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