The new US tax law, explained with cereal
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- Опубликовано: 22 авг 2024
- We're a few Crunch Berries short, friends.
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There’s a new tax law in town. It passed without a single vote from Democrats in the House or the Senate, and it’s a huge windfall for the richest Americans, including President Donald Trump.
But Republicans didn’t just want any new tax law, they wanted to reform the tax code. To give the richest Americans a big tax cut while still funding the government’s essential functions, like building roads and flying fighter jets, the GOP needed to find tax revenue somewhere else. To do that, they had to start taxing income that used to be tax-free, by closing loopholes and eliminating deductions.
If all of that sounds boring and confusing, fear not. We’ve broken it down in this video. Just don’t blame us if it leaves you craving cereal.
If you want more context, read this article from our website that goes into more detail on the tax bill: bit.ly/2qWUe9h
Good point Forrest. lmfao. Let me know when you grow up.
Vox ps. I don't know why everyone is making a big deal out of the cereal. Good job guys.
@J. Singh, that's been considered already. Not a single think-tank, either liberal or conservative, supports the GOP's or the WH's account that growth will make up for lost revenue. The more optimistic account says that there will be a 500 billion dollar deficit, as far as I remember. You better look it up.
@Forrest It's a form of socialism, essentially. We can't depend on individuals to build roads and other important things, so we collectively pool our money and make collective decisions on how to spend it.
While the tax bill sucks for various reasons, it is really reductive and misleading neoclassical nonsense on deficits to imply the gap must be 'borrowed from the future'.
The government creates money by spending it into the economy, then destroys some via taxation - taxation serves 3 functions
1 To control inflation
2 To create demand for the currency and uphold exchange rate values
3 To effect incentives in the market
The US must remain a deficit nation if it is to retain reserve currency status, no one else can make those dollars. The issuance of bonds is neither necessary (other than to populate the yield curve) nor strictly borrowing, 2/3 of bonds purchased are by US institutions. In other words most of it flows directly back into the US economy (if not necessarily to the right places).
The national debt could as easily be called, the inter-national credit.
Yes, taxes should not be structured to maximize productivity and minimize rent seeking (a land value tax is the ideal mechanism) , then if we fix the private debt problem, and stop worrying about not taxing enough to 'pay for everything', then the public debt/credit needed to keep the economy functional would be far lower.
Most depressing Minecraft let's play I've ever seen.
L.O.L.
@voicedify : very funny. You should quit your day job and become a comedian.
@voicedify : this thread has been good for your self-esteem, hasn't it?
To be honest, yes, but only slightly. Life has been rough for the past few weeks and this thread, using your own words, really has been good for my self-esteem.
***SIDE NOTE!*** I have a confession, everybody. I am not the original creator of this comment; someone else a few pages ago wrote this and I decided to copy it. Under normal circumstances, I would have gone on my merry way except for the fact that I absolutely loved the comment and was slightly disappointed that, ironically, he had NO replies! Zero! So if you all want to praise the original commenter, be my guest and go find him. I don't deserve all this fame.
@voicedify : wow, weird that his identical joke can get the exact opposite amount of attention yours got.
Cereal killers
no lol
cereal killers make by Donald J. Trump.
hack the planet!
😜 😆😂🤣 🤷 🤦
👀
👄🍭
Goddam.... Godblessit that's an awesome pun!
I would have understood it better if they used Rat poison or maybe decomposed granite.
I think you would have preferred bullets.
I love decomposed granite for breakfast!
@@KGBos 😂
?
I prefer Bars of lithium
i dont get how the cereal analogy is easier to understand than just saying money
EDIT: why are people still arguing about this
Lactose_Cow He's gotta appeal to the low IQ liberals
walter you’re late on your comment dumbass💁🏽♂️ if it’s been more than a day just shut up. And this channel is also for kids who are still in school so its appealing to their broader audience 🤔I’ve gotta ask. What’s it like never thinking anything through before taking the time to type it out? Is it as fun and embarrassing as it should be?
Rick Swordfire You can all see how this dumb lefty got offended when I said it too haha
Do you honestly believe that over half the country is just stupid? Over 140 million people? Yet you never see them in real life, you never really meet more than one or two of them, but you hear about them all the time on the news, you hear people talking to them on the internet, you sometimes even talk to them on the internet. Where are they in real life? Are they living underground? Are they all in California? Probably not. The fact of the matter is that half the country isn't stupid, not 40%, not 30%, not 20%, not 10%. You hear about the most extreme people on the internet and from other people not because it's true but because it generates clicks. It's just plain false to characterize all liberals as idiots and vice versa. You only hear about the extreme left on the news because that's what generates clicks, not because that's what people believe. That's why you really can't characterize a group of people so large as being homogenous. It's just not true. The scope of being liberal or conservative is just too large. What you've got to realize is that people are driven by the same motivations as you. Life, liberty, and the pursuit of happiness for themselves and their families.
Byte11 That's a nice outlook, but I've traveled a lot, met many people and I've found out that there are a lot of stupid people. It's a fact of life and always will be.
This cereal analogy was way more confusing than it had to be. Just use actual money, people aren't complete idiots and know how money works.
There liberals they have to be spoken to like 5 year olds
Trumptards do not understand economy so he has to use cereal to make it easy for them.
Can we all just agree that there are stupid people on both sides of the political spectrum? The Us vs Them mentality in this thread is futile.
The cereal analogy eases the pain of how correct this is.
It's that kind of narrow-minded dogma that gets us no where. No one's ideology is going to always be 100% correct, especially as we learn new information and grow. To completely dismiss one side of the political spectrum, regardless of which side that is, results in the stagnation of progress. It's important to listen to new ideas and alternate opinions, not ridicule them because of their origin.
I have decided I will be rich this year.
This will solve my emotions to this issue.
Physionic you have no idea how many people unironically believe this very thing....😔
Good luck, if you say it louder in your head this should work
Vincent LO maybe also pound a table with your fist, I heard it increases chances even more, or maybe dress up in subway costume and scream I wanna be rich on the middle of the street
You will be rich. This is your year. I believe in you!! Keep me updated.
TakodaRA Thanks for the support, haha!
1:44 "...the government is going to have to go into debt." I burst out laughing at that point. Go 'into' debt? As if the government hasn't been in debt since forever!
Literally since forever 😂😂😂
@@ntogegaoza8775 i think they paid it back once... far more than a century ago
No seriously, i watched something in television and they literally paid back their debts one time if my memory serves me correctly
@@that1niceguy246 yeah but it wasn't 28 trillion lol thats impossible to pay back
@@theoneandonly9282 If it were impossible then the U.S. would have defaulted on their debt, but that hasn't happened yet.
But now it is cereal debt
The cereal kinda made it more confusing, can we just say money
It's why you never write scripts while you're hungry.
Thanks for using cereal, it was an extremely necessary analogy since people are incapable of thinking in dollar terms.
I'm gonna eat my cereal before the government gets their hands on them
Cecilia Lind then make a corporation
oof i dont think thats a smart idea 😂 just replace “eat” with “spend” and “cereal” with “money”
unfortunately the government gets their hands on it before you do
lmao
I love this comment, cuz this is actually a principle of economics.
When the government will take people's money if they keep it as money, they will reduce their savings, and start spending more.
"Time preference"
Me, an intellectual: _eats all the cereal_
Lets make tax more interesting by literally replacing the word tax with “cereal” instead.
smh and now i want some cereal
Can’t drink milk :(
Me too 🤪
DonYelle and Diana wat is 'smh'?
+Mr G Gaming 2.0 Potato It means Shake my head
This whole video was designed to set someone up for this comment, lol
honestly the cereal analogy just made it more confusing lol just use money.
Agreed. I think it was an attempt to be less divisive, but the number of times they mentioned "Republicans" failed that. Analogies just end up confusing people anyway.
Dommy521 it wasn't complicated.
i didn't have a hard time cuz one of my professors loves doing that (correctly though), but i admit it was a super pointless analogy here lol
It was clear. The wealthiest pay a lot less
yes, it was clear, but it was unnecessary. the point of an analogy is to make difficult concepts more understandable, but the concept of having more or less money is very understandable lol
Or, and listen this, the government could slow down its spending
At least twice in the video, Vox says the government "needs" its money. What a joke. "To pay for that stuff the government is going to have to go into debt" ummm like no they don't have to they can cut their spending instead.
More people and cut from what end?
Cut where? Social security? Medicare? Military? Good luck getting votes on that platform.
@@jaketyler7088 I agree, slash the military budget!
@Rajeev Vij If you cut the military budget in half, we're still the most powerful military by a lot
"The government will have to go into debt"
OH NO, NOT THAT, I CAN'T IMAGINE A HORRIBLE FUTURE WHERE THE GOVERNMENT GOES INTO DEBT
THAT' WOULD BE *TERRIBLE*
I find curious how I know more about American news than my own country's. Thanks Vox.
Erómeon | if you're getting your news from Vox, you might actually not know that much.
Adit Seth It's better than Fox News
Adit Seth I don't get my news from Vox (proud WaPo sub here) but they also have a website. If you compare Vox to any secondary news source (Breitbart, OANN, ShareBlue) Vox actually has a ton more information and research on their website (not just videos). They might have a liberal slant, but the information they provide is credible and not sensationalized like those three sources.
Jacob G | it's better to get Reuters for news. I don't support Breitbart for news either.
Fenistere Inc. | Okay? I never said Fox is a good source either?
The government is spending money on things it does not need. The government is seriously overspending
the white house doesn’t need all those renovations and redecorating when we’re so behind financially. you’re right. there’s a lot of dumb things the govt pay for. they need to learn to budget like regular people. bills and necessary fees first and then the fun stuff.
MrManiak The National Science Foundation and UC San Diego spent $1.5 million to put a mudskipper fish on a treadmill, testing its flopping speed and need for oxygen, the government spends more money than it even generates. What does the government waste our money on ? Things like putting a fish on a treadmill.
MrManiak thank you for the link, I actually admit that topic interests me. I just believe that there is much more useful things the government could spend our money on, another example is that of The National Eye Institute and National Science Foundation spent $300,000 to conclude that girls play with Barbie dolls more than boys - and could better pick out the faces of Barbie from a lineup of assorted dolls, according to “Wastebook.” “Our nation’s most prestigious science agencies are literally playing with dolls, to study what is obvious to children who haven’t even graduated from preschool yet - whether boys or girls spend more time playing with Barbie doll. We are trillions of dollars in debt as of now and all of these useless ways the government spends our money isn't helping much. I'm sure that there are many things that are beneficial to us, but I'm sure that we can both agree that not all of our money is going to good uses.
MrManiak lol no hard feelings :)
XxwierdoXx1 Literally the most civil political conversation I’ve seen on the Internet
Not sure if this video was meant to explain taxes to small children or Vox is just extremely condescending towards everyday people
I would say they wanted to make a light-hearted video.
Well they cater to entitled millennials who still act like children... So I guess they are just pandering to their own...
If you didn't like it, don't watch. Tax policy is confusing. Every little bit of education helps.
You forgot to answer the most important question, what KIND of cereal are we talking about here? That makes a big difference.
Honestly using cereal to explain this just made it so much more incomprehensible lol
Create a debt. start a war. repeat
AJ that's how Libtards work, and put the Blame on Trump. Ahh Nov 9 the best day in my life.
Juan Fredic Carlos did you even watch the video?
Rithwik Sankar lol now you know the answer to that already, of course he didn’t.
Kortez haha
Juan Fredic Carlos you must not have been around for GW Bush...
But according to the Congressional Budget Office the top 20% earn 51.3% of all income and pay 84% of the income tax
jared brown there is another entire vox video dedicated to answer this question,
That's the whole point smooth brain
"So let's break down what's actually going to change."
**Vox logo pops up**
Even the POTUS could understand this video!
No it was longer that "tweet sized" and it didn't include his name throughout the video to keep his attention. (All true tactics used by his own staff to get him to read his daily briefings)
That says something.
Tychoxi, ummm, you might be stretching it...
Might need to change it to Mc Donalds fries for him though, and air it on fox, with a picture in picture image of himself to stare at too.
Tychoxi
Their going to have to go into debt because of this tax reform?
Guess the people at vox didn't see how much the debt raised under Obama before this tax reform bill...
The government needs to cut expenses.
www.washingtonexaminer.com/record-135-billion-a-year-for-illegal-immigration-average-8075-each-25000-in-ny/article/2635757
It's a great time to be rich in America
Sanket Sharma let's immigrate bruh
It's always a good time to be rich.
"Eat your pheasant, drink your wine, your days are numbered, Bourgeois Swine!"
When is it not?
Sanket Sharma You ma man are a disgusting person.
2 things:
First, those graphs are a bit misleading as you are looking at objective cuts rather than relative ones.
Second, how about explaining some of the cuts? What cuts will only apply to me so long? Which ones will apply to the richer Americans forever?
I'm fine paying taxes on things I believe should be taxed, and I'm fine with others getting tax breaks if it ends up helping America. For instance, if I remember right, rich folks get some of the new tax breaks if they move their companies to America, and/or if they invest more in their companies. Those are all things that create jobs, which I think we can all agree is a good thing.
Agreed, if job ever created. I believe we had this instance in the past history with some state, and the result was pretty negative :)
link 2012 no they don't. And you want to know how much the rich got and not the majority of Americans the richest families in America and the richest corporations in America got 2 trillion dollars worth of tax cuts. Do you know what's happened since then stores like Walmart have closed dozens of locations and fired hundreds of people even though they got part of that 2 trillion-dollar pie. Companies like carrier the same carrier that Trump boasted about saving have also closed down several more factories firing hundreds of workers and are moving those jobs to Mexico even though they also got part of that 2 trillion-dollar pie. No these people are not refuse the tax break if they don't move jobs back to America they still get to keep it regardless. Saying if the rich have more money than they'll surely invested in their business creating more jobs is trickle down economics which has never worked because it's been around since the 80s and it never work then. This tax cut is only to help the wealthy and their tax cuts become permanent what little money the rest of us get is not permanent. And who do you think is going to have to fit the bill over the next couple of years from the loss and tax revenue because it's surely not going to be the rich because once again their tax cuts are permanent.
rouge1ful nothing to add, great comment
rouge1ful It worked in the Roaring twenties why can't it work again ? [oh wait cause of lazy people who think [hey i don't need to work there is enough welfare for me:) Well that is Simply not the case
Yue Miking Since this is probably just a joke comment i am just going to pass it by and continue in saying that Welfare will eventually run out [as it is already starting to run out now]
2:07 if you pay more taxes, you benefit more from reductions, ever heard of proportions?
What is the point of using cereal in the analogy, if they use cereal like money
a bowl full of cereal and how much cereal you want compared to what you have may make for better abstraction than promissory notes of currency tied to confidence in the American economic system.
Boldevin to make dumb Trump supporters pay attention. You'd be surprised how many Trump supporters think this tax bill helps the poor not the rich and I can only imagine that's because they're ignorant. Maybe talking about delicious cereals will get them to pay attention and learn
cereal taste good money taste bad
The script writer was hungry.
Because vox writes for children that have no idea how money really works.
Their going to have to go into debt because of this tax reform?
Guess the people at vox didn't see how much the debt raised under Obama before this tax reform bill...
The government needs to cut expenses.
www.washingtonexaminer.com/record-135-billion-a-year-for-illegal-immigration-average-8075-each-25000-in-ny/article/2635757
Okay but what was the point of the cereal analogy? You weren't using the metaphor to make anything simpler, you just replaced the word "money" with the word "cereal".
Emily Huxley I think the overt simplicity went over your head
Emily Huxley It makes it easier to visually represent and to understand perhaps?
People can’t think straight when dealing with cash. If you say tax break to an American, he’ll immediately think of it as a good thing and not consider that the theirs taxes are responsible to funding the government.
Emily Huxley Because it’s not just straight cash. It’s also property and services. And plus why not, we could change the dollar to Cherrios. We just make it up what the currency is .
Because they couldn't use the bowl and spoon animations with cash.
Could have just used cash instead
Government needs to spend less, not tax more.
Brace yourselves for the people who will say that the 1% deserve the money and you just have to work hard to make it
Ofcoruse they deserve their money. Just as much as you deserve your moneh
teamSAF bmx they don't work equal to their earnings b,
Kurt, I don't know if that is an inherently true statement. You read some of these CEO work schedules and they seem impossible really. These guys tried to do a breakdown:
-dqydj.com/individual-incomes-versus-the-amount-of-hours-worked-in-the-united-states/
-dqydj.com/work-harder-earn-more-2013-incomes-by-hours-worked/
Now, I don't know how the research in the links above were actually conducted, it could be wrong; yet it at least "appears" to make sense. I know for me personally, I am well above the brackets that members of my family are in, yet I am also never around when it matters. While that is a personal decision of mine, I view some of the pay I earn is compensation for that lost time that I can use later. For every CEO that gets a massive 7 or 8 figure bonus, how many got nothing but the boot for making the wrong read or the wrong call? A mid-level manager makes a mistake, the company loses money and maybe there is a suspension or someone gets let go. An entry level employee makes a mistake and its practically expected. A senior-level manager makes a mistake, the company starts having to fight off rumors of instability, hostile takeovers, entire departments are reorganized, and someone gets sacrificed and crucified by the American public for making a call that most people will never be qualified to make in the first place.
How to be part of the 1%:
Be born into the 1%.
Become a successful actor, music star, or sports star.
Win the lottery.
The odds of these are all roughly equal, and your odds of being struck by lightning repeatedly in one lifetime are higher than any of the above.
Tony, even if that were true, do you really need to be part of the 1% to be happy?
I'm glad you used cereal. I was having trouble thinking of taxes in terms of dollars.Getting paid in food? A truly communist idea. Great.
dont be silly there is no food in communism
Zaper there is also no food in fascism because the government has it all
I'm glad they used cereal too.
Mr cuddles442 Fascism is a world view which bases itself of natural order. Being a fascist means you follow the truth, regardless of your own self interests. Opinions are viewed in fascism as to all be equal, as in all opinions pretends to be the truth and that they are all wrong as they are based in ignorance.
Correction I understand but also that means that the government can be “right”, in its saying where all means of production go to the government which is “right”.
Berkshire paid over $5 billion in federal taxes last year.
“And if 800 other companies had done the same thing, no other person in the United states would have had to pay a dime,”
- Warren Buffett
May 4, 2024
Or the govornment could just spend less...
noah walters
But what about the homeless? The puppies? The ["victimized"] minorities? The F35?! My 0200 non prepped open drag strips?!
Spending less isn't an option unless you're willing to lose something.
Malicious Affection if the govornment didn't spends 700 billion a year on military, a lot more than the next 27 countries combined. They need to also get rid of all those freebies, because they arent sustainable.
noah walters but if the government didn’t spend money on the military other countries would get away with much more. Countries like Russia wouldn’t have a looming threat of the u.s and they would go on to continue to do bad stuff like aggression towards the countries that were in the ussr because they need ports
There wouldn’t be a big powerful protector of democracy any more I say we cut welfare to spend less and we tariff Chinese imports to make more money the jobs would come back to the u.s soon we would be out of debt
How about ya'll stop spending $300 billion annually on your military instead?
That's only like half of what it really is lmao
Yessss! Im 6 years enlisted in san diego and we are over paid janitors. Military is modern welfare. Subsidized employment
$600+ Billion
Robert Gonzalez good thing you realize that. I've tried to explain stuff like that to hardcore republicans and they can't wrap their brain around it
I'm hungry now
Cereal is nasty.
Meh. I ate oats.
I'm eating Frosted Fakes reading this. and i disagree ;p
Salokin lol I'm about to go grab some fruitloops
Unless you are rich you're going to stay hungry
The government is already in debt. We need spending reform AND tax reform.
And stop with your nonsense about taxes going towards roads and research. The bulk of taxes go to social programs.
Everyone is fine with taxes going towards roads and medical research, but you can't use those examples because they are so small compared to the monolithic black hole of social welfare programs.
And I would like to keep MY OWN MONEY.
That wouldn't support their narrative if they mentioned the amount we spend on welfare every year lol. I made a response to this video on my channel check it out.
You are naive if you really think you own your own money for real. Real economics laughs at the notion of permanent ownership. Sooner or later you will end up paying for things you didn't even want to pay for. *Cut welfare, and poor people will resort to even more crime and the police will be even more overburdened. Just like Mexico.*
Only fools think government debt is anything like their own debt. At the scale the national debt is at right now, every country in the world is desperate to let America keep its debt. America is the biggest consumer on the planet, and incidentally the most self-sufficient while most nations heavily depend on revenues from exporting to America. If America ever decides to cut back on imports to pay off debt, the world will collapse. Ever heard of the phrase, "If I owe you a dollar, it's my problem. If I owe you a billion dollars, it's your problem."?
You think the Government spends more than it should? Are you kidding me? It's underfunded! Just spend less? Are you 12 years old?
The justice system is overburdened and sections being leased off to private corporations that have no incentive to do their jobs correctly and offer to do things cheaper on the condition of being completely free of oversight, public edducation is failing big time, and perhaps causes idiots like vaccine dodgers to put public health at risk, the funding of new energy technology is being slashed and America will have to pay royalties to use new energy technology other countries will invent first, and America needs to build up its military to meet the demands of its Allies who want America to counter the growing expansion of China and Russia because only Americans have a powerful enough military to stand up against both.
Except we don't spend the most on social programs. Maybe actually look at our budget nimrod.
mrjarrettisbeast maybe you should follow up on your own words of wisdom, you nimrod.
Social welfare programs are not a black hole, they're vital for a well functioning civilized society (a non-social-darwinist one), and underfunded.
The problem is even if they taxed all of everything they still wouldn’t be making enough. By the time I’m done typing this they will have already spent at least a few hundred grand. Probably to a team of unnecessary supervisors that help students with trauma from seeing pictures of Gorge Washington.
Lol true.
Baby Boomers: Taking everything their parents and grandparents gave them while mortgaging their children and grandchildren's futures
Mr. Trump appreciates your simple explanation with cartoons and breakfast foods. I'm sure he will subscribe now.
Cabby Cabby so true!
Na vox has some anti trump vids
lol 😂😂
I love how in the video they bring up debt and act like we're just going into it like we haven't been in debt for years
Jesse Silva fun fact. Since Trump's election the national debt has decreased by $100 billion.
How about reduce government spending so that everyone can pay less taxes? Oh wait, that's exactly what the new bill proposes.
Yep we definitely over spend each year. I made a response to this video on my channel check it out.
Good point but there liberals so they don't understand the real world
Government spending is a tricky topic. Mostly when republican politicians refer to it they mean cutting things like medicare and medicaid, as well as paying less for useful public services. Cutting military spending by even a relatively small amount could alleviate most of these issues, and because the military uses it's money so inefficiently (a report came out in 2016 that around 300 billion dollars of military spending was unaccounted for, no one knew what it went to) the military wouldn't even have to reduce it's size at all. What would be much more useful to the American people than tax cuts or reducing the size of the government, is simply making the government efficient. Other countries have lower spending power per citizen and yet can still have more useful social services simply because they spend their money efficiently, something America really hasn't been good at.
That is not the bills issue, if anything we should both increase taxation, and reduce extravagant expenditure of government funds (let's say 1/4 of the defence budget) allowing for some other sectors te get an increase in funding(perhaps something mental health related)
U Wot M8 thank you
How much s̶a̶l̶t̶ cereal did you buy this year?
- about 7 kilos I think
Yep, there's gonna be a tax for that
OOOoOoh NOoOoOo!
most depressing Minecraft let's play ever
Biggest joke of 2017: Trickle down economics
LeBron Fan Jones And now 2018
don't be a poor wage worker, go to school and contribute like the top 20%
2018*
It was a joke back in the 70's-80's when it was introduced, most serious economists were vocal about the illogical claims of trickle down.
D.P. H Damn. I can't believe I never thought of that! Just don't be poor! Thanks for your help in getting me out of this economic struggle.
Okay, so lets tax everyone more instead of spend less
OMG THESE VOX EDITOR ARE GENIOUS
They are geniuses man it amazes me every time. I made a response to this video, and their tax break video on my channel check it out man.
*You think the Government spends more than it should? Are you kidding me? It's underfunded!* "Just spend less?" Are you 12 years old?
The justice system is overburdened and sections being leased off to private corporations that have no incentive to do their jobs correctly and offer to do things cheaper on the condition of being completely free of oversight, public edducation is failing big time, and perhaps causes idiots like vaccine dodgers to put public health at risk, the funding of new energy technology is being slashed, and America needs to build up its military to meet the demands of its Allies who want America to counter the growing expansion of China and Russia because only Americans have a powerful enough military to stand up against both.
Yeah, like Kansas did: ruclips.net/video/1psnZ11HYk0/видео.html
That’s like say
“Let’s just breath less oxygen!”
tax everyone more equally. If the percentage were equal across all income ranges it would naturally lower taxes for working class and raise them for the wealthy. The tiered system if much to easily manipulable.
when i want to take a scoop out of my dogs bowl he groans at me and bites me if i do.
Oh HELL NO! I'm not letting the 0.01% of America get MY hard- earned Fruit Loops! NO, SIR!
They’re not. All that’s happening is they get to keep more of their own money. They’re not taking from you, they’re just keeping more of their own.
The problem is the "What the government needs". This is completely subjective.
XiaoBai By what the government needs they mean what the government needs to not have to borrow and go into debt. The tax code is separate from the budget, so regardless of what the tax code is and if there is enough money to fund the entire budget, the entire budget is going to be spent, and anything the government doesn’t get from taxes they’ll need to borrow, creating a deficit. So yes, technically they don’t “need” it
“The government won’t be able to spend as much money if they cut taxes!”
Oh no. What ever will we do. I don’t want to keep more of my own money ahhhh
Parker Haines Omgggg!! Like the government totally doesn't need to pay for education and communities and medical. Totally not.
Roberto Jarrin or they cut spending, then you don't have to borrow.
Jew Stein IDK what community is. But they don't need to pay for food stamps, Medicaid, or housing for people. People will get it on their own without government involvement.
Ugh so infuriating. Oh well they're getting the boot this November. Good riddance rite
Republicans want lower taxes and Democrats want higher taxes, both in *_effect_* to achieve higher revenues. If you don't know how that is, look into the Laffer curve. The issue with higher taxes is that there's an incentive for lobbying and seeking out tax loopholes, ultimately leading to lower revenues. There's also the deal with Capital Gains tax, which isn't (considered as) income, per se, and mostly applies to those households that are well off enough to invest in stocks, real estate, etc.
Some propose an elimination of the progressive tax system in favor of a single flat tax across all income levels. However, if the Laffer curve suggests an income tax rate of say 33%, then low income households that are not below the poverty line will be too burdened and will need a separate tax rate (let's say 18% for the sake of argument). There will then be a relatively smaller incentive to move up to a slightly higher income that gets you to that 33% tax bracket, as the IRS will take 15% more of that marginal income increase. This argument continues until you end up with a smaller but still progressive tax system. This ultimately burdens the middle class and has a negative effect on upward social mobility. As you can see, that is a major issue with higher taxes.
You make some good points here man. This video misguides their audience a ton by presenting the data without hardly any context. I made a response to this video on my channel check it out.
You're not wrong. Higher taxes do burden the middle class the most. It could lead to more people trying to become rich and more middle class citizens falling into the lower tax brackets. The middle class could seize to exist.
And libertarians want lower revenues and cut spending :)
It depends on the inputs and other variables...
@@GabrielleduVent
Sweden's corporate taxes are also LOWER than what the US' are, even AFTER Trump's tax cut. Funny that you leave out the facts that there are more tax breaks in those higher tax countries.
Know what corporate tax is here in Canada? 10-15%. Vox cries that cutting US corporate tax to 28% is some evil way to help the rich....and this is why the rest of the world laughs at American media.
I've never understood why the top 1% get so many tax breaks. These people have more money than they could spend in a single lifetime.
Because they influence policy
Money is power.
Campaign donations
Because our politicians are whores they truly dont care about what we the people who only make 20,000.00 to 30,000.00 they consider us trash because we earn so little.
They got rich from producing; creating jobs, buying, selling goods and services around the country and world. Creating an endless stream of job creation and dollars/taxes injected into the system. What do you do?
Can we get a 'why youtube always puts VOX in trending?'.... 'explained?'
Probably because they make great high quality videos that people enjoy watching.
Or RUclips hand picks videos to be trending ... wait everyone knows that is true
DarkStoneCastle duh they dont support trump this has been explained many times
Or you don't know and are just speculating.
Because vox aligns with RUclips's left agenda
I dont want to eat cereal anymore it will remind me of taxes!😁
Anybody watching this now and hearing about how we’re gonna go broke
Good video, but the cereal analogy was completely useless.
Samuel Tunnell so how is it a good vid with bad analogy ?Since the idea of it demonstrating taxes in cereal
Samuel Tunnell it put it into simpler terms for people who struggle with financial and political issues, like me because I get bored halfway through, besides who doesn't like cereal?
Samuel Tunnell so how is it a good vid with bad analogy ?Since the idea of it demonstrating taxes with cereal
it helps visually separate deductions and taxable income. if you kept it dollars, it'd be harder to distinguish the mixture of taxable dollars and non-taxable dollars
Trump would appreciate this.
Probs Trump is watching this to understand more of what he's doing
he understands well what he is doing. he is in that 1% of the wealthiest, remember? he's doing this for himself.
Mandy Raymundo oh you're such a wonderful optimist
Government can't take my cereal if I switch to oatmeal.
1st off, your conversion of money into cereal was wasted when you "pay people with cereal"! 2nd off, with the govt taking less cereal, there will be more bowls of cereal.
*_they be takin our cereal!_*
WhoopsieNoodle steal captain crunch and I steal your loved ones
Obama already did that
Or you just cut the military budget?
Draz'Gul exactly. But with all the enemies America has made by their wrongdoings I can see why the defence budget is so high. But still lol. U got nukes and plenty of strong allies and NATO so I doubt anyone is gonna attack u if u decrease the budget a hundred or two billion dollars
The US may be shitty and their politicians corrupt, but their military (navy) is currently ensuring that international trade occurs with as little disruption as possible, and is the reason that shipping around the horn of africa is even possible.
Twahir Abubakar their is no reason for the budget to be that high. No reason
No reason that you know.
The ones who pay the most taxes will ALWAYS benefit the most from a tax reduction, this is not unfair because the taxes are still the same percentages. The things they say here are true however they say it in such a way to make it look like the rich are profiting, even though they are not
timokanaar you are dumb of course he rich are benefiting you idiot
Hey Vox, you "forgot" to mention that the top one percent of "cereal" earners pay HALF of the U.S. tax burden. Is that "fair". Ok that's too many quotation marks 😬
What is the point of the cereal analogy?
they literally replaced the word money/dollars with cereal, it's not even an analogy
So that slow thinker can catch up
a new way to think about an overly familiar subject. visually stimulating and perhaps will give you a new perspective on it.
Cristiano Ronaldo its an easier animation compared to drawing cons and bills. Less time consumed.
get your lefty stereotypes right: cereal is basically infinite - who's ever worried about not getting enough cereal? but really, how much cereal does one person need?
Why are you replacing money with cereals to explain a tax law? The idea of using analogies in explanations is to make the matter more accessible to people by means of something they're already familiar with. Not only is the choice of cereals completely arbitrary, but money already is the most ubiquitously understood representative of "a thing that people desire to have lots of." Even for Americans.
John Redberg +++
John Redberg they try to make it complicated, so the avg viewer just believes them without thinking for themselves
Yeah, that's exactly what I thought. There's no reason why cereal helps explain this any better. In fact, it seems completely random and just a dressing on top of the explanation, instead of an actual comparison that could be made.
Now, if the cereal were somehow being used to explain how ice floats, like how cereal floats in milk, then maybe that might work as an analogy.
It's satire, you dumbo. It's mocking people who believe in the tax plan by explaining it in "baby words." Of course they know it's less intuitive, but the video is made only to mock the supporters, since the non-supporters are smart enough to understand the problem.
Yeah, but cereal is cute
Came here to say that this is the worst explanation on taxes I’ve ever heard in my life
You lose me a little on all of the cereal speak. I was trying to convert it into dollars.
You could have just used money instead of cereal, that metaphor was completely useless.
QuantumBraced it's more fun
No, it makes the animation much simpler. Vocally, they did just replace money with cereal, but to differentiate the deductions from taxable income and to very simply express their notions visually, that was a plus.
Everyone loves cereal.
QuantumBraced you must be a very fun loving person
It's not a fun subject. It's patronizing, let's explain to these plebs with cereal who can't grasp the concept of budgets.
*gimme your cereal and noone gets hurt*
Does oats count
NO! DAMMIT, TRIX ARE FOR KIDS!!
1:44 No. The government can simply remove the expenses that are paid through taxes.
I got more confused with the cartoon than the actual thing... LOL
I love watching our country fall apart day by day
You have been brainwashed. Do some more reading outside of your echo chamber.
Roger N u can thank Obama for Most of that
Alex Cobian lol good thing trump is putting back together I’ve made tons off the stock market lately
you can thank Bush for putting us through wars we couldn't afford leaving Obama to have to recover from paying off war debt and a recession. He did have his downfalls but he was good in some area's I suggest you read more into what BOTH sides have to say and look at the actual growth rate we saw under Obama. All anyone should want is to see America prosper and Trump and Obama are both trying to do that, but with flawed plans.
God-tier Basement Dweller: You mean letting the rich keep more of their money, right? Just like a Republican - they want services, a strong national defense, etc - but they never want to take the personal responsibility to actually pay for it. They love kicking the can down the road so they can pay off their donor buddies. I'm also assuming you didn't watch the video and summarily dismissed it as fake news the moment you realized that it wasn't a tweet by the world's most famous liar, President Donald Trumplethinskin Racist Jagoff the Second.
I hate America's government
It's in the ...Cereal!
We need...uhm, Checks & Balances. They way we are "effective & stream-lined" through deregulations is going to lead to disaster! I've $10 more dollars in my pocket every year! and have to pay for a bottle of "clean" water every day...thanks.
yes surprisingly they rather have a idiot rather then a person who literally promised to start ww3
Politics I'm conservative, but no one I knew wanted that guy to win (even us republicans). I'm from the south, and we aren't stupid. We just have stupid voters same as y'all
well if its not your government you can mind your business
Politics I hate that people generalize an entire political party because they don't agree with another individual's limited choice of stance based on their personal wants and needs.
the problem isnt taxation, its spending
The cereal analogy confused me more than regular money
You mean to tell me 10% of a million dollars is more than 10% of thirty thousand dollars, outrageous 😂. Let's get MIT to look into this SMH!!!
$3,000 is taking a lot if you only make $30,000 a year. While taking $100,000 from $1 million a year still leaves that person with $900,000 vs $27,000....one of them is still a millionaire while the other still struggles to get by. That's why when you make way more, you should pay your share back to the people who need it more.
CANADAWOOOOOOOOO 1/10 is 1/10 regardless of how you cut the 10 slices.
Alex Raber You're correct but that doesn't exactly matter. The cost of living doesn't change. somebody making 30,000 spends a much larger percentage of their income on simply surviving, whilst somebody making 1,000,000 doesn't even have to think about their cost of living. Is it entirely wrong to (hypothetically) take 15% from the guy making millions, while you cut the people without luxury and relief some slack by only taking 10%?
Personally I think it makes more sense to do things in that sort of way. But that's just an opinion
NerdOracle So you are saying if i dedicate my whole life to working hard and earning a lot i should be obligated to give a larger portion of it away than someone who failed at life and now struggles to get by?
the ways in which a person has found themselves in their present state is hardly relevant.
while i agree that the concept of "punishing" hard work and/or success to "reward" laziness and/or failure sounds absurd, it really isn't that simple
Maybe the US gov should cut spending ?
rodrigopaim82 They are but in the wrong places.
rodrigopaim82 Ya, they should cut corporate welfare and welfare for the rich
and the military.
Some of the spending, like medicaid, medicare and social security are very difficult to cut. it's baked into the law - so reforming it might be simpler?
Mallory Brangan
Cut spending on military, spend more on social security, medicaid and welfare. Then corporate welfare if absolutely necessary.
taxes do not "pay for" government spending
Can you explain long division in cereal? How about string theory?
And/or we could stop spending 58% of our budget on military. That would help.
Alexander Hoffman Oof, that number is way off--that number (58%) came from a meme usfederalmafia.blogspot.com/2016/05/my-new-government-memes.html. The real number is at around 22%; still a big chunk of the US Federal Budget in my opinion, but most of this money is mandatory spending that goes to service members' salaries. www.usgovernmentspending.com/year_spending_2018USbf_19bs2n_30#usgs302
Lawrence Yamomo No, 58% refers to congressional discretionary spending. It's not a meme, it just doesn't account for mandatory discretionary spending, which I think is totally reasonable.
Alexander Hoffman and lose ww3 nah we need military because ww3 is on its way
Saying spending without saying total spending or discretionary spending is misleading. The military is about 600 billion a year but social services are like over 2 trillion and in the next 15 years its projected to be our whole taxpayer budget. That has to be reduced as well as the military to decrease the deficit.
Why? Because. 58% did not come from a credible source. I looked through all official and credible websites indicating that military spending is at 58%; unfortunately, only blog sites and meme sites showed that number.
The website I cited in my previous comment may not have clearly pointed out discretionary spending or mandatory spending out of the total spending, but it does show the categories in which the money was spend on (Veteran's, foreign aid, etc.) implying that mandatory and discretionary spending make up each number. The official source puts military spending at 22%.
Waiting for the comments trying to explain trickle down economics actually work
abisz007007 uhh sorry I'm not very good at economics and barely learning much at school but could someone briefly explain?
No economist uses the term trickle down. It’s just a pejorative the left uses to attack supply side economics which they dislike. The
Left prefers demand side or kensian economics. If you are interested in the economic philosophy the right espouses look up supply side economics. If you type in trickle down all you get is a leftist eco chamber attacking an idea that no conservative economist supports...a convenient straw man.
A quick example of what supply side theory says: did the iPhone created by Steve jobs create the demand for iPhones or did a demand for iPhones already exist and Steve jobs filled it? If you think the former that’s supply side. If the latter demand.
Mark Kim No. Trickle-down economics is the idea that lessening the tax burden of business owners will result in them increasing capital investment in the economy and growing their businesses because they spend less tax money and thus these tax burden decreases will "trickle-down" to the middle and lower classes by producing more jobs and higher incomes in a more prosperous economy.
The thing is, it doesn't work. Lessening the tax burden on the upper class has never been an effective way of stimulating economic growth and it is taught in universities as a false ideology that has been disproven time and time again. The republicans still support it though; if you turn on any republican newscast you'll see a slew of "support the %0.1 business owner :,( because they couldn't buy 20 supercars this year, only 15 #whatHasThisCountryTurnedTo" and people eat the same regurgitated false bullshit with the belief that it will actually help them.
Very well put, Trey. Trickle-down, while not an "official" economic policy, is certainly well understood by this point and should NOT be conflated with supply-side economics (which is also a disastrous concept - it works well in a vacuum, but fails completely in a limited planet full of imperfect humans). The idea of wealth "trickling down" is one of greatest con jobs ever perpetrated against mankind.
I don't understand the ending. Why don't the rich ppl have a proportional change in their tax cut in the future? Wouldn't we just change the percentage taken from consumers to make up the debt? This would mean that we would take more money from rich people and each category will change the same and if poor people end up paying more so will rich people
unless it's in the bill to change taxes just like in the video in ten years
The new US tax law...hmm, BOOORRRING! Ooh, wait a minute, CEREAL! 😃😃😃😃😃
Freedom toons have debunked your tax videos multiple times.
i love this channel there are many info channels on youtube but till now of all the channels i have come about vox is the only one where they explain issues relates to current affairs, today's economies, science and historical topics and the background voice is excellent too. keep going guys
You also have to be careful. I watch vox and they leave so much out of the picture, including this video.
yes true but atleast they make an effort and if you try and include more info the video becomes longer and then if it gets past the 5-6 mins mark most people don't wanna watch
But you don't have to leave all of the positives out of it.. In the beginning of the video the talk about "tax loopholes" like they are negative. The loophole they specifically talked about would have been the person who sold the house wouldn't be taxed if he bought another house with the money... So he won't be taxed if he puts the money back into the economy. What's wrong with that?
Nilay Chaturved most people would rather watch an informative video that's 10 minutes long with all of the facts than a 5 minute video with only some partial facts....
it's all about compression people today don't have time thus they wan't more and more info in less and less time
Geez, I still don't understand why you guys pay taxes in cereal.
They're always after me Lucky Charms, until all I have left is Shreddies :(
I pay mine in Trident Layers..
Enthused Norseman Americans... It's the only way they'll understand.
Could you just explain it with money, the cereal analogy just made it even more confusing.
No the government doesn’t need more.. they need to spend what they have correctly and not waste it
This was poorly explained in many aspects and the cereal analogy was completely unnecessary. Just reading through the comments I got a better understanding of what the bill was.
TheMaestroChannel No, you didn't because 90% of the people down here don't know what they're talking about
Why? Because. Completely agree but a few were able to describe the bill, its implications, alternatives and a lot more much better than this video. Theres a lot of comments pushing their political stance and a lot more from people with no knowledge on the subject but that's why this video was so dumbed down
"no knowledge on the subject"
"got a better understanding"
is that a joke?
wrong comment section m8
I know the bulk of the video was just explaining how taxes work and not the bill they treat us like we are stupid
This animation was hilarious
I agree… I thought the little dude that jumped into the serial looked suspiciously like Ted Cruz
The nurse when she wasn’t given cereal
Keep your filthy hands off of my cereal
So let me get this straight. Republicans want the poor to pay more, but when the poor ask for help, the Republicans say "No. Help yourself."
People can be confusing.
Millennials need their news in a Sesame Street format.
Hahaha!
i don't know about that, i would say even the President would have a hard time figuring out this toughie !
It was also Millennials who MADE this video, which means they understand the topic to a level good enough to explain it in a simple way. Also, they care that people of all walks of life understand it. Not so sure previous generations cared that much for this.
I want to live in a world where cereal is the sole currency.
I think the main thing the video misses is the closing of loopholes to broaden the base mostly helps the richest earners. Take for example the SALT tax reduction, that loophole closure effects many middle Americans. But Republicans didn't change any estate tax loopholes or capital gains loopholes which benefit the super rich
This did not age well.
Or the government uses less cereal 😐
@GummiVulture
That would be a valid solution but what would be cut? Social welfare programs? We're already basically last on the list for western countries in terms of social welfare so cutting it even further is just giving an even larger middle finger to the poorest group. Education? I don't even need to explain why this would be terrible. Infrastructure? We need to spend money on infrastructure first. Government funded research? Again, not something I should ever need to explain why this would be a terrible idea. Military? Ideally yes, but do you actually believe people would ever agree to cut down on military spending (even though we're obviously spending WAY too much on it)?
So yeah, telling the government to spend less isn't the best idea. Though to be fair, giving them more money to blow on barely functioning multimillion dollar fighter jets isn't exactly the best idea either but at least there's the hope that some of the money actually gets to the places it should be going to.
Turning the country into United States of failed Kansas
ruclips.net/video/1psnZ11HYk0/видео.html
Any why is it so bad for the United States to cut funding on welfare and why is it important that we stay high in the list of countries that steal the most money to fund welfare
If we cut down on military spending wouldn't a lot of people in that field lose their jobs? A lot of technological advancements have come because of military research and development.
This video has some good information in it, but you don't think it is a tad condescending to your audience with that "cereal" analogy? I mean even you drop the analogy a minute later going back to using money, and don't really show an advantage of why it is being compared to cereal, deductible or not. It is ok to use big people words like "income".
McLamborghini you over estimate the intelligence of everyone as a whole. We can understand it without cereal. But to some they can’t. Or maybe it’s easier Incase some younger viewers can understand as well
Personally, I think they did it mostly because it's easier to animate brown and purple cereal in piles. I really don't see how their belittling the intelligence of their viewers by using it.
I can understand that to make it easier to animate. Just personally I think the way they used it in here was not the best. I am all for using good analogies to talk about bigger concepts. Such as the video a little bit back when Vox talked about depth of holes and digging with literal shovels when discussing the tax plans of the various Presidential Candidates in 2016. In that they took advantage of what people understand about holes, depth, and used it to explain debt. Cool. Here however, it seems like they just simply swapped out the word "income/money" for "cereal". There wasn't really anything inherit about the concept of cereal that seems to make more sense than money.
I guess if in the end it does help people understand, then job accomplished.
It's really just an aesthetic thing, I don't think they believe that animating it with cereal will aid in understanding, more just by using cereal the concept seems less daunting and a bit more disarming.
That simplistic analogy is a good clue as to the main demographic of the vid. You don't want to use scary words like money and income when explaining a fact. But when you are giving an opinion feel free to use any words you want, if it facilitates your ability to implant a view point.
Lmao this sounds like the perfect theft plan ever.