In this video we cover taxes and tax revenue and subsidies on goods. We discuss commodity taxes, including who pays the tax and lost gains from trade, also called deadweight loss. We’ll take a look at the tax wedge and apply what we learn to the example of Social Security taxes.

Microeconomics Course: https://mru.io/ja1

Next video: https://mru.io/xpi

Help us caption & translate this video! http://amara.org/v/GCs2/

00:00 Intro
00:35 Three important ideas about commodity taxation
02:00 Who pays the tax? Tax "on" sellers
03:54 Tax "on" buyers
06:50 The tax "wedge"
08:38 Tax wedge example – Social Security Taxes