Video Resource: Do Taxes Affect the Distribution of Income in the US?

Yes, yes, I know that your taxes are a distant memory at this point, but I thought this 3 minute video (hat tip to Big Picture Blog) using Legos to show how taxes impact each of the five quintiles of income distribution in the US.  Spoiler alert:  Not much.  Other useful concept explored within:  difference between pre-tax and after-tax income levels.  Ask your students to calculate the average tax rate for each of the five quintiles; they will need to write down the figures as they watch the video.

The math involved to calculate this is:  

  1. Pre-tax income minus Post-tax income = Taxes paid.
  2. Taxes Paid divided by Pre-tax income = Tax Rate (on percentage basis)