In the parable of the 'Tax collector and the Pharisee, Jesus tells the story of two men who go to the temple to pray. The Pharisee proudly thanks God that he is not like other sinners, boasting about his good deals. The Tax collector, on the other hand, humbly asks God for mercy, acknowledging his sinfulness. Jesus concludes that the humble tax collector is justified before God, highlighting the importance of humility over self-righteousness.