Who gets tax breaks?

- As goverments around the world make income tax policy…there's a tension between two opposing factors:…Keeping tax rates as low as possible…while using appropriate tax breaks to…encourage or discourage certain behaviors.…- Tax rates I understand.…Tax brackets, average tax rates, marginal tax rates,…we've talked about all those things, but tax breaks?…What's a tax break?…- A tax break is a provision in the income tax rules…that permits a taxpayer to legally pay less income tax…under certain circumstances.…

- What circumstances?…Can I take advantage of these tax breaks?…- Oh trust me, you're already taking advantage…of lots of tax breaks.…- No way. Like what?…- Do you have a 401k retirement savings plan at work?…- Yes I do, same as you.…- Do you have to pay income tax on the income…that you put into your 401k plan contributions each year?…- Well, no, not until I take it out after I retire.…- Well, there you go.…Your 401k plan is an example of a tax break.…To encourage US taxpayers to save for their own retirement…