How tax breaks help the rich
Vložit
- čas přidán 8. 10. 2017
- The US has a problem with income inequality. The current tax code makes it worse.
Correction: At 2:20, we say that the Glenstone Museum is only open for private tours. But, in fact, it’s free and open to the public for scheduled tours.
Subscribe to our channel! goo.gl/0bsAjO
Check out our full video catalog: goo.gl/IZONyE
Follow Vox on Twitter: goo.gl/XFrZ5H
Or on Facebook: goo.gl/U2g06o
Vox.com is a news website that helps you cut through the noise and understand what's really driving the events in the headlines. Check out www.vox.com to get up to speed on everything from Kurdistan to the Kim Kardashian app.
The gap between the rich and the poor in America looks more like developing countries than other Western nations. Trump and the GOP have proposed tax plans that will give massive tax breaks to the wealthy while it remains unclear if the middle class will get a tax benefit.
Deductions give a greater proportion of tax breaks to people with higher incomes. The same charitable contribution from two different incomes will benefit the higher wage earner, because deductions give tax breaks in proportion with tax brackets. Other countries have eliminated certain tax deductions in favor of tax credits. Credits give breaks in proportion to the amount you give, not the amount you owe.
There are two kinds of income in the US. We tax wage income at a higher rate than income earned in stocks and bonds. That means people who get their income from capital gains and stock market interest pay fewer taxes than the same income of someone who works for a paycheck.
2 houses and a yacht? I'm starting to think Steve makes more than 500k a year.
Depending where you could find houses cheap and depending on make/model a cheap yacht. Ex. In Arkansas I see houses that cost $120k all the time. That's 240k for both which leads over half left. Even if he gets a yacht that cost 1mil he could put a down payment if 100k and the rest towards insurance
Lol uncle make around that much and he doesn’t even have a yacht. But he has like 8 houses lol
Jacob Olivas Your uncle must live somewhere with cheap property value.... New Mexico?
Ladies Love the Moon Knight California
Jacob Olivas Northern or Eastern part?
I like to make my house into museum so I can make it tax deduction.
Go ahead. You just need to make billions and pay millions in taxes to write off your hundreds of thousands of nonprof earnings.
@Andrew OBrien I haven't stolen money from the middle and working classes, so I cannot afford the art for the museum.
"The every day museum " would be a possible name.
Private tours only.
@@nicedubs8163 they never understand that part do they? All they see are the write-offs. They don't see where the rich person is paying more in one year of taxes than they do in ten years.
Funny how none of this is learned in school.
BCs it’s not true
We don’t want you to know this. If you want to have your socks really knocked up, look up GRAT and CRAT
Mads Førgaard Poulsen
How?
So you think we should give the goverment the power to teach political issues in shcool
@@alexwhiting5881 it says tax breaks dork. If we can teach kids about money then there wouldn't be as many poor people. Of course it's till theory.
The funny thing is that americans keep talking about it, complaining about it, and doing nothing about it.
Its just funny
All we can do is wait for the elections, it’s not like we can do much about it my guy :/
@@jellybean3524 well its not like those matter either since they are manipulated, but good luck with that
Victor Popov so you complain about Americans doing nothing about their government even though you know they can really do anything due to manipulation in elections?
@@jellybean3524 You just ended that man career
@@jellybean3524 It's much easier to change yourself, become rich, and get all the tax benefits than it is to change an entire nation. The whole point of America is that ANYBODY can go from rags to riches if they are willing to do so and it's actually much easier than you think. Thousands of books about it if you're willing to read. 90% are not however so they complain about it and consider it out of their hands.
Just a thought.
"Tax laws are written by the rich, for the rich" Robert Kiyosaki rich dad poor dad
@Scott Derry not act but learn, it's a process but a good 1
@Scott Derry yep, can't be lazy in learning and growing.
love that book - don't you want to be rich? learn from it not resent it.
l yndor why should the naked pursuit of money be your only goal in life?
Exactly! *because they pay highest amount of the incomes to taxes*
Correction, New Zealand has a 33% tax refund for donations,regardless of your income
33% isnt that too much
Wait... so ya'll are giving them money for donating (sometimes to themselves)?
catbeara no it’s all lies
@@joshuanickle8187 It's not a lie. Steve donating 100$, can write off/deduct 39$ from his taxes, effectivley not paying his share of country budget but instead pocketing it.
That means someone else has to pay for it which is the Danises of the world.
eagle yes but he’s still 61 dollars worse off than if he hadn’t made the donation so he’s not pocketing anything, the reason he get more off is because he’s in a higher tax bracket therefore he pays more on the rest of his income anyway. This is a result of the progressive income tax system that America uses which is designed for those earning more to pay a greater percentage and they still do pay a greater percentage. It’s absurd to suggest that rich people abuse this system because they still lose 60 percent of what they paid anyway.
eagle It doesn’t make economical sense to donate money. Your missing the part where they actually do something good and donate to charities. If this was a "scheme" to get rich then they wouldn’t donate at all.
@@Bobo-jy5mg There a million financial and socioeconomical reasons to donate. Two of them are tax evasion and money laundering.
You can't do that when you live by the bills.
*Prove me otherwise. *
This is ridiculously frustrating. I have to work 3 jobs as a single adult supporting my mother. I end up paying every year out the wazoo. No words. 😪
Rebekah Kumar you work sooooo hard. Much much respect
Maybe learn a trade or a skill that is in more demand? People who work hard for little money are a problem. I commend your fight but there are other ways.
I do work a trade. I get it if people work harder they should get a tax break. However, I do work hard yet I still don’t get any breaks. Instead I get punished for making more money than I should. I think things like the tax credit should be level. I don’t mean that we all need to pay the same or I should get the higher bracket rate. I’m just saying there shouldn’t be loopholes for rich people just because they are I a different bracket. We are all working hard, middle class people should get fair treatment. That’s all I’m saying.
Rebekah Kumar Is your trade graphic design?
Haha don't lie to your self. If you are not happy w your life go find another 3 jobs and sleep 5 hours at night. Work,Work,Work and you'll be rich one day.
Dan just can't catch a break :c
We are all Dan
And Dan likely voted for Trump and his republican house and senate member.
La Volpe
Dan should kill Steve and take is money
Wear his face like a hat
Dan would've voted for Bernie
If we were all Steve we would hate this video
Make my fridge an "art museum" for my 3 year old brothers drawing lol
Me to! But I made my fridge an 'art museum' for myself.
Wait you can deduct money you lose from gambling, wth, that’s just encouraging ppl to gamble their life away
Utopia Light Only against the winnings. If you don’t win, no deductions.
@@Guitaroverkill Not entirely true. If you gamble your money in the stock market, forex, and so on, you can receive a deduction on your losses. I'm assuming it should be the same for organized gambling as well.
Nicholas Blackwell Is true. The stock market isn’t considered gambling. Although if you invest and have a loss you can write it off against the gains.
Ultimate Poor Tax: POWERBALL
This is one of the many half lies in the video. You can only deduct to the extent of your winnings
As a Canadian, it's entertaining learning about how dysfunctional the US "government" is.
I have Canadian friends who express similar concerns about how things are going in Canada. We seem to differ by degree only. What do you thing of the plan I posted above?
@@nthperson I am canada milk bag
Worry about your country we sometimes forget canada is our neighbor
@@Saulibarra1111 Canada is kinda like an attic of a house.
Glad to see you find our suffering and frustration entertaining :/
"America has a problem.." You can end the video there
Maybe if america could solve its own problems. Yeag
ArnoldsK A problem other countries have solved so we could also solve it
ArnoldsK America has 99 problems
@Arnoldsk You damn right brother
TheKiroshi that was a joke right? Good one
I got to build me an art museum.
or make art and sell it for 46 million dollars
ger.: Ist das Kunst oder kann das weg? - engl.: Is this art or can I throw it away?
Actually you can do better in my country, a lot of preachers register their country seat as charches so they pay no taxes for it.
Sweet Russia
Yes! I have the same Idea okrajoe!
or Maybe a cool yard sale .
CORRECTION: Gambling losses can only be used to offset gambling wins, and then only if you itemize your deductions (i.e. most of the time gambling wins are taxes, but losses can't be used to offset those wins).
This is why the poor are so easily swayed and conned. They eat up the "lower taxes" promise.
You are the poor.
@@johnlocke1977 the poor are financially illiterate which is why they blame the rich instead of learning how to manage money and make moves like they do.
@@steve-0g466 bro literally the rich class needs the working class so someone always has to be the odd one out, and if that's the problem then why don't we improve the public school system? Taxing the rich of course, so it will be more fair
@@steve-0g466 The rich are leeches, literally. The only thing they do is own something in which actual people work there and make money. No matter how much you educate yourself and are smart about it, if you aren’t born into a rich family, you won’t be rich.
Jeff Bezos doesn’t work and gets billions while Joe works all week at his best and gets not even a MILLIONTH of what Jeff gets
@@darkdragon5520 he worked
If you disagree with anything about this video, just look at 5:11
No matter what party affiliation you are, we all agree that you should reap the benefits of your work, and the wealthy CLEARLY aren't. That's why we are upset with tax cuts for the rich, they pay less, but end up earning more than the majority of the average taxpayer.
James Burgess you are underestimating the actual work it takes to run a buisness
James Burgess but they don’t pay less, Dan pays 15% while Steve pays 39%. A lot of top earners are business owners who also see tremendous amounts of money taken from them for taking the risk of going out to earn their own money
I call B.S on the people replying to this comment. That rate is for income. As a business owner you can have your car, and other expenses payed off as a business expense. Take a smaller sallary, invest the rest of the money you would make and end up paying less than your employees on taxes (as percentage)
Logan X Hebda Risk isnt labor, thats why we have investment.
James Burgess you take a look at 4:31 where it clearly shows that even though steve gets a higher tax deduction, he is still paying more taxes than dan.
The only time it is fair to give dan and steve the same deduction as dan, is if they paid the same tax.
Tax the rich more!!!
“Person suddenly become rich”
What tax problem?
John Forbes Yeah because raising their taxes means raising their competitors taxes as well. It’s easier for them to pay the tax than small business owners. Same reason they want a 15$ minimum wage, Walmart can handle it but the ma and pa shop can’t
@@LiverpoolReject if this is true, why are they only talking about it? The IRS allows you to make extra contributions... why don't they put their money where their mouth is and just voluntarily contribute what they think is fair?
You're using apostrophes improperly.
The electoral college sucks, what you made me president? I love electoral college
Yes! Just steal money because.... Duhhhhh they're richhhhhhh theyyyy haveeee moreeeee moneyyy thannnn meeeee!!!!!!!! Muhhhh nastyyyy richhhh peopleeeee
Moral of the story: get rich
No
"Moral"
AB Valencia if all people are rich ... then There is no rich ...
Just stop being poor
@@alecoloxa You can't once they're rich! They have all the wealth and it will be impossible for a poor person to get rich and this problem will continue. The poor will stay poor no matter how hard they try!!
Two words, FairTax! It gets rid of ALL loopholes. And when Steve buys his nice yacht, he gets taxed at a higher rate than when Dan buys good fishing boat! And if Dan buys it used he doesn't get taxed because it's already been taxed!
How it's "fair" if Steve is paying higher taxes than Dan for doing the same thing?
@@doriangray1935 it's not. I guess if you did 20 min of research you would probably agree with me, OR if you read words past the first 4 you might catch a glimpse of understanding. Under the fair tax you get to keep your whole paycheck and get taxed on the NEW good and services. Steve will get taxed exponentially more because he spends more than Dan. No more tax breaks, no more IRS. NO MORE INCOME TAXES. the 16th amendment would be abolished.
based
i need to find an income of 500k a year
SMALL BUSINESS OWNERS DONT EARN THAT . I DONT THINK MEDIUM BUSINESS OWNERS DO EITHER AFTER TAXES
work smart n hard
Ben Chesterman trust me a construction contractor makes around that yearly
It's some wealthy old man looking for young booty may not be 500k a year but if you play it right you can get at least 100k a year in gifts and college payed off
Become a minimalist and you'll be happier
I'm usually on board with Vox, but the argument is weak here. Higher incomes get a bigger tax break....because they are taxed at a much higher rate. In this example, Dan is going to pay about $1000 in taxes and get a $362 interest deduction. Steve is going to pay $140,000 in taxes and get a $960 interest deduction. Steve pays 140 times as much taxes as Dan. I'm not going to complain about his mortgage interest deduction.
i think you lost the point, yes he will pay more in taxes(obviously cause he is much richer) but he will get more interest deduction for the same purchase, while in theory interest deduction is put to help the poor buy houses etc.
Yeah, you missed the point. The point is that for the same purchase, there are different amounts of tax benefits.
Starting early is the best way of getting ahead to build wealth, investing remains a priority. The stock market has plenty of opportunities to earn a decent payouts, with the right skills and proper understanding of how the market works
The zenith of investment platforms deals mainly with Bitcoin and forex trading.. investing wisely
@@evanwong8111 I agree with you
I Have been trading offshore, I’m yet to make my first 1500USD... any recommendable expert to trade with?
But I learnt the hard way. Blowing over $5,000acct side trading with no mentor or expert
But with the help of Sir Christopher Eugene I was able to regain myself in trading
It's amazing how we let rich ppl hold onto most of their money.. but us broke folk, come out of pocket all the time
“let rich ppl hold onto most of their money” let??? Are you serious? They don’t need your permission to keep the money they earned with their own hard work. Want to get rich? Then don’t live off of others, be smart and you’ll find your way to the top. They deserve to hold on to every cent they worked for, and the same goes for us.
The rich avoid taxes most taxes come from poor people and the rich don’t need the poor’s permission to avoiding taxes it about the government it makes for rich people it easy to avoiding taxes if you rich
@@MaiNguyen-ck4br 40% of all taxes come from the top 10%. Vox is deliberately making false claims on here.
Tax deductions do benefit the rich, which is exactly why they love high tax rates, as it makes those deductions necessary. But it is absolutely not true that the poorest people pay the most. In fact, almost half the country gets more back in transfers than they pay in.
2:55 I might be wrong, but I think there's an error here: Italy didn't "get rid" of deductions, we just fixed it at 24% (like Canada a few seconds later in the video, but more).
Or at least that's what I knew.
Wtf how is anericas taxes so high? In NZ our tax ranges from 10% to 33% at the highest, but we have the unemployment benefit, universal health care, subsidized schools and college fees yet pay less taxes in the US?
52% rate in Ireland including everything at the highest rate
The range reflects the distribution of wealth-- albeit poorly. You can find chart's all over showing the net worth across the US's population, and what it amounts to is a tiny flat line for 80% of the graph, followed by a comically large spike. Through brain-dead conservative policy, 10% our population owns more than the remaining 90% combined.
Taxes here really are not bad, half of americans do not pay any federal income taxes after all said and done and when you combine sales, property, and state income tax, ect. the average american in total pays a little under 15%. We have really expensive healthcare, a huge military, and a very complicated tax code.
More than 50% in Germany off
I imagine NZ's small military spending has somthing to do with it.
*3:43* Where can I buy a house for $100,000? Count me in!
Quite a few places, actually. The Midwest has a lot of real estate for 50-100k, and you could buy a house for 80k in Phoenix not too long ago. It might be over 100k now, but it is no question available all over the US (you just may not prefer to live there)
Adrian Putra and yet if you compare the cost of houses from 2007 to now, it’s absurd how much they’ve appreciated (this is allocation dependent, of course, but it holds true in general). Yes, from time to time a bear market will negatively affect prices, but, unless the country literally falls apart, prices will always not only come back, but rise above what they were before a collapse.
Detroit for $1000 in some neighborhoods. I wouldn't recommend it, also Maine, Maine has some pretty cheap houses.
Scenario 1: person A earns 30K per year and pays 15% of it in taxes or $4,500 while person B earns 500k per year and pays 39.6% in taxes or $198,000. I don't think it's fair that both would be entitled to the same deduction benefits unless both of them are in the same tax bracket. Give person B the 15% tax bracket and change the deduction rules if you want to be fair.
Scenario 2: a surgeon earns 500K and pays 39.6% in taxes while a hedge fund manager pays 23.8% in taxes on the same income. The difference between the two incomes is that the first is salaried income while the second is risk income. If the hedge fund manager invests and loses money she will earn a capital loss while the surgeon will never incur such a thing.
In my view, it all boils down to those that seek job security should be content with having less financial privileges than those who risk losing and earning nothing at all.
Glad you said it, because I didnt want to type out all the "inequalities" in their logic.
"...while person B earns 500k per year and pays 39.6% in taxes or $198,000"
This is wrong. Person B gets the graduated tax brackets, plus the first $24k is not taxed. For instance, a married couple has a tax bracket of 12% for income $19,050-$77,400, and the highest bracket 37%, doesn't kick in until after $600k. P.S: if the income is long-term capital gains to a couple, the first $77k is taxed at 0%, and the next $400k is taxed at 15% with no FICA taxes at all.
As a financial professional, this video shows little to no understanding of how the United States tax code works.
How does it work then?
@@matthewarnold4557 waiting for an answer
@@frostonium 2 years and counting
He's right, I am a tax accountant. Deductions for charitable contributions are not fixed to your tax bracket. A $100 donation regardless of how much you make will help you the same, as long as your itemized deductions are more than the standard deduction. Mortgage interest and Property taxes are just some of the things that count towards your itemized deductions, yet those deductions have a cap. In most cases the average person won't have higher itemized deductions than standard deduction. While wealthier people tend to benefit from itemized deductions (because they have more donations, higher property taxes, mortgage interest, etc.), the video failed to explain that donations have the same effect on itemized deductions regardless of how much the taxpayer makes.
DAMMIT STEVE, DAN NEEDS A BREAK.
HitzCritz t woy zmqerbyo
Mnb python and
Mryihgclp
رntrqoo
HitzCritz taxes just go to rich anyways , the gov never uses it on us
Damn, Dan lost his wife, his house was destroyed in a tornado and he got so poor he couldn't afford to feed himself so he had to eating his kids..... ALL BECAUSE THOSE TAX BREAKS AND LOW WAGES STEVE!!!
Privet comerade RevSantee! How goes undermining the cohesion of our great enemy? I see the English lessons didn't take...
I wish this video had a better explanation of percentages for the different breaks..
Michael Pearson there’s actually another vox video on that
VMohdude - drop a link
Michael Pearson it’s called “How tax brackets actually work”
VMohdude - I think my comment was expressed poorly - tax brackets are simple. I’m in search of a breakdown of different possible deductions
Well the way they explained the church donation it was 1:1. The tax break is equal to the % of bracket you belong to.
the funny thing about this kind of videos is that they use the percentage as it suits them, sure rich guy's tax bracket is only twice as high, but when it comes to actual dollars it corresponds to much more.
this is why you don't make a CEO a president
Thomas Murphy
Did you even watch the video or do you just have a sick sense of humor?
Jaskanwar Randhawa rather take a ceo than a corrupt politician
This is why you DO. After the big business have tax breaks they get their cheap factories back to our enter cities and get more jobs.
damrak1969
You do realize that Obama was the one that bailed out the banks right? Trump's new tax plan just pays off the rich. He's trying an oligarchy.
Trigger Warning you think factory jobs are coming back to the states...No way is nike or apple giving up $2/hr for labor when an American wants $15/hr, healthcare, vacation, and maternity leave
As a European I've never really understood the idea behind the tax deductions for "charitable" donations. Why should the government essentially pay for 15-40% of donations you make to various charities? Shouldn't decisions on what tax money is spent on be up to elected officials rather than giving individuals the ability to spend tax dollars willy-nilly on practically anything?
i 100% agree, i think it would be more fair if we all had a 91% tax rate, that way we will be sure the government spends that money
@@premadesetups You act like the people who spend the money aren't elected.
Don't like how your government spends their tax money? Vote them out? They, and by extension their spending, have majority support so you can't? Tough luck. That's called a democracy, not a dictatorship with you at the dictator.
Yes, I started asking for receipts when giving donation at GW, but then I realized that credits only count when giving huge donations. Since I only give, like 2 or 3 boxes of old clothing, toys or books... I kept doing donations but I don't ask for receipt anymore, doesn't worth it.
Framing the problem as income inequality takes the focus off the struggles of most Americans. It should be framed as rising consumer debt
800 goes to the house ,200 to the bank. Yeah in the 25 th year, when dan starts payingthe morgage, 50 goes to the house and 950 to interest
Exactly, I was shooting at the screen!
@@pmeagle I don't get it. Can you please explain how 950 in interest and only 50 on the house because it's the 25th year. Not too familiar with mortgage
@@cvoiceofficial The classic French depreciation method, the % of interests on your debit each time you pay monthly rate start at 100%.
Assuming in this overly simplified example you have a 10year mortgage: the first year you pay $ 10k to the bank, but of those 99% is _interests_ you owe the creditor; only 1% actually goes to your debt. As time passes that percentage lowers, and the last month you pay 100% your debt and just the remaining 0% of remaining interests.
1st year 99% interests 1% debt
2nd year 90% interests 10% debt
3nd year 80% interests 20% debt
...
10nth year 1% interests 99% debt
Now the percentages are not exactly those but it gives you an idea.
Basically the first years you basically pay almost only the interests of the debt, creditors get their profit very early on.
What remains is actually the real debt (which corresponds to the capital you got from the bank).
@@pmeagle I see.
Right? I want whatever bank Dan has!
The example of the rich man with the museum..
really *sickens me* T.T
to be fair, VOX retracted the misinformation regarding that museum. It is free and open to the public.
That is largely beside the point. The point was he created a museum to avoid paying more in taxes.
I'm not so sure. I think the power of the example was not that someone endowed a museum (terrible as that is!) and the tax code rewards them for that behavior, but rather that the museum is not "really" a museum since it's not open to the public. As that last part turns out to be false, the point is no longer worth making.
Read the video description...
"Correction: At 2:20, we say that the Glenstone Museum is only open for private tours. But, in fact, it’s free and open to the public for scheduled tours."
Channel for Positivity l Understanding l Justice the fact that he didn't get hit with tax evasion is just Ludacris
Correction: At 2:20, they say that the Glenstone Museum is only open for private tours. But, in fact, it’s free and open to the public for scheduled tours
Schedule tour = private tour. In my opinion.
Scheduled tour is private tours. A true museum will let people in tour or not with a small fee to maintain the museum.
4:40 it saves more because he pays more, quite simple math
Luís Frederico Santos shhhh... dont put math on taxes... is not like we are talking about numbers...
A deduction of $10 at a 39% tax rate is still worth more than a deduction of $10 at a 20% tax rate. It's quite simple math.
@@MrC0MPUT3R I think what OP was saying is, yes the $10 deduction is worth more, but the taxpayer in the 39% tax bracket (with all other things the same) still pays more in taxes
@@bryantl6768 Sure, in this example they pay more in taxes for making more money.
However, I think the point the video was trying to make, with the wording at the timestamp mentioned, is that people who have the means to buy these things use tax credits more like credit card points.
You can save a lot of money with credit cards if you're good about using them, but as soon as you spend money to get points you've negated any benefit. You should use your credit card for things you would buy anyway. Which is what happens with tax credits as well. The person in the video example didn't likely buy the boat to get the credit, they bought it because they wanted it. They got the mortgage on it because of the tax credit.
This is the main thrust of it. If I'm getting a tax credit at a higher tax bracket for purchasing a house, then that house is cheaper for me to buy than someone who would get the credit at a lower tax bracket. Which was the crux of the video. That difference in real price seems very "unfair" especially considering many people make a lot of money off of investing in real estate.
Glad I found this comment. Should be obvious that the guy who pays at a rate nearly triple to another also receives a benefit nearly triple to the other. Duh.
In other news I'm still a virgin
Gucci Versace well.
Gucci Versace 😂😂😂
Good. Don't beaho.
Get rapped
Mann I just need a ᴳᶦʳᶫᶠʳᶦᵉᶰᵈ
Right off the bat. When Dan made his $100 he paid 15% to taxes. So when he donated he got his $15 back. Similarly when Streve made his $100 he paid 39.6% to taxes so when he donated he got his $39.6 back. So its equal.
I am not sure you understood the depiction. Neither had paid those taxes. They reduced taxable income and paid less.
If you struggle to understand how a rich person is being subsidized by the middle and lower classes in the current system, that shows a profound failure in civics teachings in the education system.
@@TheLastWalenta last time I checked the rich don’t get free healthcare(Medicaid) free food (food stamps), low
Income
Housing, etc ...Who’s subsidizing who
@@steve-0g466 This comment shows a broad lack of understanding of macroeconomics. Reagonomics has been given 40+ years and 6 administrations to show it can work, but has failed repeatedly.
If a business is benefitting to such a large extent from the safety and infrastructure provided by tax dollars, then yes, their "fair share" should be proportionate to their gains.
Now if those successful businesses pay less in taxes, the "whole pie" has a higher percentage of middle class dollars in it. Or, the country has less money to provide for the equivalent safety and infrastructure.
If we go further and remark that a business paying wages insufficient to live, that low-wage worker is now using a social safety net, paid for by taxes, of which the middle class is paying more. Thus, the middle class subsidizes the wages not being paid by large, wealthy business owners.
But your comment on the poor taking advantage of social safety nets also has a moral shortcoming. You are implying, intentionally or not, that those people are somehow taking what should belong to the already rich. ("Who is subsiding whom?") It is a moral lacking to suggest that while poor people using social programs to feed their families and access health care is a social bane, it is somehow morally superior for the wealthy to use tax avoidance to gain millions or billions more dollars in net profit.
I repeat, the comments in this thread show a substantial lack of understanding of basic civics. Shame if you can feel it.
@@TheLastWalenta well when the high income Earners pay the majority of the taxes yes they can avoid taxes or defer them I see nothing wrong with that. People always mention raise the taxes so we can have more things instead of saying “the government has a spending problem”. And insufficient wages is individual specific and location specific. Everyone’s situation is different and most people be popping out kids and not married and wasting money on Gucci and iphones. That is why America has so many poor. We have a financial education issue. All those loopholes anyone can take advantage of. It’s just people don’t care to learn
@@steve-0g466 I am sorry, but you write with the perspective of someone who has never read the counter-arguments to any of your positions at all. I am done here.
Let’s not forget the fact that the top 50% earners in the US contribute to 97% of tax revenue.
This is just ignored because people don’t care about that. What they care about is having more money in their pockets for less effort. That’s why they’re poor, because they don’t understand how the world works.
I'm not 100% on this stuff, but I think this video and what it's talking about is the higher part of that 50%, like the top 10% (or something). I think that's kinda where the "richer get richer" saying is talking about. I would think that near that 50-70% mark would be classified as like the middle class or upper-middle class.
well and also I think this video is saying that yes they contribute a lot to the tax revenue, they are also able to earn a lot of that back through loop-holes.
I was already voting for Bernie, but this video just made me angry.
Why not get educated first - don't believe everything you watch. Bernie will run this country into the ground. Nothing is "free" and it sure feels great when you earn it yourself.
@@lyndor8780 oh please. you people make it seem like it will be the end of the world when in reality, every other major country offers health care for free and their citizens LOVE it
@@lyndor8780 no one except for Republicans are saying "nothing is free". Dude no one ever said it was. Where do you think tax payer money comes from? Even the homeless pay taxes and so do illegal immigrants so what's your problem?
l yndor ofcourse it wouldnt be free, there will be higher tax, but significantly more on the rich, so in the end it benefits the poor way more
@@lyndor8780 stuff like free healthcare is already anaccepted reality in every high income country except the USA. Also why should we spend more on millitary and less on essential programs like welfare
This is what happens when you literally elect a businessman as president and become shocked when hes looking out for his own back
This is what happens when you literally sit and watch CZcams instead of being your own entrepreneur
@cassl14 I know generally when you blame your problems on others and mix it with two cups of lack of motivation/ambition you get people advocating for a federal minimum wage that would wreck the economy of small town populations
@cassl14 first of all sir, I am not a right wing Kool. I am a dixiecrat, a supporter of the left.
@cassl14 a belief cannot be dead so long as there's at minimum. One supporter
@cassl14 Ha ha , yeah it is! Actually they are all republican now. That happened in the 60s.
Whew, good one Canada
I think he was complimenting Canada for circumventing the Charitable Deduction tax by using a tax credit. They mentioned it in the video. This is a problem worldwide, actually, but America is ranked worse than Canada and most European countries, due in large part to some of these tax laws.
Income Equality in Canada is only a little better than it is in US, which makes sense since our economies are so closely connected. Over the past twenty years, the top 20% of Canadians have been getting a greater share of the total income across the country, rising to 39%, (meaning 20% of the country makes 40% of the total wealth). Our tax laws reduce income inequality by an approximate 27%, which is better than America's 22% reduction.
Neither countries rank very highly compared to most European countries, though. All in all, "good one Canada" may not be entirely accurate, but we're doing better than America, which is basically our tagline for "not too bad", ha ha.
Source: www.conferenceboard.ca/hcp/Details/society/income-inequality.aspx?AspxAutoDetectCookieSupport=1
We won't say that we're better, it's just that we're less worse #ArrogantWorms #ProudToBeCanadian #TheyShouldHavePutProudToBeCanadianOnObamasIpodInsteadOfCanadasReallyBig
Maeu Daou I wouldn’t know about that but I know you have some of the worst colleges and healthcare in the world
So I was having this discussion with my dad. He makes about $700,000 in income a year as a physician, with a large chunk of it going down the drain from his high 39.6% income tax, now 37% with 2019 tax brackets. All of his investments that are not income/dividend producing securities have an appreciation, or unrealized capital gain. When he unloads or sells them, he has to pay a tax on the capital gains by his income tax bracket. I told him when he retires, he won't work, so his capital gains tax can drop from 20% to 0%. So, in theory, rich individuals with millions of dollars of unrealized capital gains can get away with paying 0% taxes on it by not working. Lovely system, isn't it.
"the US spends 70 billion a year on this tax deduction" umm no, government don't "spend" money when you lower taxes. If you consider tax deduction as a type of spending, you are starting with the assumption that everyones income belongs to government, and everyone need to justify getting some of it back
👏
Have a break, have a Wage Inequality Kit Kat
Come home, to Simple Rick's
The fat cat will swipe your Kit Kat.
4:59 , just died of laughter, lol!
I knew it was broken, but wow.
In this video the massive amount that rich people are taxed is considered "help" when they donate to charity instead of realizing how much they're punished. Canada's reimbursements actually disincentives charity altogether for rich people, because they're losing all their money to the government and are then expected to "benefit" and get "helped" by spending their remaining nonincome on charity. In the 80s lowering the rate of course helped charities, because their entire thesis is wrong. Then there's some BS that Trump loves interest deduction and capital gains rate. www.cnbc.com/2016/12/01/heads-up-homeowners-mortgage-interest-deduction-on-trumps-chopping-block.html Bill Clintons government had the GDP surplus based on not fighting a war, skyrocketing household debt due to his mandate and recovering from a recession. And for some reason this is never shown. images.duckduckgo.com/iu/?u=https%3A%2F
+Raging Red Better *DEAD* than *RED*
I don't get how you think it's broken, Tacet.
Deduct-ception.
Hope your not actually american, cause that would be sad!
My friend once said no one wants to go against these bills because everyone thinks they’ll become rich one day...didn’t know how to respond but it made total sense
so we gonna ignore how steve and dave be packin
bois be looking like gru
This video just reminds me to keep building a business. Owners will always do better than workers.
The script writer should take a basic economics class
90% of what is taught in an economics course is wrong or outdated.
@2:33 Reaganomics. Trickle-down economics.
Obviously, the system is designed that way, because the people who make these laws are rich themselves.
Why the hell are church donations tax deductible...
Dark Ninja all charitable donations are. stop being triggered
Churches and other places of worship don't generate revenue so they rely on donations to keep the lights on.
But church donations in Texas don't benefit me, in Maryland. So why should they get a federal tax break. The local swimming pool doesn't get a tax break for its membership dues, which are essentially donations. Same thing anyway. The people who use a facility should shoulder the cost of the facility, without the benefit of tax breaks.
Yea, but I’m sure the churches in Maryland benefit you, either directly or indirectly. The truth is many churches do a lot of good on a weekly basis for their communities. For example, aside from providing food for the poor families in our area, our church is also raising money to give to college stufenrs in India for a nice Christmas dinner. They benefit you because they contribute the community you live in
Edit: college students *
You'd be suprise how many American and Europeans know about this already.... sad but true.
you'd be surprised how many americans dont.. or dont care enough to do anything about it
A young professor who lives in the USA said, “ I get to go to Rome!” ( for a conference),
What a bunch of B. S. that is.
“The United States has a problem with income inequality”
Comunism: *INTENSIFIES*
Marco Poletti The US has a problem of people wanting more free giveaways and not working.
@@Guitaroverkill Sure, use strawmen that to justify oligarchy.
@@Nognamogo So your solution to finish Oligarchy is to support Communism.
Abhishek Dev to support Democratic Socialism, like the Europeans, to have high progressive tax making way for great social welfare
@@tanthedreamer what??
Correction: At 2:55, a previous version of this video mistakenly included Australia in the list of countries that got rid of their deductions for charitable contributions. In fact, it should be Austria.
Vox Lol that old gag 😄
What is your source that Switzerland got rid of the tax deduction for donations? That's just not correct. "Donations made to a ZEWO-certified charity can be deducted from both federal taxes and cantonal and communal taxes." Source: www.ch.ch/en/deducting-donations/
That’s the only correction you want to make?
Mike Taylor
Where we're going, we don't need sources. 😎🚙🔥🔥🔥
Mike C haha I can see. I’m shocked I passed the CPA exams after watching this video. Looks like I had everything backwards.
Yup, helps Trump, Hillary and all their Wall Street pals.
# feel the bern
Alucard, sorry, I don't want a communist in office. Ever.
nexus1g A Communist? Uh you're the reason the 'Americans are uneducated' stereotype still persists..
@Sam- 'Americans are uneducated and arrogant' is the perfect stereotype. Being ignorant is not a major sin but being adamant to not enlighten is. Ignorant call enlightenment as fake news.
helps bernie pay for his mansions too
What they forgot to mention is that the charitable contribution and home mortgage deduction are both itemized deduction
Oh no they conveniently forgot to mention a lot of things like the fact that Dan pays only $4500 in taxes that gets returned at the end of the year where as Steve pays nearly $200,000 that do not come back at the end of the year. Ever heard of the phrase buy more save more? That’s exactly the kind of thinking that you would need in order to think that a higher deduction for a higher tax is a good thing for you. So in other words you would want to get more money deducted by getting more money taxed!
@@marcoquiroz3558 YES FINALLY SOMEBODY
I almost went into a seizure watching this video 🤪
Guys, how have I not seen this yet this is huge
In all those examples, Dan receives more relatively to his income and tax than Steve does. The only real problem mentioned is when people try to game the system like in the private museum example. I guess charitable donation receivers should be regulated somehow, or at least the donor should not have any ties to the receiver whatsoever for the donation to count.
I mean, while the mortgage deduction is a bit strange (why encourage debt-making?) the donation deduction makes perfect sense - if you donate away some of your income every year, then effectively you chose to earn less that year, and it is simply unfair to tax you for the whole amount, and not for what you actually kept.
PS. I agree that a higher tax on work than on capital gains is unfair, though. Especially since the capital breeding capital is one of the main forces driving the inequality increase, and it is in the long term risky for the whole system.
In Sweden If you make 500 000 $ a year you pay 56% tax
pay*
and that's why there is no big companies in sweden
*cough* Ikea *cough* ICA *cough* Hennes och Mauritz/H & M *cough* Calesco *cough*
The elusive pyroshark Yeah and Volvo! Whats this other guy talking about
Olle Öhrling if you make 500 000 a year you are robbed of 56%*
Thanks, You just saved me so much money!
I have no hatred towards the rich and no respect for those who do.
Here in Norway you pay more taxes if you're rich. The higher the income, the higher the taxes
That's logical.
Piotr Czajkowski Yeah I think so too
You know the Good Ol' USA, the anti-conformist rebellious country that it is.
Ironically, the old "Muricans guffawing about their hipsters kids being "anti-mainstream" are about the same when it comes the policies and where the USA sits compared to the rest of the developed world.
Same in Denmark
The system is great and I can't really complain about it
SleepytimeJunction Hello fellow Scandinavian ❤👋❤👋
So what can we, as American citizens, do about it?
(I should clarify: what can we do NOW to change or influence what's happening NOW? The voting tips, while good, don't really apply after voting is done.)
eat the rich
Vote
Help educate those around you so they can make informed decisions and, later, an informed vote.
Be a lobbist, join the government and make reform? Or perhaps run for president?
Stop paying taxes as a form of protest?
Steve just might be a plug
I have a question. Why a lot of Americans side with the ultra rich when they themselves are not rich? It's a really curious thing isn't it.
Becouse its more complicated than the video suggests. I suggest you do your own resurch from non-political sources.
I guess people want to be rich so i understand it
I do not understand America's hatred of taxes. If I make $20,000 a year I should pay very little tax because I barely have enough money to live. If I make $1,000,000 a year I should pay significantly more tax because
A. That money can go towards helping people survive when they don't have enough to do so
B. There's no way I'm spending all that money so it can definitely go towards useful government thing.
If someone figures out a legal way to eat a million then they deserve to keep it. Why should they help the other person when they could not make the money?
Your claims rely on a fundamentally evil philosophy. Namely that people should be forced to relinquish what they earned because they can. Let me make the call to basically everyone in the middle or upper middle class. Why don't you donate 50% of your money to charity? You can do that and still live, so why not? Aren't you selfish for not donating all that money to a worthy cause?
To address your points specifically:
A. It can, but it won't. The best thing that can help people survive is finding a job. I'm cool with the government providing a little boost for people who really need it so they can go out and find some work. I'm not okay with a system that people can just live off of.
B. People actually do spend all that money. People far smarter than you or I. It seems like when people talk about the poor's marginal propensity to spend (poor people spend more on the economy than rich people, therefore benefit it more) they seem to forget the fact that rich people aren't just stuffing their money under their mattress. They're investing their money, which is just spending money except they're doing it with the interest in seeing a return. Of course to see returns on investments, we still need a large pool of consumers who spend their money (not invest it). From the higher rate of investments, the private sector will create more jobs. Far more effective than fake jobs the public sector creates.
What if instead, you donated to charitable organizations such as the "Red Cross" or "Feeding America".
Eduardo Bogosian Or how about you just get a good government that will help those who need it?
Why not?
Next up, how we should tax everyone 80% of their income because we deserve free stuff.
PureNT Even better! Instead of giving everyone the freedom to spend their money how they want, we'll force them to fund anything and everything through taxes!
+A posteriori then give them freedom to mine for oil, land to grow food etc. Explain what 80 people in the world did that was enough to earn them wealth equivalent to 350 billion poorest people.
@@aposteriori6987 money is a human construct.
3:50 Y'all got that backwards. The first 5 years of a mortgage is basically nothing but interest. Banks frontload interest so that if you default early on in the mortgage, they get most of the interest and then can make up the principle by liquidating the house. So even if the interest rate is 20%, your payments aren't split up that way until basically the end of the mortgage.
When 30 000 dollars an year is poor.
- cries in developing country
because prices are the same everywhere?
It’s almost like where supposed to be role models for other countries
@@OggeDCSubToMePlease how so
30,000 dollars this year
gets surgery
*-35,000 this year*
Yeaaaah, but i might become rich one day so better not risk it
american dream amiright
You wont.
Afterlifesinner I think the sarcasm went over your head
Afterlifesinner They were being sarcastic.
Old Elhorgus welcome to Joe the plumber no job no plumbers license but concerned about the tax rate for those over $250000
What is wrong with this? If you pay higher taxes, tax deductions help you more! Why would it be any other way??
That's how percentages work, yes. But the people that have more than enough money get higher percentages back, and the ones who can't afford it, have to pay more. Sound fair?
Matthew McClain I’m from Finland but i think this is the same in the US. The people that have money, didn’t just get it from nowhere, they worked for it. They also pay tons of taxes (here the income tax rate is up to 62%, that’s insane) and they want all the deductions they can get, so this is actually good for the charities because they get more
Marco Purovesi as the video mentions charities don’t do any better with tax deductions, and don’t fare any worse when the deductions are eliminated, so that whole line of argument is utterly mooted. Abandon it.
Every citizen should feel the same burden from taxes, and the more you earn the more you can afford to pay into the common pot before you feel that burden. Deductions that only the rich can access make the tax burden lighter on them than it is on poorer citizens. That is what’s insane.
@@yawpitchroll 10% flat tax rate and everyone is happy
Michael Morehouse Well taking away the deductions wouldn’t help the poor, and wouldn’t help the rich, so why do it?
Well of course the government knows best and should take everyone's money...here's you're sign.
We have a large national debt(mostly because of tax cuts), and it's been proven that these loop holes do nothing for the economy.
I’m not going to watch this, but based off of the title, I’m gonna go out on limb and assume tax breaks help the rich by letting them keep more of their money.
@EveryDay except more
@Fritz Georgiou it's not. Putting more of the tax burden on poor and middle class is a disgrace.
...at the expense of the poor and working class. Dont be bootlicker
Aye Bing Who doesn’t want to keep more of the money they worked for?
@EveryDay there is a difference between the total amount in tax dollars, the percentage of your income you pay in tax and the burden, a tax places on you.
For example:
Unrealistic for simplicity's sake
Everyone has the same tax rate of 10%.
Everyone only ever eats bread, which costs 10$ a piece with 10% sales tax included
Earns 1k: pays 100$, Bread costs 1.111% of the rest of the income. sales tax burden is .1111%
Earns 10k: pays 1k$, bread costs .1111% of the rest of the income, sales tax burden is .01111%
Earns 100k: pays 10k, bread costs .01111% of the rest of the income, sales tax burden is .001111%
So although everyone is paying the same amount, the guy who earns the most has the least burden on purchases through non progressive taxes like sales taxes. Its just not fair.
On top of that, this takes money out of the already empty pockets, leaving close to nothing after consuming for low incomes. meanwhile the rich have plenty left to reinvest and grow their wealth:
what can buy you more bread? a million/year with a tax of 60% (-> 400k) or 200k/with a tax of 20% (-> 160k)? Yes someone who earns more should also have more. But not linearily because prices and other taxes do not cost a fraction of income but a fixed amount.
if a car always cost 50% of your year's income, and a bread always cost .01% or something, then all of that wouldnt matter. But the prices are fixed amounts, sad.
Hey vox where do you get all of your information because there’s no support
Great and easy to understand video, thanks.
This is very helpful
2:55 The EU Kangaroo land Austria did *NOT* phase out deductions. If you donate to an organisation that is listed on the treasury department website (eg. charitable organisations, voluntary fire brigades, etc.) then the amount can be deducted.
People who pay less taxes or none at all are those who receive the most benefits.
You can save more on taxes if you pay a higher % of your income.
VOX WHEN ARE YOU GONNA PUT YOUR SOURCES IN
They make them up as they go along 😂
Flimsy Fox I mean anyone who knows how to navigate through google shouldn’t need a source
Bro they literally source the book, the author of that book, every graph they show, and more. What are you talking about?
Why do people hate rich people???
Because they’re upset with their own lives and hate to see somebody who worked hard for their wealth live a better life than them. This video is basically leftist propaganda.
Hold up, he's paying 20% interest on a mortgage? Oof.
That’s not how that works lol
$2,400 out of $100,000 is only 2.4% yearly interest.
It's very interesting that through the history things like this happen over and over again: Poorest parts of the society choose leaders that are going to destroy their lives.
Because the wealthiest at the top spend a significant amount of time, effort, and money on things like Fox News and other propaganda that exploits their emotions in order to convince them that it is in their best interest to unquestioningly support those very leaders who profit from their labor and suffering.
We have so many issues here in America...
Wait until someone brings up the topic on Health Care :/
taxation is theft.
thus we have more problems :)
You think your country has so many issues? hahahahahahahahahahahaha
@jfcc you're an idiot.
@jfcc YES IT IS! YOU'RE TOTALLY RIGHT
I also want to live in a country where *infrastructure* and *public services dont exist!* Pure chaos!
Now rethink about what you've said..
I understand that some of the rich people have earned their money working hard and making a name for themselves, but the whole “pick yourself up by your bootstraps” policy doesn’t work anymore. Americans live in a system that feels like it is designed to keep the poor poor, and keep the rich rich.
Switzerland hasn't gotten rid of their deductions for charitable contributions. Evidence: My tax return I just filled out.
Could be that this was abolished in some parts of the country and not in others. The tax system differs widely depending on where you live.
VOX is truly a youtube hidden gem! Love your videos!
hardly hidden with 3M subscribers
Miki Nguyen hidden gem with 3 million subscribers?
1791L begs to differ
Miki Nguyen Lmao hidden gem, YT blatantly promotes Vox and TYT for confining to the liberal echo chamber. Why do you think so many of their videos hit trending for no reason?
Rhys Morena 1791L is a right-wing nut who confuses his opinions with facts.
Wouldn’t Steve save more money because he pays a higher percentage in taxes because he would pay 39% of the 2400
If you donate 100 and get a 40 tax deduction you are not earning 40, you are losing 60. So, apart from the case you mention where a guy is donating to his home museum (which should be out of the law) it is supposed that a richer guy will donate more money (nominally) and I find it fair that he doesn't have to pay taxes for money he doesn't end up usufructing.
The top 1 % combined pay more then the bottom 90 % combined. If you look at numbers Steve says 3 time more on his exponentially higher bill. Steve saves more but also builds a shell of a lot more roads
Fox News acknowledging income equality? Wow lol
If you want to start saving as much as Steve you need to start making as much as Steve so the government can text you at 39%
Literally 99% of people will never do that. Don't be stupid.
@@potatorecipe742 LOL
potatorecipe lol
@@potatorecipe742 😅
15% on a $30000 income has a far larger effect than someone losing 40% on a $400000 income. Lets take rent for example, and take the hypothetical rate of $1500 a month for a one bedroom apartment. Thats $18,000 a year in rent, or 60% of your income. In comparison, it represents 4.5% of steve's income. If you go on after tax income, it is still 70% vs 7% of steve's. Lets say steve wants to live in a luxurious house at $60k a year. That is ONLY 25% OF HIS AFTER TAX INCOME.
tl,dr :- I would absolutely love to be steve.
Night King music at the end.
i made a personal museum and the government was so happy that it gave me a tax discount on that !