Progressive Taxation

Learn more about progressive tax rates and what the alternatives are! Prof. Lederman and Prof. Miranda Fleischer explain what progressive taxation is and discuss the policy issues raised by progressive, regressive, and proportional taxation. Topics covered include a "flat tax," a "zero bracket," declining marginal utility of money, and demogrants (such as the Universal Basic Income idea). The video includes several straightforward numerical examples.

This video is great for use in conjunction with an Income Tax or Tax Policy course. It touches on vertical equity, benefits theory, and ability to pay. For more on those topics or tax policy generally, check out the Break Into Tax video "The Three Tax Policy Principles Unlocked,"    • The 3 Tax Policy Principles Unlocked  .

CONTENTS OF THIS VIDEO:
00:00 - Introductions
00:11 - Overview of Progressivity & Vertical Equity
01:30 - Vertical Equity as a Tax Policy Concept
01:50 - Proportional (Flat) Taxation
02:00 - A Zero Bracket
02:22 - Zero Bracket Example
03:01 - Regressive Taxation
03:52 - Poll Tax/Head Tax Example
04:25 - Multiple Tax Rates
06:00 - Lumpy vs. Smooth Earnings
06:19 - Marriage Penalties & Bonuses
06:44 - Is A Flat Rate the Default?
08:01 - Benefits Theory vs. Ability To Pay
09:14 - Declining Marginal Utility of Money
09:56 - D.M.U. & the Head Tax
10:49 - What Is Equal Sacrifice?
11:42 - Happiness Studies
12:23 - Income Inequality
13:09 - Redistribution With Flat Rates
14:02 - Progressivity of Tax & Transfer Systems
15:12 - Social Benefits of Paying Taxes
16:44 - Demogrants
18:30 - Wrap-Up
18:45 - Tax Policy Teaser

Break Into Tax thanks Emily Cauble for comments on a draft of this video and Nickolas Cole for the white outlines of the images in the thumbnail. Nothing from Break Into Tax is legal or tax advice.

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