If you have a 10 year loan, you'd put 10 here.

Maintenance, same thing.

So basically Republicans who make more than 250,000 dollars a year don't want to be taxed.

The most obvious solution is to take from those who earn the most.

That assets, A for assets, is equal to

But we'll do a whole playlist on that.

They make you pay more in withholding just to help their cash flow out.

In this example that I did in the previous video, it was the pre tax return on asset.

And what is required is a combination of physical capital, institutional capital, human capital and security, of course, is critical, but so is information.

And then on the equity side, because we have no liability, so in this case assets will be equal to equity.

It should start to make a little bit of intuitive sense

liabilities plus equity.

We could do a series of videos on that.

In a world without leverage so if I didn't have all this

So this is just another visual representation that

less capital intensive that there's less money that's required

It doesn't sound like we borrowed money or anything.

A man of wealth has to pay a lot of income tax.

But let's say its assets are worth 1 million.

When legislators and others think about economic development, what they first of all think about are business tax incentives, property tax abatements, job creation tax credits, you know, there are a million of these programs all over the place.

The consumption tax is now 5 percent in Japan.

This money is for the year's assessment on the Saint Helen of the Blessed Shroud Orphanage in Calumet City, Illinois.

Capitalist country.

I'll do that in yellow.

And also you can deduct, actually, the property tax.

liabilities plus equity is equal to assets.

I use 100 gold pieces.

And then the equity is, essentially we would look at this formula.

Let's figure it out. It's equity.

One, what shares are share of

liabilities.

In return on equity, the numerator is the net income that we got, so it's 350,000.

like an equation, but it's assets is equal to liabilities plus equity.

Most Japanese opposed a tax increase.

Taxes consist of direct taxes and indirect ones.

Why has it been rising since the '70s?

So 26 billion of assets minus 23 billion of liabilities means that we have 3 billion of equity of shareholders' equity.

Good health is his capital.

So the only liability is this 5,000.

It's good for you.

That just comes out of the definition of what equity is.

And so liabilities plus equity is equal to assets.

I'll draw it a little bit bigger.

Don't you think that the taxes are too heavy in Japan?

So the actual effect ends up being 2,100.