The 70% top tax rate, explained with potatoes

Описание: 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:    • How tax brackets actually work  

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.

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