Or you could say the model is very, very, very sensitive to that assumption.

Easy!

The opposition party put forward a bill to reduce income tax.

Tax officials are zeroing in on income tax evasion.

It's a vicious circle.

An income tax is levied on any income that exceeds deductions.

At the till, we are all equals.

The income from this source is tax free.

We pay an income tax at varying rates according to the size of income.

This income tax saving from interest deduction, this is assuming that at that marginal tax rate, you can deduct the property tax and the interest on the debt.

The IRS might consider that to be income

Poorer households were to be paid a net payment by the state.

This tax is not paid by whoever brings the Latte Macchiato, but by whoever drinks it.

If it's 30 , that means a 100 deduction will save you 30.

And so how much would be spent on taxes?

In Japan, the payroll tax is usually withheld from the monthly salary.

A special tax is imposed on very high incomes.

The global news is even better.

Income tax, on the other hand, pretends as if income were the real fruit of my labor because my income is what I bring back home.

Donations to philanthropic programs are tax exempt.

A man of wealth has to pay a lot of income tax.

But there are also taxes in the price, that can't be seen, and that arise during the value adding chain.

The income tax rate increases in proportion as your salary rises.

The income tax rate increases in proportion to the salary increase.

Japan is rather different though.

Just the income tax, for example.

That's it.

This is the reality of the welfare state today.

look at income distribution.

Now what about the U.S. government?

Gotta take you out, kid.

You have?

More unemployment results in less tax revenue through income tax.

And enough is being produced.

Wages contain income tax, costs for fringe benefits and social costs.

I have reached my limits.

Recursion limit

Okay, enough already.

I've reached my limit, do you hear?

My arms are killing me.

But in fact, both shares are paid by the company from the money which, as I mentioned before, comes from the customers.

The government decided to impose a special tax on very high incomes.

The most obvious solution is to take from those who earn the most.

Those who can afford it, can reduce their income before it is taxed so that an income tax becomes ineffective.

And that's one of the limitations of these kinds of observational studies.