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Video: Video: 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 Vox.com is a news website that helps you cut through the noise and understand what's really driving the events in the headlines. Check out http://www.vox.com. Become a member of the Vox Video Lab! http://bit.ly/video-lab Watch our full video catalog: http://goo.gl/IZONyE Follow Vox on Facebook: http://goo.gl/U2g06o Or Twitter: http://goo.gl/XFrZ5H