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From ABBA to Led Zeppelin: using music to teach economics
From ABBA to Led Zeppelin: using music to teach economics

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This weblog offers a variety of song lyrics that instructors of economics may find useful in teaching economics. Each post includes a selection from the song's lyrics and a brief assignment for students. This site has been accepted for publication in the Journal of Economic Education.

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The Taxman - The Beatles

JEL:        

Let me tell you how it will be;
There's one for you, nineteen for me.
'Cause I’m the taxman,
Yeah, I’m the taxman.

Should five per cent appear too small,
Be thankful I don't take it all.
'Cause I’m the taxman,
Yeah, I’m the taxman.

Click to Listen

Assignment:

What is the implied rate of taxation in this Beatles song? Does this seem high to you? For comparison, what was the top marginal tax rate in the U.S. federal income tax code in 1960? In 1980? What incentives do you think are created when tax rates are this high? Why might lower tax rates be better from the standpoint of generating more government revenue?

By: Robert Lawson
03.27.07 · Permalink
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