The Importance of Income Taxes in the 1970s

The US tax code treats earned income differently than it does capital gains income, which is basically income from the sales of investment properties or other kinds of investments. And under the internal revenue code, those are subject to a lower rate of taxation than the income tax for earned income. The flip side of this though is, so we're talking about taxes as a relay to the welfare state,. I mean, that affects the working class, middle class, but the tax system also has benefits for the very rich.