parque del Buen Retiro, literally "Gardens" or "Park of the Pleasant Retreat," or simply El Retiro) is the one of the largest parks of the city of Madrid, Spain. The park belonged to the Spanish Monarchy until the late 19th century, when it became a public park.

The Buen Retiro Park is a large and popular 1.4 km² (350 acres) park at the edge of the city center, very close to the Puerta de Alcalá and not far from the Prado Museum. A magnificent park, filled with beautiful sculpture and monuments, galleries, a peaceful lake and host to a variety of events, it is one of Madrid's premier attractions. The park is entirely surrounded by the present-day city.