First we address what is the purpose of taxes. The obvious answer is that we use it to fund the government and provide service for tax payers. There are some out there that believe taxes can also serve a purpose of redistributing wealth. There are some people that speak clearly and often about taking money from certain very wealthy individuals. Others looks at idea of taxing the very wealthy as a method to compensate for an unfair tax system. We move the discussion toward different tax structures such as the fact that stock investments are taxed at a lower rate than regular income (capital gains tax). Does the company and the economy benefit by the lower tax rate? We also spend a bit of time talking about tax brackets and how a very high tax rate doesn’t always coincide with low tax revenue. In the last few minutes we talk about the disincentive of high taxes toward earning money.
Link to the YouTube video.
