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25 juillet 2023 - 17:33
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The 70% top tax rate, explained with potatoes
Congresswoman Alexandria Ocasio-Cortez called for a 70 percent top tax rate on the super rich.
Start by watching our explainer on the marginal tax rate: https://youtu.be/VJhsjUPDulw
While it might seem like a radical idea, it's actually based on an economic theory that tries to make everyone as well-off as possible.
How can we make all citizens as well-off as possible? That's the simple question behind something call "optimal tax theory." It starts from this idea that, to a rich person, one dollar is worth almost nothing. Take away the dollar and he'll be just as well off as he was before. But that dollar is worth a lot to poor people. So, if the government wants to optimize the well-being of its citizens, it should tax that money from the rich and give it to the poor. But at a certain point, we can't keep taxing the rich more. To find out why, watch this video.
https://www.vox.com/policy-and-politics/2019/1/4/18168431/alexandria-ocasio-cortez-70-percent
https://www.vox.com/policy-and-politics/2019/1/7/18171927/alexandria-ocasio-cortez-60-minutes-trump-racist
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