Is The IRS Finally Taxing Rich People?... Well Sort Of
HTML-код
- Опубликовано: 19 мар 2024
- 👉 To try everything Brilliant has to offer for free for a full 30 days, visit brilliant.org/howmoneyworks/. You’ll also get 20% off an annual premium subscription.
Sign up for our FREE newsletter! - www.compoundeddaily.com/
-----
My Other Channel: @howhistoryworks
Edited By: Svibe Multimedia Studio
Music Courtesy of: Epidemic Sound
Select Footage Courtesy of: Getty Images
For sponsorship inquiries, please contact sponsors@worksmedia.group
Sign up for our newsletter compoundeddaily.com 👈
All materials in these videos are for educational purposes only and fall within the guidelines of fair use. No copyright infringement intended. This video does not provide investment or financial advice of any kind.
#tax #finance #investing
-----
Last week the IRS announced that they would be going after one hundred and twenty-five thousand [125,000] Americans who according to their records earned over four hundred thousand dollars [$400,000] a year… but didn’t file tax returns.
The result of this activity could be worth as much as one hundred BILLION dollars as Uncle Sam goes after people who haven’t paid taxes since 2017.
This is great because everybody should be paying their fair share, but, if the IRS knew these people were cheating the system, then… why has it taken them so long to finally do something?
The IRS may seem like an all powerful bogeyman but the reality is that the department is underfunded, undermanned and having to make tough decisions about what kind of work will deliver the greatest return on its limited resources.
The IRS has continuously been defunded by politicians on both sides of the isle. Simultaneously the tax code has become more complex allowing sophisticated filers with high incomes from multiple sources to file deductions, offsets, credits, exemptions and deferments on their returns. The only way to fully verify these filings are being made correctly is for a trained tax agent to assess them individually but the IRS just doesn’t have the manpower to do that, so for most complex returns it has been accepting the honestly of the filings.
The IRS simply has to make budget decisions based on what is going to give them the greatest return on their investment and that is by going after easy targets. According to a report by pro publica a person earning twenty thousand dollars [$20,000] a year is now more likely to be audited by the IRS than someone earning four HUNDRED thousand dollars [$400,000] a year.
The Earned Income Tax Credit has been a particular focus of the department because it is a bonus paid to people on low incomes that is simple to claim when filing your taxes.
BUT if the IRS audits your claim it’s up to YOU to prove that you did legally qualify for this credit.
The maximum that a single person can earn to qualify for this credit is just seventeen thousand six hundred and forty dollars a year [$17,640]. This range extends up to sixty-three thousand three hundred and ninety eight dollars [$63,398] for a married couple with three or more children. If you qualify for this credit, you will not have the time or money to fight an audit so the IRS knows you are likely to just give up and pay them what they tell you to. Within the department this means that Earned Income Tax Credit audits have the highest likelihood of success which is why they continue to focus on them.
But if IRS staff are already spread so thin, instead of focusing on getting back a few hundred dollars from millions of poor working Americans, surely it would be easier to get back millions of dollars from just a handful of rich people right? Wrong. The recent announcement that the IRS will be going after non-filers with incomes as high as one million dollars [$1,000,000] a year might sound like a step in the right direction, but there are three simple reasons why it has taken so long and why it’s unlikely to achieve what you hope it to achieve.
So it’s time to learn How Money Works to find out why it took the IRS so long to finally go after millionaires and why it probably won’t change anything.
👉 To try everything Brilliant has to offer for free for a full 30 days, visit brilliant.org/howmoneyworks/. You’ll also get 20% off an annual premium subscription.
Religious leaders and politicians should be charged with back taxes💰... For better financial future you have #TDBank💳... 🌎💘💰
Who cares. The elites have endless bank accounts she'll corporations tax loopholes for offshore businesses they can report their income in. And so much more.
All IRS does is do nonsense to make the public think they are doing something. Same with DOJ. So much stuff they let slide through, but once in a while they will take down some elite to make us think they uphold rules
why do you think the left is so adament to keep illiagals around because there rich donors can then hire are lower wages and keep same profit margins while they ensure it loooooooks like they are doing somthing :D alll in a bid to ensure the rich are held under a thumb with no wiggle room to fight back.....
This is why they hate elon he has money and does not align nore is he conforming to what they *THINK* HE SHOULD THINK..... LOL conform to the hive or else.....
Why exactly does the govt want to save money by cutting funding from the dept whose job it is to collect it?
Vid covered it. Who is funding the politicians and do they want taxing the wealthy as a priority.. no they do not
Because the politicians doing the budget cuts get "generous donations" from the uber rich who benefit from an underfunded IRS
Possibly because of lobbying - it’s not so much that certain people in the government don’t want IRS to tax people, it’s that they don’t want IRS to tax THEM specifically (or whoever they are representing)
Also as another commenter pointed out, not liking the IRS is a popular point. Taxes as a painpoint is applicable for all classes, so a "we can 'save money' by cutting from that department you don't like" is a quick way to both garner support and functionally not have to accomplish to much since their budget is minimal compared to the big items on the feds budget
Legal bribes to both parties make sure of this.
The IRS could probably make a lot more if they closed the Art Donation tax loop hole
Donation loopholes are very commonly used
Or... Y'know... All loopholes...
How do you propose they close this loophole?
make donations not tax deductible. Use that tax money to better fund FEMA or other services.
Y'all stigmatize too many legal strategies as "loopholes" because y'all can't pull it off. 😂
The thought of retirement makes me cry. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you weren't to blame for.it's especially difficult for people who are retired.
True, It has never been easier to understand how to build your money after retirement than it is right now with the inflation, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investments, in my opinion, are complex.
The less money the govt gets, the more money U get, and U treat Ur $ with respect.
So "sort of" is a huge cop out answer when the answer is "no, not the rich, just people who have somewhat high income because they own a small business and don't have the resources to allocate to jumping through every tax loophole that bigger businesses and corporations have lobbied to give themselves and hire tax experts to ensure they use those loopholes correctly."
I say make tax code so complicated average 15 year old knows it by heart, then it will be a free market
On the other hand, hire more IRS agents and have them do the taxes and submit a breakdown with most of the work done and you can submit some form of change request if you have additional deductions or a special situation
@@nicholasesakson4121 “Those who are taxed without their own consent, expressed by themselves or their representatives, are slaves.”
They are not "Loopholes" they are built in features for certain people to exploit. They written into the tax code to be exploited on purpose. The loophole bullshit is just smoke to make it sound like they are clever enough figure some mistake in the code. Then our shitbag representatives can act like it was some mistake.
The less money the govt gets, the more money U get, and U treat Ur $ with respect.
In this country it is better to be Guilty and Rich, than Poor and Innocent.
It's incredibly ignorant to assume someone who is "Rich" must also be "Guilty."
@@TheeGlocktopus Fortunately, that was not OP's assumption
@@hybbfr727 So then make "Guilty Poor" and "Innocent Rich" work in the same context... You can't. The whole statement is a projection of their binary ideology. Boils the entire country down into two classes: Poor/Rich and quantifies them as Innocent/Guilty, which no consideration the other way. Rather nihilistic.
@@TheeGlocktopusThe binary is an oversimplification, but it does have truth to it. White collar crimes are not punished as severely, and those wealthy and influential enough are advantaged at every step of the way. Better lawyers, judges will give them lighter sentences, and their influence can be used to delay court proceedings or compromise investigators. It shouldn’t happen, but it does happen.
@@TheeGlocktopusOP never said there isn’t rich and innocent or poor and guilty people. You just clearly have some emotional attachment to dicussing the topic that is clouding your judgement
This is completely the fault of Congress
Well I mean you've gotta choose fair people to to write laws that cost them money, and politicians aren't fair, they're just.
And the people. The people don't like to hear that the IRS is getting more money, because they then think "I have to pay more taxes!"
Basically, any fault of Congress, is the fault of the people for electing them, allowing them to stay in power etc. Don't just push away your own responsibillity to the big bad boogyman that nobody likes.
Congress, the body full of millionaires and billionaires who have lots of millionaire and billionaire friends. In other words, it's the fault of the rich.
@@BrotherHood-xh9sgExactly, well said.
@@BrotherHood-xh9sg True, but sometimes people don't know the full details of the people they are electing, since people can be elected under false pretenses like George Santos.
Wait......What??...... It was my understanding that the IRS has no statute of limitations......Your tax debt follows you all the way into hell.....
Technically there are several statutes of limitation. The one you are referring to is that the IRS has no time limit if you never file a return or if it can prove civil or criminal fraud.
I think it's that if they find evasion for example from 2019 but the trail goes back even further than it's fair game. But if the evasion ended prior to 2017 you're ok (in the sense that they're not looking that far back).
No Statute of Limitations on Fraud.
They tax your salaries, but they dont tax capital gains like your investments. So if you own 51% of a company, they dont tax the profit you get if you grow that company.
@@barnacleboi2595capital gains are also taxed at a separate rate
The insanely over-complicated US tax laws need to be drastically simplified. This would simultaneously close loopholes and make conducting audits much faster.
Yeah but won’t someone think of the ultra rich who suffer because of that?!
US tax system is basically instead of taking most all of the tax from one source they spread it out and tax damn near everything
Ultimately, though, tax laws are one of the main ways the government can direct private enterprise. Want people to donate to charity more? Let them write off part of the donation on their taxes. Want people to spend more money on improving technology? Create tax write-offs for R&D reinvestment. Want people to start businesses? Let them write off expenses. Want people to have kids? Give them a credit for it. Want people to support lower carbon transportation? Give them a credit for buying an electric car. Want more renewable energy installations? Add a credit for installing solar panels.
Tax laws are kind of where the rubber meets the road for any attempt to steer private people or company actions.
@@natefortuna1940 TL;DR: Yes Taxes are good in general, but the abilities of corporations in America are actively *murdering* our economic and cultural futures.
I can see how that plays a role in society and government, but its being so blatantly abused. It would be one thing if the give and take was somewhat balanced and businesses were prompted to invest in the good of the country/community. But its just used to quite literally make the rich richer and the poor even more poor, all the while every piece of this country (US) is falling into fewer and fewer hands.
And the laws are less and less representing the citizens interest in favor for corporations who then pay lobbyists to pay politicians to keep the cycle going. These are things that have been highlighted time after time after time after time after time after time
Nobody has been able to effectively challenge that level of capital influence in America's law's and policies.
#EndLobbying #End2PartySystem #EndCongressStocks
@@Gentelmenghosttaxes are not good in general… they are a necessary evil that should be minimized when possible. Sort of like eminent domain and imprisonment, necessary but not good in general
Five percent of the tax code is how much you owe. The other 95% is how to get out of paying it.
It's really disheartening to see how far the system goes to protect the rich and make life challenging for the average citizen. As highlighted, these loopholes need rigorous scrutiny. It's ironic that the department tasked with getting people to pay their fair share is underfunded and understaffed. Hopefully, changes will be made to address this imbalance soon.
That would happen only if the US was a truly democratic country, while it's a country where the 1% is so powerful they can convince average citizens to vote against themselves.
Trump is the best example of someone who pushes for rich people's interests, but is voted by poor and marginalized people, who are victims of their own ignorance. (To be fair, voting democrats would only prevent things from getting worse, not actually improve them from this perspective)
Democracy is unethical if it's forced.
A free market is a voluntary democracy.
It's better.
It's made by them and for them, nothing new.
@@theMichaelMelo Democracy is politics, free market is finance. Don't mix finance and politics.
Democracy means to give equal political power to each citizen. A free market is financial anarchy, where who is strongest (has more money), tramples and exploits the weak.
A true democracy balances the free market by ensuring that everyone has equal rights, even if they have different possibilities due to their different financial status.
It is possible to have a democracy with a free market, but if politics are following the market, then politics are following who has more money, and that's not democracy, but anarchy.
And anarchy is actually just a dictatorship where the strongest gets their way.
The US is very far from true democracy. If you believe it is a good thing, I think you are either rich or have been brainwashed to fight against your personal interest.
I think the best model is democracy with a free market, and I hope we can get as close as possible to that. Nordic countries in the EU have many problems, but they are the closest to that, while the US is gradually walking in the opposite direction
One important point that you did not mention: Some of this issue is of the IRS' own making. It is not just rich people who don't want the IRS to be funded. Everyone who is from the working or middle classes who has had the IRS go after their earned income credit has a valid reason to be holding a grudge against the IRS. Most of their friends and family do as well.
Both political parties defund the IRS because defunding the IRS is popular. Defunding the IRS is popular because of how the IRS operates. Going after contractors and tradespeople will make this problem worse in the long run. When your plumber cannot show up to fix your toilet because the IRS is harassing them, then the IRS harassing your plumber becomes your problem too.
Great point
True. Ironically, by both the rich and poor defunding the IRS, this perpetuates the cycle of how the IRS operates in a negative way.
I wanted to add this point. It’s unfavorable to fund the IRS because they’ve spent their time hitting those “easy targets.” And it’s hard to believe that they will mostly focus on the rich even after the funding.
I have no doubt in my mind that they will hire more staff and implement technologies until the revenue is in the negative again then go back to the regular courses of action. They need to prove they are for the working people
@@pajeebruce5393Obviously any gubernamental institution lack human empathy, so instead of focusing in the work for the people premise, focus in the gathering of capital and have an incentive for doing so, imagine if you tax bezos and can have a small fraction of the pay, would you rather tax 1000 people for way less revenue? is it perfect? no, but at least you can gather a bit of trust and funding until you actually have a fair system.
@@CoronaryArteryDisease.That's why it's better to defund and shutter the department entirely.
Because ROTH IRAs are tax-free, you'll be able to keep more of the money you've worked so hard to earn.I want to invest more than $300k, but I'm not sure how to go.
Consult a fiduciary counsellor; these professionals are among the best in the business and offer individualized guidance to clients based on their risk tolerance. There are undesirable ones, but some with a solid track record can be excellent.
For you to grow your portfolio in today's market, you really need to be coachable and willing to get off your high horses. I for example, have managed to grow mine from $150k to 300% of my initial deposit within the past 8 months just by copying trades from a broker that has better skillset and technical know-how than me.
I won't pretend to know everything, though. Her name is Amber Angelyn O'malley but I won't say anything more. Most likely, you can find her basic information online; you are welcome to do further study.
Just follow investment plans of Sucessful people, but do it yourself instead of giving others control of your money.
If you don't know anything about Stock Market but whats to dabble into it, just Buy everything Nancy Pelosi Buys, and you will average a Return Rate of 20%. There are plenty of Social Media Group on Twitter, Facebook, or Reddit that tracks what she buys because it is Mandatory Public Record.
She isn't the BEST investors to follow, but got the more attention, I think she is only ranked in the top 20 last year, there are quite a few other congressman who beat her.
They are not "tax free". They are funded with post tax dollars.
Maybe if the government is so worried about government spending, they shouldn't spend over $800bn on the war crimes department every year...
I know people who file every year and pay their taxes they owe, but recently got a notice of failure to file for multiple years and heavy fines along with it. Their tax advisor said to just pay to avoid more penalties, and fight later. Guilty until proven innocent when it comes to the irs. Just insane.
That would sound like their tax advisor is a liar. That doesn't make any sense at all. And the IRS says you haven't been paying your taxes. Then you have to pay the taxes you supposedly didn't pay in the past plus the penalties. The only way that would happen is if the supposed tax advisor kept the money and never filed it.
They need a new tax advisor, because no real tax advisor would ever give you that advice. Your friends are being scammed and their tax advisor is in filing. It's very easy to prove you paid your taxes.
Then they didn't file I worked for the IRS for years we have records of all of your documents. They probably got audited and realized they owed for back years or even worse the CPA didn't add all the income even worse than that Identity theft it's RAMPART! make sure to file E file as soon as possible no not by mail that crap it's jacked or stolen all the bloody time! This includes checks always send it online it's fast and efficient!
With the video game analogy, I can finally understand what’s going on.
Except that's only somewhat what's going on. It's more small business workers who have a more complicated tax process than the average american, but without having the income to hire tax experts like bigger businesses/corporations.
Should be noted that NOT filing your taxes and filing taxes in a way go where you owe nothing are two.very different issues that are conflated in the beginning
Gotta get that clickbait
@@zacharysilver911 it sounds like the conclusions and explanations are correct here, but that setup is not as well developed
I was audited in 2003 as a 24 year old single mom that made less than 20k. They said I owed them $2500. I never did understand how that could possibly be correct, but of course I couldn’t fight it and it took years to pay off. I’d never imagined I could feel so betrayed by my country.
That's fucked up
Did you use a tax service that gave you too much of a child credit? People also get in trouble claiming children depending on the arrangement with their ex. Some just trade off the dependent deduction every other year.
@@KLondike5 I had 100% child custody and filled out the tax forms myself. I was honest and followed the instructions on the form. The form seemed straightforward when I initially filed, but the IRS explanation for their audit findings made no sense to me at all. Felt like extortion. Worst thing is that it impacted my ability to care for my son during a hard time.
Edit: I was also getting zero child support.
That doesn't make sense, you didn't Even make enough to pay income tax. Were you working under the table and not paying social security or Medicare or something? With that income level and kids you should have been getting a ton of tax credits and zero tax liability. This story makes no sense, are you sure you weren't scammed?
@@underleft I had a 1099 job that year. Definitely was the real IRS. They withheld my tax refund in subsequent W-2 years until the 2500 was paid off.
That IRS hiring problem is seriously f--ed up. You need a PhD in order to be a PT employee making half as much as anywhere else? Yikes.
Actually a lot of people get hired for the entry-level positions without any college level education, and the pay isn't bad at all, it's just that it's competing with the private sector which has more flexibility for attracting talent.
Did anyone else think the video game analogy was a sponsor ad LOL
Everything on RUclips is a sponsor ad
kind of ironic the government cuts funding to their source of income... its almost as if taxes don't actually matter to them...
Does anyone actually believe that the IRS is going to have a lot of EA's or Accountants that can go at the level of the rich? The OF models are going to be the easiest targets.
" The OF models are going to be the easiest targets."
Pun intended?
In the spirit of American capitalism IRS workers should be paid via commission like salesmen. Quants would gladly come from hedge funds to work at the IRS to squeeze every last penny out of the rich tax avoiders if they got a percentage😆
Honestly, not a bad idea imo. Extra incentive at no cost to the average taxpayer
And if the person fought it in court and won, would the IRS agent still get a commission? Because we have a right to dispute taxes owed in court. It isn't as if the IRS has the final word.
This commission idea would cause agents to go after people that haven't the money to fight it in court. It would encourage the agent to file claims against as many poor people as possible.
The rich would fight any claim by the IRS tooth and nail. That's why the IRS doesn't go after the rich; it's so expensive. And as the video said, 20k incomes are more likely to be audited than 400k for just that reason. The poor can't fight back. They'll just pay.
Therefore, the poor would become a good target for IRS agents to get their commission.
Taxes are a scam. When will yall learn
Why would I do that when the richie rich will pay me more than the commission?
@@jamescaldwell2357 I'm sure they could figure out a payout structure to discourage claim spamming. Have failed claims work against the payout and successful ones for the payout then just figure out the appropriate formula.
A critical tax strategy used by the wealthy that can benefit the middle class is the use of tax-advantaged accounts and investments.. It's amazing how many people miss out on potential savings simply because they're not aware of all the deductions they're entitled to. One thing I've learned over the years is to keep detailed records of my expenses throughout the year, so when tax season rolls around, I'm prepared to take advantage of every deduction available to me. It takes a bit of effort upfront, but it can result in significant savings in the long run.
Every person in the top levels of government makes enough money to not want the IRS to bother with them so that’s why it’s received so many cuts. I wonder what the ROI on money spent on the IRS is for the U.S. government. 🤔
According to the treasury, the estimate is $6 to the government for every $1 invested into the IRS
Yes and no. Politicians actually have surprisingly low salaries (not low compared to most people, but not absurdly high either), but the problem with that is that it puts pressure on them to supplement their income at the expense of their integrity. I would argue that this is by design.
The CoD callout is correct, thank you for the relatable content
The answer is for the IRS to contract Private Auditors for tax evaders who that can’t afford to pursue. A 30% commission still allows the IRS to recover 70% of the taxes, and doesn’t need Congress to betray their donors/masters.
That is actually not a bad idea... Although those people would be hated to hell and back on top of being highly easy to buy but hey! Still a nice idea...
That can be somewhat inaccurate about the filing and pay penalties. The rule is (when no fraud is present); "if both the failure-to-file penalty and the failure-to-pay penalty is due, the failure-to-file penalty is reduced by the amount of the failure-to-pay penalty."
Seven year statue of limitations has an exception. If the IRS can find something in the last 7 years, they are then allowed to go back and look as far as they want.!!
I love that politicians have been selling that cutting a revenue center is a way to save money. It's obvious what's been happening and who has been telling these politicians to cut this department.
I love that the IRS is underfunded and understaffed. Maybe they'll simplify the tax code.
Fairness should go both ways. If rich people don't pay taxes, I shouldn't have to pay taxes as working class. It might also solve the Military Industrial Complex problem.
No, you should steal from them not yourself.
"or, if you are playing a good game"
oh, the shade.
activision would like a word
If your a billionaire then you have many, many connections in business and government who want to make sure you stay rich. Any "taxing the rich" schemes are halfhearted, watered down and provide dozens (if not hundreds) of loopholes. Beside, any real costs will be passed down to the lower tiers of society. It's more likely the IRS is going after middle-class people - easy to intimidate, basically honest and have limited legal resources.
Most probably the reason why MW3 doesn't ban cheaters is because they don't have the money, games cost 200 million to 300 million USD to make and are sold for 70 USD, the publisher gets around 18-30 USD of that and most gamers don't buy games at full price
Do your maths, the gaming industry is killing itself, all the issues with 'lazy developers' and 'microtransactions' and 'broken game released' is because there is no money to hire more people and there is no money to optimise the game and there is no money for anything and no one wants to take any risk because one failed video game means that the studio will go bankrupt
Edit: the average American is a millionaire (12% of Americans)
You can always count on the government to do the right thing... After they tried everything else.
nah man. IRS should create an “Algorithm” to “independently verify and check” peoples tax filings.
it works well for youtube.
Hilarious
I do find it odd that our legal system is innocent until proven guilty, but our tax system is guilty until proven innocent.
Was reading an article recently, all top 5 pharmaceutical companies reported loss in US except Eli Lilly.
They reported more income overseas compared to US.
But most of their revenue was from US.
In some countries, the tax filing is handled by the government. Painless and simple. An entire industry built in complexity and cheating would disappear if we did the same.
But then how would people cheat?
That is only true for basic wage earners. Someone who owns a business still has to file taxes, because it requires information the government does not have.
The IRS is the government…
If they're gonna use AI for something it should be to audit rich people's taxes.
The IRS is already one-step ahead of you on that, although, new legislation like the "No AI Audits Act", which is being introduced to the House by Congressman Clay Higgins may put a pin in that.
Simplify tax code.
People have been screaming this for years but they labeled as “socialist” and “communist” and dangerous to democracy. Now everyone is like “hey guys, I think the rich is not pulling their weight” duh!!
I learn less about How Money Works and learn a lot more about how screwed I am when I watch these videos 😂
Honestly? True. I just now unsubscribed. Thanks for the suggestion.
@@exeggcutertimur6091 I didn't suggest that. Better to know where you stand than be willingly blind 🤷
@@exeggcutertimur6091 that's like finding out that someone is pickpocketing you and you decide to just close your eyes and let the thief take the loot.
Free info g weather it’s how it works or not your learning . Gratitude is involved in wealth
That's true; There is an immense appetite for doomer content which this channel happily provides. There are actual helpful channels out there for people looking to be smarter with their finances.
The more byzantine the tax code, the more it costs to optimize your taxes, and the harder it is to go after any but the most simple (read poor) cases.
There's a reason why a flat tax would never happen. And it sure as fuck will never roll back any of the very, very profitable holes that were intentionally put in.
The tax brackets are not the complicated part of the tax code. There are only 7 tax brackets and the tax code has thousands of pages.
There’s no reason why a person who lives in poverty should have to pay the same tax rate as someone who makes millions of dollars a year.
when the rules are unfair, enforcement is injustice
It is almost as though they're in kahoots or something!
Ironically, though painful thru the whole process from funding to dealing with the fallout, if we fully funded the IRS to the point that they could go after absolutely all the cheats simultaneously and sustainably, mandated them to do that exactly, and also mandated them to make it easy to file taxes for everyone in the first place, people would start fully complying with the law.
Or just, you know, quit stealing peoples' money at gunpoint?
@@oneproudbrowncoat I would question your understanding of the words stealing and peoples money with a statement like that. Pay your taxes.
@@jimk8520 Taxation is theft. And I'm not subject to your questioning.
If the government already prints and spends insane amounts, why does it want you to pay taxes? Because of greed
Lobbying from TurboTax and filing software companies are the reason why we have to file in the first place.
This in-depth analysis of these very complicated returns and filing it through the insane tax code seems like a perfect task for AI. And I say that as a huge AI skeptic.
There are probably automated systems already in place to detect anomalies. They are not Chat-GPT-like, but as an AI-enthousiast, I think that them not being generative would be an advantage
There potentially could be data privacy concerns
Me, after asking chat gpt what 2 plus 2 is and it tells me 5 and argues with me about it: this thing can fix the tax code.
When you think gpt is THE ai 😂@@j.reinholme
@@alexp6013 This is a great take -- why create an AI for interpreting tax forms and detecting anomalies when this can already be more accurately and quickly done by regular computer programs using mathematics and equations! I wouldn't want an AI hallucinating that I paid too little in taxes.
🤔where do corporations and rich people get the money for paying taxes?
Oh 😳 they raise prices.
@@martincagle9226 that and to say the corporations don't pay taxes is to completely ignore the foreign tax credit process that is used to help with trade between nations.
@@tonycrabtree3416 they pay all the taxes which they are required to pay or they would have consequences, unlike the big guy.
@@martincagle9226 It’s weird that some people are mad at individuals or corporations that use the tax code to the fullest, especially knowing that they use it to the fullest themselves.
You are right we should remove all taxes, that make sense.
So thier going after 1099 earners, just a couple years after making any gig worker or people who used the wrong app setting to send thier friend some money file a schedule C.
They made thr system so complicated that now the IRS can't even figure out how is it being used.
You should've looked more into the LB&I group they audit usually bigger companies and from the salaries I've seen for someone with 5 years experience it's equivalent to what accountants are paid in firms with that same level of experience
Up in here!
You have these comments on speed dial?
@@HowMoneyWorks naw fam you are just one of the only channels that I have all notifications on!!! 😂😂😂😂
6:40 to get past his ad
The EITC is subject to a lot of abuse. I have a job where I see tax returns. Married folks claiming Head of Household and then splitting the kids to get EITC they don't qualify for happens way too much. Folks claiming "nieces" and "nephews" that aren't related to them and that they don't live with. And when you ask them about it, they blame the tax preparer. 🙄
Of course, there are EITC mills around the country stealing millions of tax dollars.
I will say the IRS has gotten a tad better at identifying EITC fraud. But alot of people dont even know the EITC exists and how much money is involved so there isn't a ton of attention on it.
4:30 that reference was for me.
As long as there are ANY exemptions or loopholes, this shit will continue. Flat tax is the only way to keep those bastards honest.
Flat tax has nothing to do with exemptions or loopholes.
Flat tax would still mean they pay nothing, since most don't make income. Nothing would change in this situation, however, a flat tax should be implemented for the rest of us. As it stands, 40% of Americans paid no income tax, which means the other 60% of us are footing the bill. I shouldn't be paying 24% while someone making 45k a year doesn't pay any income tax and gets thousands in free tax credits. Everyone should pay a flat percent no matter how much you make. If we did that, nobody would have to pay more than 5%, and filing would be brainless.
@@underleft nobody's talking about welfare leeches in this vid were talking about billionaires that funnel all their money into pet projects "charities" that just make them richer
@@epicvids9557 lol flat tax means x% and everybody pays it with no loopholes
Nobody sane wants flat tax...We want no loopholes for these people who take from society but cannot give back
I pay close to 50% income tax but a company that makes millions pays under 3%
This flat tax nonsense is another ploy that rich tax abusers try to push
If you got wealthy thanks in part to the freedom, safety, and stability provided by the gov’t, you must pay your fair share to keep the system going. It’s as simple as that.
Good news everyone
I mean this is still pretty exciting news considering no one thought this would ever get fixed.
It seems like AI will be very effective at helping the IRS auditing tax filings.
They would have done it already.
You guys don't understand that your advocating for your own demise when you ask for such things. First of all taxes are a scam. If it wasn't then there would be no poverty in your country, everybody would be prosperous.
By advocating for taxes much less tax infrastructure upgrades you are saying 'hey I have chosen to be stupid for as long as possible, respect my choice' where then a bureaucracy says 'sure just keep paying us those taxes'. It's suicidal.
And don't think your vengeance is left unseen, all is seen before The Most High. He sees how you hold vengeance to those who have more than you do, granted that some of these people may be selfish, that doesn't shake the fact that vengeance belongs to Yeshua, The Holy One, just and pure to enact it.
But you? Not a chance, you can't enact vengeance without you feeling the kickback from it. It is written that pride is what comes before destruction | Proverbs 16:18
I’m a big fan of taxing the poor as well as the rich. If the poor are taxed they get a lot more interested in how the money gets used. This is pretty damn important in a democratic society. Otherwise demagogues just tell them “the rich will pay for it” and they get lulled to seep.
The IRS loves med to high earners getting a check. You're going to pay total tax rate of 30-50% with everything considered.
Or just simplify the tax structure. The simpler it is the harder loop holes are to find and they easier it is to enforce
Imagine if the government taxed private jets instead of gig workers -_-
Do you think buying a private jet is tax free?
@@JanisFever Yes it actually is owing to depreciation.
@jghifiversveiws8729 Sales Tax.
@@jghifiversveiws8729 No, it isn't. Purchasing and operating a jet is not tax free. And gig workers should be taxed like everyone else.
The real reason people don’t work trades is bc IRS policy shifted in the early-mid 2000s and went after small business
That is not why 😂😂
Uh, who wants to work in the heat, cold, rain or shine and get paid…..*checks notes*….$15 an hour to break your back versus sitting in a chair, in a conditioned office making the same or more?
Hey man
Love the channel and the videos
But could you make more videos on concepts and explaining things?
I like how you breakdown concepts and illustrate it to make it easier to understand
I’m not in the USA so a lot of the videos lately have been irrelevant to me
Hope you can find interesting topics to breakdown soon
Take care 😘
"The IRS has been defunded by politicians on both sides of the aisle."
Well... Since we only have capitalist politicians, there's effectively no "aisle". Their interests are thoroughly aligned.
The aisle is not communism Vs capitalism
Universal Basic Income now. (EITC is good, but this highlights a huge problem with it.)
#TaxationIsTheft
Thanks this video.
I've been wondering just who the IRS is gonna go after and it makes sense to go after 1099 people. Their taxes are much less complicated then the real rich so easier for the IRS to audit. However, it's complex enough to make it hard for some independently employed person to do on thier own and they are highly likely to mess up.
Or just not really keep good records of expenses and estimate them.
Sigh
5:05 visual... ROFL!
Rich people will always avoid tax. They can afford it. However, the poor can't. Any tax increase on the rich will just fall down to the poor.
Edit: I replied to lots of comments and I realized that it might lead to like 10 different people writing walls of texts and I dont have the time for that so im just leaving some thoughts:
Having lots of people saying "oh so dont tax the rich then? Or how about you set the tax specific to people earning over a certain amount?" 1) that is the current tax code, doesnt work 2) no im not saying dont tax the rich 3) It will fall to the poor because (as he said in the video) they're easier to tax and the government at the end of the day just needs to meet its sepnding needs. They will go for the poor when the rich are too difficult. 4) If you want to tax the rich you can't do it at every twist and turn that they (and generally everyone) makes. Its usually a bunch of shit that you get taxed on, not just your salary.
The easiest solution is to tax everyone less and make it easier for people to get rich and just in general shorten the tax code.
People don't realize that the 1% is not a select group of people permanently but people that move in and out of that group constantly. The oligarchs at the top only remain at the top through regulation and friends in government. You cannot regulate them away. When government gets into business, business will get into government. You have to compete them away
exactly. and the rich swears the poor people are the problem.
So no increase tax for the rich then? That sounds dumb as fuck.
This type of
Thinking perpetuates the status quo rather than working to fix it…
@@Docpeetee your dumb.. you clearly didn't watch the video.
@@Docpeeteewho's the one paying for legislation? Just do a flat tax, no complicated tax code that has tons of loopholes
I swear the MF idea of a flat tax across the board at 7% would solve the issue of tax dodgers, because it’d be cheaper to just pay the damn tax.
The premise in the title is wrong. The IRS doesn't pick and choose who to tax. Taxes apply by statute, automatically.
So this increase in IRS budget will basically increase the taxes the federal government brings in by 1%-3%. Cooperations and wealthy people won't see much of an increase in tax either way because the root of the problem is not being changed!
Tax evasion is the duty of every Patriot. If the tax code has loopholes it is evil to not seek out these loopholes.
Very simple solution to this problem, no income tax or property tax. Move to a consumption based tax system and then the irs wouldn't be nessary as an agency.
You do know who is behind the push for sales tax. The CIA/FBI as it means records that can be aggregated. Buy load of M-16 or AR-15 you have to declare the purchase for tax reasons. If you don’t open shut felony case.
who makes sure people pay the consumption tax?
Say goodbye to our infrastructure
What a shit take lol
It used to be like that before ww2, but they added the income tax to help with the war effort and never got rid of it
Did not expect a game hacking ban wave analogy 😆
You know, you should do a video on the video game industry, in particular the controversy surrounding consulting groups like Sweet Baby Inc. I would love to see an economic angle of this.
Land of the free is just a joke at this point xD
Kind of sad when you think about it. The migrants are fleeing their countries to come here instead of staying in the paradise of Mexico. (sarcasm)
And of course RUclips censored my comment. What did I expect, that RUclips was a proponent of truth?
The other question is if the government deserves all the it says we need to pay.
Tax cheats add to debt that ultimately gets paid by citizens via taxes. If you pay taxes and someone cheats and doesn't pay then they stole from you, not the government. You're the one who pays that bill. So the real question is: Do you deserve that money?
i applied for job at IRS.. was told clearance would take about 6 months. got different job
Interesting that I see this video now, because this night I calculated for over one hour how much of an impact globally in the tax system it would have if we tax the whole one percent of the rich people correctly. And it was a measly 3 to 4% Off more available tax money
How are they being taxed incorrectly? You can't compare the normal Joe's income tax with somebody who has multiple assets and businesses. They aren't at all the same thing. Rich people with a lot of assets get taxed plenty.
Even if they somehow managed to legitimately tax the rich, the additional revenue would just be siphoned into the defense budget.
IRS is overwhelmed by the rules they make
I wonder if fair taxation of wealthy corporations and individuals will have an impact of inflation, public services or wages? Would be a cool follow up if this is a trackabke trend.
The first thing that needs to happen is the tax code needs to be simplified.
I’m all for defunding the IRS
I'm starting to think it's best to get rid of the IRS.
You just started to think that?
7:58 The analogy of saving gas but losing income from job is great lol
I love the stealth shade. That's because you're playing modern warfare.... However, if you're playing a GOOD game ...
The more I learn the more I realize how important proper funding is for our government agencies.
All of this could be avoided if there was a flat tax and that's it, no brackets deductions or other bullshit. Then would be super easy to audit too.
This is why there is a whistleblower system. If a large corporation actually makes millions from tax evasion, a whistleblower is given a portion of the taxes. My bet is that for the most part, the taxes are correct, but they use legal loopholes that the corporation forced to put in place
Before I started studying how economics work I would have never said this but I'm on the side of the IRS. I'm a firm believer that my generation makes jokes about tax evasion not because of a hatred for the IRS itself but for where the money goes and the fact that we barely have any to begin with. Our problems aren't with the IRS itself but rather everyone else around the IRS.
Tax cheats like 10% for the big guy?
No not them.
How about trust all filings under 100k, and checking everything else?
10:46 I didn't know electricians use bypass pruners
There does appear to be an initial premise here that giving money to the government is good.
Unfortunately, that is where you lose me. The government taking our money by force and threat of jail is a bad thing. Let the people keep as much of their money as possible, and drastically reduce the size and complexity of the government.