Question

1.       The phrase ‘tax rate’ is at least three ways ambiguous. There’s the rate on paper...

1.       The phrase ‘tax rate’ is at least three ways ambiguous. There’s the rate on paper (before deductions), the effective rate (amount paid as a percentage of profits), and total amount paid as a percentage of GDP. Watch this video (http://www.youtube.com/watch?v=fj10f7v1xaU) and reconstruct at least one of the arguments presented. Then watch this one (http://www.youtube.com/watch?v=yXzapM9useA) and say whether Buffet (the guy in the second video) gives a criticism of the argument you found in the first video, or a different argument. If he gives a criticism, say whether it’s of a premise or the form. If he gives a different argument, reconstruct it.  

Homework Answers

Answer #1

In the 1st video it is explained that why the U.S. corporate taxes should be eliminated? The reason being when corporate taxes are levied the companies or big cats don't pay the taxes instead they are a cost to the company and passed on to the shareholders or customer who then are actually double taxed.

But that would actually reduce the revenue of government to a larger extent so the better option would be to give the credit of corporate taxes paid to the shareholders.

Yes the guy in the first video criticised the first video as that would eliminate government's revenue also.

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