How Do Your Tax Dollars Get Spent?
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- Опубликовано: 9 апр 2019
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Remember when you received your first paycheck at your first job and the amount was a little lower than expected? Surprise! Some of that money was already spent for you. Have you ever stopped to figure out exactly WHAT is being bought with all that money you send to Washington each year?
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Two Cents was created by Katie Graham, Andrew Matthews, Philip Olson CFP® and Julia Lorenz-Olson and is brought to you by PBS Digital Studios. We love dropping some knowledge on all things personal finance and helping you make better money decisions.
Two Cents is hosted by Philip Olson, CFP® and Julia Lorenz-Olson
Directors: Katie Graham & Andrew Matthews
Written by: Philip Olson, CFP®
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SOURCES:
www.politifact.com/.../pie-cha...
www.cbo.gov/publication/52408
money.cnn.com/.../how-are-tax-...
www.fool.com/.../5-shocking-f....
www.usatoday.com/.../average-...
www.nationalpriorities.org/.....
www.nationalpriorities.org/
smartasset.com/taxes/income-t...
I appreciate the existence of tax breaks but navigating loopholes feels dangerous. How can I ensure I'm taking advantage of tax-advantaged investment structures without potentially encountering unintended consequences?
Loopholes can be tricky, but there are plenty of proven tax-advantaged structures. IRAs and employer-sponsored retirement accounts are great options. You can also explore tax-efficient investment vehicles like municipal bonds or index funds. These offer benefits like tax-deferred growth or tax-exempt interest. Talk to your financial planner about these options.
Yeah, planners could make a lot of difference, particularly in a market such as this. Bonds are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are a lot of wealth transfer in this downtime if you know where to look. I have been using an FA since 2020, and I return at least $30k ROI, and this does not include capital gain.
I find your situation fascinating. Would you be willing to suggest a trusted advisor you've worked with?
Her name is “Sonya lee Mitchell” can't divulge much. Most likely, the internet should have her basic info, you can research if you like
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
The US government doesn't have a problem with revenue; it, however, has a big problem with spending.
Amen to that...
@Dumbo Octopus first, fix our spending. The USA has more than enough money for now, why give them money?
Agreed
MILITARY PORK BARREL IS WHAT CONGRESS IS ALL ABOUT. THEY ARE
SCREWING AMERICA.
DEMAND CHANGE
DEMAND ACCOUNTABILITY
VOTE FOR CHANGE
finally, an accurate use of semicolon
Please explain how tax returns work next. I know a lot of people still are confused on why some people pay taxes and others collect them. Thanks in advance 🌸💕
To make it simple, as you work your employer take some from your pay check to pay taxes and at the end of the year when you do the tax return they will calculate the actual tax you have to pay. If you have to play less than your employer has taken out you get some back and otherwise
Agreed! Showed a few people a video on the subject from the channel Knowing Better, which encouraged them to change their dependents and gain more per check vs a refund year to year
"some people pay taxes and others collect them" - Not sure what you mean here. Governments are the only ones that collect taxes. Maybe you are wondering about why you sometimes get a refund at the end of the year. That has to do with how much is withheld in each paycheck. The IRS site has information about with holdings and how to fill out the W4 form if you search.
I’m still confused by it. I paid like 4K in taxes and got like 8K back. This happens every year. Just because the system is working in my favor doesn’t mean I can’t say it’s stupid.
@@daves9396 either you gave too much to the govt. That year, or you have a couple kids. I believe 1 kid = $2,000 credit.
The science and education numbers are depressing :(
Fennecfoxfanatic Very true unfortunately
This
Just wait until you see Arts funding.
Not really, most research is done by state funded public universities. We actually spend too much on research an education.
@@jacobschweiger5897 "We actually spend too much on research an education." The fuck? Listen we never spend to much or will ever spend to much on this subject it is also the most important one and very underrated compared to the others. The potential is enormous and with it it will benefit all the other programs that our taxes go to.
60% of Tabitha's tax bill goes to insurance programs, but she still has to pay for her own insurance. Great system we have here.
That's because the government can't effectively run it.
System is a scam
I never knew 60% of what we pay in taxes goes to health insurance that we can't use.
Who else would pay for it? It just is what it is, someday your kids will be doing this to keep u living while u can no longer work same as everyone else bc who else is gonna pay for ur life
@@ElPepe-qe2ir We are talking about health insurance, not old people benefits.
anyone else notice he crossed his fingers when he said "...just like tabitha will." at 2:20....yeah
Austin Selman yea we are so screwed when we get to retirement 👴👵
That's because he knows that the way the social security program is structured right now is not sustainable, but he doesn't want to get political, so he just crossed his fingers as a reference to it.
Bwahahhaaaa! Good One ! Thanks for pointing it out
Old age and disability benefits will be there if we tax annual earnings above $132,900, the FICA max in 2019. Remember, the Republicans are trying to destroy the benefits program, so they're spreading panic about the benefits not being there for currently young workers. Remember, if your grandparents and parents don't get Social Security and Medicare, you may have to stump up some of your money to help them.
@@rolandtours8404 All taxes, fees, and park passes, and anything else given to the federal government go into a single pool of money. It is then divided out to each department and line item on the budget.
The top 1% of wage earners in the US already pay over 37% of federal income tax. What more do you want from them man?
You should make a comparison video with Canada's tax system
That would be a good video but I doubt it will happen
They aren’t a channel to get political
@@Gavanater7 what's political about where tax money goes?
@@rayman-wt6sf One side will say less money should be spent on welfare and the other less money on military. How it should be spent is very divisive.
@@Excalibur2 money should be spent on taking care of others and less on military. Nothing divisive about caring for others versus supporting frivolous conflict.
All this money to Healthcare and still no solution.
It's definitely frustrating!
It's because the American Healthcare System treats disease, we're not tought how to prevent it in the first place.
@@leslie6385 outside of exercise and a proper diet, what else can you do? wash your hands... don't become overweight... most health problems are fairly unpreventable.
Health care should be canceled..
ScarletNight on the contrary most problems are preventable. With lifestyle modifications. But crazy Americans will shout BUT MAAA FREEDOM M!
what if people could have a bigger say in where their tax dollars go?
Goverment would not be wearing such nice suits lol
We do, it's called voting
@@CybertroninfiniteOfficial it would require a new system of voting which is more specific
During filing taxes they should use tracking Ids to show where the money is actually spent. Also there should be upvote and downvote buttons showing our consent.
@@TON-vz3pe it’s inevitable but we’re still using outdated systems because if it was truly a democracy of where tax dollars were spent certain groups of people and companies would no longer be granted exorbitant amounts of money at the taxpayers expense. We need to push for those changes ASAP or else it’ll be decades before that’s implemented. We have the technology to do so, and if we could choose even a portion of where our taxes go that’s true democracy. Also maybe a better system of auditing/tracking where tax dollars are spent so we don’t have more scenarios of the Pentagon claiming they can’t account for TRILLIONS of dollars for example
Great Content. The amount of Financial Awareness i get from this channel has definitly changed my life view. Im just starting my life but I'm starting off good. Just 17 years old
Keep making good choices and you'll make it
Nezar, start investing as soon as possible to take advantage of compound interest. I have my own channel to teach people about money 💴
@@ChrisInvests THIS!
same
Me too
Two third of income taxes to healthcare and somehow americans can't get universal healthcare... Well done X)
Alystas it’s 66 percent my guy what do ya expect 100 percent l?
Why we should let a free enterprise create and decrease prices
@@blackgold754, Two thirds and 66 percent are the same thing (if you're not splitting hairs). And the person is not questioning the amount but rather the fact that, with that kind of percentage, healthcare shouldn't be where it's at right now.
Point blank: this video is theoretical and our money is spent on many things we don't know about.
@@TJ-oo5mx nah that'll increase prices
That's cause the private sector ALWAYS does it better.
"The money our government collects in taxes...belongs to all of us."
Therein lies the problem.
Why is it then that they tell us where we cant and can go???? Too much power to the goverment if you ask me
That’s why it blows my mind Democrats trust the government
Aidan so you would rather trust corporations than the government? I think something’s wrong in your head
@@5people829 At least corporations are straightforward and don't act like they're on your side and then stab you in the back later on. That's government for you
Like Enron?
paying so much for the military, that's so sad, should be more focused on science and school
We have to have our wars
@@johnmitchell2741 suure
School is paid by the state and not the fed.
Dwight D Eisenhower warned everyone, but Americans blindly believed LBJ and Nixon. Ever since then defense contracts go $$$$$$$$
Science yes, school no, the school system is rigged
I like how you crossed your fingers at 2:20 when you said Tabitha will enjoy SS benefits someday.
The amount going for education and science is laughably low.
As a percent, yes. As a dollar amount, we are still spending many billlions.
@Just another Bird According to www.citylab.com/life/2011/10/worlds-leading-nations-innovation-and-technology/224/
The US ranks 6th in the world for GDP % devoted to R&D, which means it spends the most in the world since our GDP is so large.
US ranks 7th in researchers per capita
US ranks 1st in innovations with the most patents per capita in the world.
No. The government has no right to be in the business of education nor science (except military and police tech). History shows that no matter how much the budget rises, education doesn't get better. That's because nothing is competing. There is no market. There is a single monopoly called "public education" rather than schools competing with schools for the best education they can provide for the best prices. Education is not a right. It's a service. The government is there to protect rights; not provide (bad) services.
Perhaps if your education had been better funded, you'd have been able to make a compelling argument.
@@ellencoleman4604 it's not a matter of funding. The education budget is the highest that it has ever been and nothing has changed in terms of the amount or quality of what is learned. More like it has actually deteriorated. Money doesn't solve problems like these.
1:17
I think you just failed to explain tax brackets. Individuals don't get taxed 70%, only the money above the threshold do.
your right! a lot of ignorance and just pure misconception around the topic of %age. people think that the entire income is taxed 70%
Not only that, even among the super rich, most of their income isn't 'earned income,' its capital gains from businesses being sold and gains from stocks. Those have even lower tax rates because the rich can afford to lobby to keep those rates low.
@@Excalibur2 : Capital gains taxes are not low just because of lobbying, they are also lower than income tax because it makes sense that they are lower than income tax. Lower capital gains taxes attracts investors, and investment helps the economy.
@@randymiller1610 Yo you deserve a high five and here take my wallet.
@@randymiller1610 In some forms, yes. In others, no. If a company's stock doubles, the company itself gets no money, so it's not like it's able to invest more in the business as a direct result of it's increased stock value.
*Tabatha has exited the chat*
and moved to Canada, *eh*
To pay even more tax.
Policemen, trees, sunshine, and let's not forget the folks who just don't feel like working, God bless 'em.
Mildly ironic this is video is supported by Audible (owned by Amazon) who is notorious for not paying taxes.
Amazon does pay taxes. Hell have you ever bought anything off there? Usually there's a tax fee.
@@anthonyrymer4391 You do know *you* are paying the sales tax, right?
If course Amazon pays some taxes, but their tax rate is extremely low, just like many mega corporations.
@@anthonyrymer4391 you mean YOU pay sales tax on Amazon....
@@dosadoodle oh my bad thought the tax fee wasn't only for me but Amazon too. Hmm about only mega corporations not paying as much taxes well they do employ thousands if not millions of jobs think 40%+ of all peeps employed in the US work for them.
@@anthonyrymer4391 What about the other 60% of companies and the people they employ? These companies and people have to effectively cover the taxes for the mega corporations that don't pay up, so they are paying up extra to cover the unethical behavior of mega corporations like Amazon. If you're someone who's thinking about starting a small business that would employ other people, how might this tax-shift change your mind?
The very next video the RUclips algorithm has lined up for me is titled “How Amazon Paid $0 Federal Income Tax”...
The fact that military spending is sooo much higher than education and federal systems combined is ridiculous but explains a lot about the country.
The only thing the US produces are weapons which they sell to other countries.
Education is funded by states. In take the money the states spend on education we spend more on education than the military.
The military is the principle role for the federal government, everything else should go through the states where we are closer to our politicians and have a stronger voice on how our taxes are spent
Is there a way we could get a downloadable infographic of that pie chart shown during Run the Numbers?
I found some interesting ones by Googling "pie chart how federal taxes are spent", and going to "Images". They vary though. Some don't count FICA, and focus only on "discretionary" spending, etc. Some are more detailed or less detailed than the one shown in this video. Strangely enough, most were for 2015. I'm not sure why.
680 Billion Dollars in US Military per year. I wonder where my money goes? 🤔
To the military 🤣
They recently spent 800 billion on a space army.
2:19 I love how you crossed your fingers there
Thank you for making this! What a wealth of information in a short video.
There’s a reason Philip crossed his fingers when he said “Tabitha will collect her FICA when she’s older too”
Yeah we might not have that when we’re older considering the state the fica fund is in right now(losing money rapidly from all the retirees living longer than previous generations)
It’s because Tabitha might die before retirement.
That doesn’t matter, Workers are constantly workforce and gdp are pretty high. Meaning low unemployment, thus more money for ss and Medicare
When you couldn't find oil in the moon so you space exploration elsewhere. $39.78 well-spent Tabitha!
This was so neutral. Good job on keeping politics out of the topic and just giving the facts. I had no idea so much money went to healthcare and social security. I'm not upset about it at all, it just gives context to what our tax dollars are used for in a very unbiased way. Listening to people scream about how much money goes to this or that can be very confusing. This gives a different perspective as to what it looks like from a tax payer's end.
Lol u like paying all ur money to health care u can access lol. Nope gotta live in debt with health insurance u pay for 😂
We should cap income tax at 5%. With all the other taxes out there, we pay more than our fair share. If the government can't deal with that, it needs to be slimmed down.
Can you give an example of a developed country that uses that 5% as the cap?
I found a Wikipedia page that lists most of the worlds income tax rates:
en.wikipedia.org/wiki/List_of_countries_by_tax_rates
The first country that uses 5% as the Individual income tax rate? Gabon, followed Guatemala, Indonesia and Palestine. Perhaps you should move to one of those fine countries.
I agree with you that government spending of our taxes is sloppy and unruly. One of the biggest increases in modern history was Donald Trump, who increased the annual military spending from $646B in 2017 to $731B in 2019, an increase of 13%, far outpacing inflation. Trump also has had 2 major Coronavirus bills (one in May and December of 2020) that totaled $3.4T, increasing our national debt by around 15%. No doubt you hate that guy. To be fair Biden has both increased military spending and has spent over 1 trillion on COVID too. But something tells me you only care about what the Dems do when it comes to the debt.
But even if we did have a good spending budget that wasn't full of unnecessary luxuries, 5% is far too low of a number. Just read the Wikipedia page if you think I'm lying. That is unless you think Palestine is one the greatest countries in the world.
I got the US military figures from:
www.macrotrends.net/countries/USA/united-states/military-spending-defense-budget
@@coolsimpsons I hate any politician who increases our tax burden. We need to vastly decrease government spending. It will never happen, but having a few extra thousand dollars a year for low/medium-income people would make a big difference (especially when much of that is being wasted by politicians). If people would just stop being evil, we could shrink our military and dissolve the ATF and other government agencies and save many billions of dollars every year. It's just very frustrating that I have to pay excessive taxes because of other people's problems.
@@pyrogun1839 I don't doubt it would help families to have extra cash. It would increase the GDP and strengthen the economy. That said, no civilization in the history of the world has existed without some sort of tax system. I think that in modern times an income tax rate of 5% is too low for a developed nation as the United States.
When it comes to the spending tax revenue, there are really only 2 things that matter a lot:
1) Military spending
2) Entitlement (Social Security, Medicare, Medicaid) spending
Really everything else pales in comparison to those to things. I looked up the ATF, it had a budget allocation of $1.2B for 2018. The overall budget for 2018 was $3.4T. So the ATF accounted for 0.03% of the 2018 government budget, a very paltry amount. That's not to say there isn't inefficiency in those agencies, every bit does help. But it would just be similar to switching to a cheaper pair of socks and then expecting your unpaid for Ferrari to not be repoed with the sock savings. You better save quite a bit on those socks in order to pay for your Ferrari.
Honestly most of the focus on slashing government spending should go to Military and Entitlements. In my opinion, the military should damn near be halved. It would save a ton, close to 20%. Of course each item in the defense budget needs to be gone over with fine tooth comb, but do we *really* need to buy 10 ships that cost $13B?
www.defensenews.com/naval/2020/10/14/the-us-navys-cost-estimate-for-its-new-frigate-wont-hold-water-analyst-predicts/
Those ships, only a small slice of the overall Military budget, make up the budget for the ATF *ten* times over. And something tells me the US wouldn't immediately collapse without those 10 ships.
Switching to a cheaper pair of socks (defunding the ATF) will save some pennies for you, but if you want to save the big bucks we need to go after Military spending and Entitlements. That's just being practical.
One of the best RUclips channels I follow! Keep up the great work! :)
Thank you so much for this video!!!! I had some idea- but not in that detail. Good job!
I wish we had a UK version of this.
I always struggle to work out when NI contributions reach or change thresholds. I can never accurately work out at the end of each month what my net income is going to be.
This is the question we all ask ourselves 🤷♂️🤔
Yes!! I've been waiting for this video!!:)
Spending in health is great, but why not solve the problem of overly expensive healthcare, like who is making all this money from overly expensive health care
I wish we could be able to select where we want our income tax money spent on, even if just a portion of it. It would be a good way of letting the people decide what they really want to pay for. It's cringing to see how much money goes to Defense and Military vs Energy, Science and Space Exploration programs...
I agree. I want $0 of my taxes to go towards the military...
Which is why voting is so very important not only in presidential years but in the midterms
Unfortunately, economics will tell you that this cannot work. The government can't allocate goods based on who pays for them and who doesn't. Let's say you don't agree on military spending, the government can't say lets make sure you don't reap the benefits of defense and only the people who pay for it can, because as long as your in America you are being defended whether you pay for it or not. Too many people would decide to pay into programs that are in their own interest because they would still benefit from the military from the other people that decide to pay for them (basically freeloading), but because too many people would have this mentality the Military would go underfunded.
In a perfect world you can vote in people who's spending is more in line with how you want tax dollars to be spent but that is another issue.
@@maxheadroom1207 I agree, this would just close one loop hole and create another one. I think a compromising balance would be to allow tax payers to choose where to allocate maybe 20-30% of their taxes, and leave the other 70-80% up to the government. And youre right, its not like we can just boycott all defense programs and exclusively fund any 1 program. My idea was more focused on giving some power back to the voters, to the tax payers. Having elections every 4 years with little to no input on the politics happening during those 4 years can be chaotic, as we have seen. It would also let the people show to the government what they want to spent their money on, and then it would be up to the government to decide whether to allocate more resources or not. Just enough to have a voice over the matter, but not to have absolute control.
That's would be a real democracy
Oh, thank you Government for pillaging my paycheck. I have two different perfectly healthy neighbors that haven't worked in the last fifteen years due to me and my government continued generosity
I feel like I have financial mentors, THANKS 2.5 CENTS FAMILY!!!!
We should all get a say in how it is spent just like giving $1 billion to Ukraine
And people still think our money's going into the system and infrastructure... with all the poor infrastructure rating and lack of healthcare/tools we pay our tax dollars for... we should question what the hell our gov is using it on. They've been repeatedly caught in their own lies on live tv, why should we trust anything they say? They say we spend more on welfare than the military. Did you know they recently created new toys that cost billions/trillions? Not to mention "foreign aid". I'm so sick of all the lies and thievery
Amazing and informative video! Thank you.
Thank you for this. People need to understand these breakdowns more for more informed voting.
thanks for making all these great videos about money
" A fine is a tax for doing something wrong. A tax is a fine for doing something right."
Where all your money go from taxes mate? Dolly: Health care,Defenses,Debt, Programs with Labor, Vets, Food, and Goverment
Can you do a video on what you can do during high school to prepare you for college and real life expanding rent, bills, car’s/ car loan things things like that btw I love your channel I learnt so much here keep it up🙌🏽
imagine how many better things can the US government can do by not spending/spend less on the military industrial complex 😕
Only 13% of our federal budget is spent on our national defense, while almost 70% is spent on social programs....
@Jacqueline Crone that i can totally understand and commend the US government for👍. i hope everything is well with your family :)
however, there's still another 6.5% of the budget allocated for other military related purposes. and if the US government still want to wage wars elsewhere *(not in their own country, but in other people's country 😕)* , wouldn't that lead to more families to support in the future?
and i also pity the innocent civilians and their families that get caught in the middle of a war that the US fights in. i know a soldier has no say to where he gets posted. but i do hope that the US citizens will vote for politicians that are less "militarized"
@@TimothyWNugent i watched the video too you know😂😂
i know the US government had a shutdown a couple of months ago, and it only cost 2.4% of the tax budget to keep it running (according to the video), wouldn't it make more sense to keep the government running then to pay for weapons that most Americans wouldn't even see/touch/use?
from an outsider perspective, it seems like weapons are more important that people's livelihood.
please contact your local politicians to not accept lobby money from the military,which is *legalised bribery*
im not educated in US politics, i get my news from youtube, which is the least favourable newssource, but im just a curious outsider. because whatever the US do, it affects the world
@Jacqueline Crone i guess we are on the same page :) 😊😊 once again, i hope the future is bright and everything is well for your family
@@MarkWTK The government shutdown had nothing to do with income, and everything to do with republicans vs democrats politics. Democrats promised Trump a few billion for border security in the budget, but he felt that wasn't enough, he refused to sign the budget. Democrats refused to increase the amount. After a few months go by, Trump folds and signs a budget that spends even less on border security than the original did. Democrats win the game of chicken. Not only that, but 90% + of the media only blame Trump, and not both parties like they should.
I love how he put “just like tabitha will some day” in air quotes
You guys are awesome. Thanks for your channel.
Thanks for the breakdown! You guys make taxes fun. :)
super helpful video. thank you!
This is awesome! Thank you for making these educational videos!
Please make a video on how our School Tax Dollars Get Spent! (for Central NY). I do get break down for the property tax, but nothing from school. The money they collect for school tax, makes me think our small village school is made of GOLD!
I know science and education didn't make up a big portion of the national budget, and I was aware of the top 3, but I didn't think it was quite that small.
If I were making the budget I would probably allocate a bit more to servicing the nations debts, and try to get it to a point where at the minimum it's not getting bigger. I'm seriously worried about that.
Very nice video. Very needed and appreciated like a lot of the rest of the videos you make. Could you please make one about tax brackets and the difference between the bracket you're a part of and what you end up paying? Most people don't get that and 70% brackets seem unfair because of that.
Hey Oren! Yes -- we JUST shot a video on progressive taxation and explanation of brackets. We're excited for it!
We have actually!!! It's coming out soon!! : )
Thank you! You two are awesome! Good luck with the little one! Mine is almost two.
I love you and pbs.
Self employment tax, 2x FICA
4:29 Indeed my comrade!
As always ...Educational :)
First of all, thank you. I had no idea.. I currently don’t have health insurance and this hits so hard for me. Was hoping to get something back this year.. but yeah..
You guys are amazing and so interesting
Wow he had to cross his fingers when he said "Just like Tabitha will someday". It's that bad, he knows just how screwed the pension system is. As a young person, I am not happy with this garbage pension system that anyone with knowledge has to resort to wishing upon a star that it will be around in some form that we don't just get stuck with a bill with no to little benefits.
That’s a good question, another good question is who actually oversees the allocation of the tax money
Great stuff again. Can you do a video on the pros and cons of buying shares? A lot of financial advisers don't actually advise this. Could you clear this up please - you always make everything so simple and clear!
What do you mean shares? Individual stocks? You clearly could benefit from doing more research. Individual stocks have much higher risk than funds.
@@Excalibur2 Yes but there are some benefits such as passive income. It works for some people, not others. Worth looking in to.
It was so cool to see where the taxes go! I don't pay taxes, but my parents do and it is interesting to see where that money goes! It not only helps other people but also influences us!
NPC comment
Doesn't matter who it "helps" it's still stolen
If i robbed a bank it would help some of the people I know and would help the businesses where I spend it. But it’s still theft! This video is wrong because income taxes can’t even pay the debt from all the wars we’ve been sold
In other words it all goes to the central bank families!
Total federal income is around 5 trillion per year. Our debt right now is around 40 trillion and rapidly growing. Although I t’s honestly worse than this. This system intentionally misrepresents the facts so it doesn’t look as bad as it is. You’re witnessing the collapse of empire. History tells us this happens to all democracies. Most lasting around 200 years and that’s basically where we’re at now
Excellent.
Dr Milton Friedman would argue the efficiency of government. And rightfully so, since he prosed more effective ways. I highly recommend to read his book free to choose or at least watch his lectures on RUclips.
Knock knock
Who's there?
What do you call a pyramid scheme run by the government?
Social Security.
Pay in, and hope it stays solvent long enough to pay you when you retire...
For those not in the know, social security used to be a much lower rate... they've kept increasing the rates since the program started to keep the system from falling over. But you can only do that for so long...
That's mostly because of the Boomer generation and people generally living longer lives than they used to.
You're statement is true, but without context, I'm afraid it may give the wrong impression.
@@CharlieDBrown That is definitely true, as are slowing birth rates as well as stretching gaps between generations as people delay having children. Generally, those who have paid in have never paid in enough to cover the benefits they take from the system and depends on an ever-worsening outlook for those who enter the system later. The funds from the late "investors" also are used to pay out the benefits of earlier "investors" in Social Security. That is the definition of a pyramid (or Ponzi) scheme.
What portion goes to corruption, public sector union extortionists and ineffective failed programs? Just because the money went to the Parks department doesn't mean its getting you a park.
You should make a video on warrantys
Excellent breakdown guys
Very good!
It goes to the Military Industry Complex, Corporate Welfare thru subsidies, and Social Security. Kudos.
Nice to know only a small portion of my tax money actually goes where I want it to
Thanks Uncle Sam
As a 23-year-old paying into social security I highly doubt I’ll benefit from it when I retire.
How is this? I'd love to know
Interesting!!
Hmm very interesting 🤔
Still don’t trust where most of it goes haha
LOL. It's all 🧢
Don't forget about tax cuts for billionaires.
I don't have a problem with taxes. That's fine. But if you've seen how the government spends - they waste the money.
I love you guys!
In one of your last videos you explained the concept of FIRE and that if you save a lot you may can retire early.
I would love to see some numbers on how the woman who makes 40k a year. When can she expect to retire. The problem I see here is that she doesn't have a lost to save up which slows down her gain in money which again effects when she can leave work for good.
I did not see the video but i guess for bailout and military spending?
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can somebody please explain the calculations on how they got to tabitha having to pay 7038 in federal taxes?
dont understand how to get to that number.. thanks
This was one fucking great video!!!! I always wonder where those two goes when I see my pay stub. And you guys broke them down to little pieces!!! Awesome job you guys! Keep it up!!!!
You guys should make a video on how people have always avoided high tax percentages. Increase the percentages-more super rich make less on paper..
Hahahahaha very funny video... Government helping people with my money ? I laughed a lot.
Because government knows better how to handle my money and my life than I do.
Yes... Right 👍
Your mustache is the best.
Great explanation but not the case here in India 😔
Plot twist: the first 50% goes to building a large toilet to flush down the other 50%
I'm tired of paying for wars and policing the world. Career politicians. I'm not going to be on the hook for the over 32 trillion debt the government is running up faster each day. Considering dipping out to Mexico and coming back as an illegal immigrant once I've worked on my Spanish accent.
So much money spent on healthcare and people still struggle with it... What's even worse is the funding for science and education. If America would take 2% from the defence budget and give it to science and education, the US would be so much better off. And that's just 2%...
If you are not a Libertarian after watching this what else do you need? You are not giving when you are forced to pay something with the threat of force if you don't comply. Surely the world would be more civil if we can individually pick the services we wish to support and not support.
A substantial fraction of Social Security goes to disabled workers and to spouses and children of deceased workers, so it's not just a retirement program. A large part of Medicare is funded by income tax, not just the dedicated Medicare tax. A fraction of Medicare is funded by premiums for Part B and Part D. A large fraction of Medicaid goes to nursing home care for people who have spent their life savings and have nothing left.
5% is quite a bit to be spending due to borrowed money. People don't realize it, but a lot of the reason we enjoy a strong military and social programs is because we don't have a balanced budget (or really anything close to it). We spend other people's money to pay for it, which ends up costing us big time in interest. Politicians do this so they don't have to face the wrath of their constituents who want to have their cake and eat it too (aka not paying extra in taxes, or cutting the part of budget they care about). Seriously, if we keep borrowing to support our current habits, the interest payments are going to eclipse many of the program costs we borrowed the money for in the first place!
There is an opportunity cost that is accumulating and I think many American's don't understand this. If you think we have it bad now, imagine if we hadn't borrowed all that money. All of the cuts to the military and social programs would've cost thousands of jobs and quality of life over the past ~30 years. In other words, things seem better than they are because we're subsidized on other people's money, kind of like how someone borrows money to live a life of luxury, so that they appear to be well off to others who don't know any better. No matter what you care about, it was subsidized by borrowing, and that's not sustainable, and not efficient due to interest. Politicians kick the can down the road, but and we can do the math to realize that is going to cost us more than the thing we borrowed for in the first place eventually (like with a mortgage's interest being 2-4 x the price of the principle at the end).
Here in the PH, I don't even want to start thinking about it.
It's pretty much set in stone that defense cannot be cut and will consistently be raised regardless of having to cut other programs
This certainly encourages me to donate more to scientific research. I want more than $40 of my money going towards that every year.
I’m not going to get social security when I get older.
Very good explanation.
You guys should Explain what a Tax Right off is. Im beyond confused about that!