Maybe a stretch but can you do a video of American's taxes + tuition + healthcare costs + etc. that other developed nations include into their taxes, whereas in the United States we opt to pay out-of-pocket or take out loans. I've heard and wish to see some clarification from a credible source that despite the United States has one of the lowest tax rates in the world, if you include all the other services that other developed nations provide with their taxes, Americans are actually paying more in comparison to other nations.
The utilization of after-tax money and tax-free growth makes opening a Roth IRA very advantageous. Through a careful guidance of my FA, I did not pay taxes on my withdrawals of $2.86 million when I retired.
I don't regret the numerous financial mistakes I've made in the past since I've learnt from them. But the biggest one was planning my finances without consulting with a licensed financial counsel.
Indeed, I did make use of a financial counselor. As I get closer to retirement, their advice has been really helpful. I thought compound interest on index funds wouldn't be sufficient because I started late. It's amusing how I've done better than colleagues who have more years of investment experience. I've profited more than $886k tax free.
I really appreciate your useful advice. I was able to set up a call with her and confirm her identity. She seems incredibly knowledgeable, and I appreciate your advice so much.
I have no issues paying taxes as a US citizen, however I hate that I have to do the paperwork when the government already has all the info they need. Always struck me as odd.
I thought the Turbo Tax people and all those other people depending on it, are giving the government enough money to vote against the new (and let's say, general in the western world) system.
Speak for yourself. Make it voluntary then, and you can give up your money to the government at your discretion rather than forcing your fellow citizens to do the same at gun point.
I don't like taxes purely for 1 reason, the government makes you calculate your own tax and penalises heavily for doing it wrong. Like imagine you sign to a phone company and they tell you to total your total data monthly. Then they will check and if it's wrong, they charge you extra. Like if you want money from me, spit out an invoice and I'll pay.
Well, i think the significant advantage of the current system in the US. is, you know exactly how much you are supposed to pay yourself (if you know basic math). I live in Switzerland and the problem I'm having here. is the fact that the government is always overcharging me on the automatic system. But when I go ahead and do it myself, I always save a lot of money. One year I even saved 10 000 swiss francs. Which is roughly $11k. The government is always overcharging me. I'm not sure if they do it on purpose. or if it's just an "accident" almost every single year... I found taxes extremely easy to do when I lived in the US for a 3 year time period. I work in the financial industry, so it could be i have a significant advantage with numbers. But I think it's decently easy, even for people who are bad with numbers.
@@mhmhm5337 at least overcharging could be refunded and you would never be at fault for that. The loss is just the interest of the money that you were overcharged. With the calculate yourself system, you risk overcharging yourself and get fined for overcharhging yourself cause you have done it wrongly.
@@SamanthayeoqyI never had that problem when I did my taxes in the US. The thing about the automatic tax system is the fact that most people dont bother to check out the numbers.
Unfortunately it’s not the government that’s making you do your tax forms, it’s the tax prep companies that lobby the government that make you do it. Like they explained, the system is hard because they want it to be hard so you pay them money to let them make it easy.
If the government can audit and even correct how much taxes you owe, they should do it for us and let us proofread it. But TurboTax and other companies will lobby to keep the existing system.
Even better let’s just have the government take our money from our banks without asking us 🤣 best way to make taxes easy would be to have a flat tax so everyone can easily figure out what they owe, but of course “two cents” won’t like that because they don’t think you would be paying your “fair share” 🤣
I'm a European that lived briefly in the US and now in Canada. To be honest to most odd difference I find with the two systems (Europe vs North America) is how the system creates a "distorted reality" in North Am, where when you talk about salaries or other incomes you always talk about it before tax and when you purchase something you always look at it before tax. That actually creates a feeling that you are earning more and spending less where in actuality it is false, you pay taxes on those earnings and you pay taxes on those acquisitions as well. I think that this is done on purpose and an episode on that might be really interesting :)
Agreed. I'm from the US but my husband isn't. I always have to remind him that salaries are stated annually and before tax in the US, making the gross salary look much higher than the net salary.
The reason it is this way is each one of the states and their municipalities have their own tax structures. For companies advertising you can see why tax is added. It allows them to advertise nationally the same ad for the same price, plus tax. As for income tax it is important to point out that income is taxed at different rates for different sources of income. If you are self employed or a contractor you will pay the highest taxes, self employment taxes, based on your profit. Most people work for a company and pay income and FICA taxes also known as payroll taxes. Like all taxes the more you make the higher your graduated tax bracket aka marginal tax brackets. Then there are people like me. They have what is considered "unearned" income. This is typically taxed at the lowest rates because there are no FICA taxes dedicated. FICA pays for Medicare, Medicaid and Social Security. Many people have some unearned income, examples are dividends, intrest, rental income, pensions and royalties. The reason this is taxed the lowest is retirees dominate all the "unearned" income earners. I hope this explains a lot.
@@Scott-by9ks income tax differ from person to person and region to region in other countries as well. My argument is why not calculate those taxes for each region and each individual up front and tell the individual a hard number which is the actual $ he/she will be pocketing. You know whether you are an employee or self-employe at the beginning of the year (in most cases) and usually deductions are known ahead of time (most of them) :)
@@OctavianGreculetz I would say you are wrong about the deductions part of your statement. I don't know what my deductions will be at the beginning of the year, how could I? I also don't know what my revenue will be either, exactly.
The Dutch "IRS"'s slogan is (roughly translated): "We can't make it more fun, but we can make it easier." As an international sole propriety business owner, I only have to file two forms: EU One-Stop-Shop VAT sales and national VAT income/revenue. Takes about 45 minutes per year. Simple :)
I'm in Canada, and still have to do the forms, but there's a button to auto-fill most of it from the government's records: I only had to add charitable contributions, and decide how much of my Home Buyers Plan (loan-to-self from retirement savings) to pay back.
@Exocentric unless you are self-employed, the flat rate is more interesting for most people. And in order to simplify taxes, they've lowered the rates, but did away with a lot of deductibles anyway. I'm Belgian (neighbouring country to the Netherlands). Our tax system is a little more antiquated and complicated, but even then, for the vast majority of the people, it's quite simple to fill out your taxes. If you're an employee, you can go online, check if your employer has sent your pay stub to the tax administration, check for deductibles like charitable donations to recognised organisations, childcare, etc, see if all your children and other dependants are there, open the mortgage app inside the tax website, play a bit with the already encoded data to see how it's best distributed between your spouse and yourself, and if you want to reclaim some taxes on the interest on your investments, you can enter those, too. Done in perhaps half an hour. If you're self-employed, you will need part B, too, where you will have to declare both income and expenditure, and for those, having an accountant is still a good idea, even if it should be possible to do it yourself if you don't have a business with employees. Our system is far from perfect, tax codes are numerous and ever-changing, our federal system has added a layer of complexity, too, etc. But listening to these and other systems, I still prefer our system to the US's. Especially the lack of help is astounding.
I don't mind paying taxes if it's for the citizenry's benefit but in our country, a huge cut goes to the pockets of politicians. I wish a special hell exists just for them.
A huge cut? To politicians? Unlikely. Many politicians are independently wealthy, and due to other broken laws, a lot of their time "on the clock" is spent raising campaign funds for upcoming elections for themselves and others in their party. Politicians' salaries, while generous relative to the "average" American, are meant to be commensurate with their public status and equivalent responsibilities. Said another way, federal politicians are paid from the Executive Schedule, with the base salary around $160k/year. That's 3x as much as the average household, but less than hundreds of CEOs. That's on par with career military officers in high-ranking positions such as admirals and generals. They also MUST live in or near D.C. at least part time, and D.C. is incredibly expensive. I'm not defending them entirely or claiming that the salary is 100% justified, but it's difficult for many Americans to understand without context just why the numbers are the way that they are.
@@Lawrence330 Most are independently wealthy, but politicians like Nancy Pelosi will gladly spend around $100,000 tax dollars on food and drink while flying. We also have money to Pakistan to teach Gender Studies in one of our “Covid Relief” bills too. Sure, why not add to the pointless spending?
Took me less than 10mins for mine in Mexico, and thats because I made deductions so I was double checking the quantities. Otherwise it would have taken me a minute as well.
@@Timbone07 I hear what you're saying. It's about perception. We hear in the news all the time, how money is given away to other countries, or otherwise being p#ssed away.
@@RedLeader327 military spending is such a small part of the budget compared to entitlements, and guess which one is an enumerated constitutional authority, and which one is used to buy votes....
Sort of how like none of the companies I'm a stockholder in will stop giving the CEOs bonuses against my will, and my votes at shareholder meetings barely matter.
Yet all the politicians that have the power to do something about it only complain about how rich people or companies pay little to no federal income tax. Yes, it sucks how they at times can pay so little compared to others, but there's not a lot I can do. However, the members of the US House of Reps can fix this by simplifying the code.
@@stanislausklim7794 Hey, how about instead of just complaining about people paying less by using tax loopholes, why don’t you change the law to remove the tax loopholes? Huh, if Congress wasn’t full of incompetent idiots, they could have fixed that decades ago, but then they wouldn’t have anything to complain about to get more votes from stupid people
In my country, you don't have to file taxes if you work for any company. The company does it for you since they are the ones responsible for deducting taxes from everyone's paycheck and making the payments on the workers' behalf.
@@xx-knight-xx2119 Honduras. I once had to file taxes for myself and that was because I had been unemployed for over a year and needed proof that I didn't owe any taxes. I spent more time waiting in line at the bank to pay for doing the paperwork than I spent at the Tax office, the people I talked with were very helpful and efficient.
@@xx-knight-xx2119 it really is very easy. Also, about six years ago, the government approved a law that basically made private retirement plan management companies mainstream, so that anyone can save for retirement, even if the company one works for doesn't offer one. If a worker has a retirement plan on its own, they just have to provide HR with the letter the plan company gives that says how much the worker saved the past year, as that money is tax deductible. If the company offers a retirement plan and the worker saves through it, the company sends the letter directly to HR, so no hassle for the worker in any way.
Same thing here in Ecuador. Paying taxes when you work independently is a headache, though. I have been doing so for about a year, and I just pay an accountant because it's so confusing.
In Chile they do it for you....you just do quick verification online and you are done in 5 min. Ha!! Who's the undeveloped country now? 🤣 Greetings from Chile 🇨🇱
In Uruguay you don’t have to do anything if you’re a company employee. Generally all companies have an accountant that does your taxes and the company discounts that part from your salary. It is a little bit more complex if you have a small business though, you can do it yourself but it is recommended to go to an accountant to avoid mistakes.
Same in Romania. The money you earn (either you work for the state - I do for example - or for the company) is a net salary, that being said taxes, health- and retirement insurances are already taken care of.
I think the main issue with that feeling @3:10 is because many Americans aren’t making enough money. You ever make minimum wage work 40 hours and see over half your check gone to income tax meanwhile there’s barely enough money for living.
It is so annoying how the IRS have most of our info and we still have to do all the calculations. Ugh. Just so annoying. Guess it’s nice to know our compliance rate is high though.
Don't complain about the IRS for this, they've tried. The fault is the large tax-prep and tax-avoidance industry and how they basically determine US tax law.
Where I'm at, if you have paid your fire/ambulance taxes, the transport bill gets waived. I'd contest those bills next time you get one in the mail after using those services.
@@rhaythe depends on where you live. In some places it is a benefit of paying taxes that are typically higher than other places. Where I live it is paid for by taxes and "user fees".
Ambulances used to be public services funded by the government. Now most ambulances are private businesses unaffiliated with the hospital. So you are most likely paying for a private service
Also, to piggyback on the comment you made about tax invasion, when you get a refund you’re not making money, your simply getting paid back the money that the government owned you. By getting a refund, you gave the government an interest-free loan.
Yes, and now that the IRS is literally taking a year to process tax returns (yes, it took a year for my 2019 return to be processed, and my 2020 return still hasn't been), the term of that loan is now a year.
@@arnbrandy No. You do, if you owe over a certain amount at tax time (interest plus "underwithholding penalties"), but Uncle Sam's laws don't apply to Uncle Sam, surprisingly.
The problem is that for every person who thinks that, there's one who thinks the military isn't big enough, and we shouldn't be wasting money on ungrateful welfare queens, etc. Everybody is on his own page when it comes to this.
I hate paying taxes because the government is super inefficient. Just check how much your local government paid for something. Everything that the government procures is way overpriced. Like using 2 million dollars to build a toilet. the list goes on and on.
And what tax payer founded collages teaching capitalism is bad man white are responsible every wrong on earth . And we need taxes to these issues . Wonder how those professors. Denying reality of trickle down economics explain Thrift stores or history of the car
I would love to be able to allocate WHERE my tax dollars go, and it has always struck me as odd that for most people with the standard deduction and standard sources of income, that the IRS can't basically file your taxes for you if they already have all the documents! Great video as always, really enjoyed!
Yes!! I have had this same idea. When you pay your federal income tax bill you choose the budget allocation. For example. 50% to civil defense, 25% to education, 25% to infrastructure. You could vote with your dollars. If you're anti-war no military budget. If you're anti-welfare state no allocation to unemployment stimulus. You can choose.
I never understood why we have so many forms and the language on each one is so confusing. I have no clue what to write it, it’s like trying to take an exam for a class you never took. They really should just simply the tax code and cut out the unnecessary paper work.
Because I don't get anywhere near the value of what I pay in taxes. I worked from home all last year and paid a ton to the feds for absolutely nothing in return. The examples mentioned about roads, EMS, are local/state/county taxes, which are more directly impactful than federal taxes.
Taxes are theft because people don't agree on paying them, I personally hate having my choices made for me and so paying for public services is paying a monopoly for your services, no choice at all. The (often public) company has no incentives to improve their service because they have no competitors and everyone will pay them anyways. Change my mind
Considering you can be jailed for non payment I'd say that's a stupid quote. Idc if someone owed me so long as I have my freedom. I can search for ways to recoup the loss. In a jail cell, not likely.
@@raventhorX Maybe this is referring to the refund at the end of the year? I never understood why people brag about how big of a refund they just got. That money was yours, you just let the government hold onto it for between 1 and 15 months, without interest! I try to change my withholdings so I owe a few hundred dollars each April
@@raventhorX For context, this wasn't about not paying taxes at all, but in reference to getting refunds. You very astutely pointed out that the government gives it's citizens no real choice when it comes to paying taxes, but the government itself always has the choice about whether it pays people back.
Even as an adult, PBS has the best broadcasting/videos out there. I learn so much. I'm glad there are opportunities for adult continued learning (and kinda think all adults should keep an eye on this stuff, if they can).
This year for the first time I filed my taxes online on our local "IRS" website instead of going thru my work. It was so easy I almost laughed. When I connected with my electronic ID all my info was already inputted. All I needed to put in was my yearly income, my already deducted taxes and (since I had no complicated incomes) just double click all other money related fields in said form to automatically calculate things for me. If I had complicated income the worst I'd have to do is fill in 10-15 fields and rest of it again automatically calculate with double clicks.
@@takatsu5 no that is not you are correct. Defense should be the one of the main jobs of the government. I will adjust my statement 75% or more of tax money collected by the U.S Government is completely wasted.
In the uk VAT is included in price and tax gets taken from your pay check before the money goes into your account. Why doesn’t it work like this in the us?
In Spain it used to be awful. But it is getting easier. You can download a “draft” that includes everything the government knows about your finances. If you aren’t self-employed and you don’t have tenants in your properties or something similar, it takes less than ten minutes having a look at it, adding the very few things that might be absent (if any) and filing them online. No attached documents needed either.
As you pointed out, the IRS already knows exactly how much I owe it each year, so I have not filed any tax returns in decades. And I never get any notices or complaints from the IRS.
7:45 Americans seem to be in the paradoxical situation of having some of the lowest taxes in the world, but the most angst about them. That's not a paradox. You just need to reframe the situation: Americans have some of the lowest taxes BECAUSE they have the most angst about them.
Americans have been raised on a broken education system that starts with the myth of unfair taxation from the British Crown, and are therefore predisposed to believe that any taxation is unfair. Americans have worse income inequality, fewer social programs, and lag in healthcare, education, and other key metrics BECAUSE they have angst about taxes.
@@07krutons If you're self-employed, the taxes are still comparatively low. The rub is that you also have to pay the share that an employer usually pays. Typically, an employer is on the hook for half of social security and medicare, plus unemployment insurance, and payroll tax for each employee. When you're the boss and the grunt, you pay both sides of the coin, and should price your services accordingly to the market.
The IRS already knows how much you owe. For some reason they don't tell you so you have to waste 13 hours filling out those forms. Unlike other countries.
Whenever people talk about why we need taxes they often mention roads and fire departments which cost almost nothing relative to our budget. They almost never bring up the huge line item in taxes of checks going to old people (social security) who by and large have more money and padding revenues of hospital systems via Medicare
Social security accounts for less than 3% of the discretionary budget, and medicare accounts for another 6%. By far, the largest single drain on the tax base is the military budget, which acts to provide transfer payments to corporations (defense contractors) and to localities with a military base (through service member local spending). www.nationalpriorities.org/campaigns/military-spending-united-states/
@@kinokunia I work in finance and would never in a million years get a tattoo for myself. But based on my experiences, I completely disagree with you.
I don’t like paying taxes simply because I have absolutely no control as to where my money goes. They literally take my money and decide where my money goes for me 🙄
You're looking at it the wrong way, though. For one, you're not the only one paying up, meaning you're not the only one who has a say. Conversely, if people only paid for things they felt were only important to them personally, few things that we take for granted would be properly funded. Pragmatically, no government expense is something everyone will 100% agree on. But if you would like to help tilt spending in a way you prefer, elections (or running for office) are the best ways to do that. Especially in local elections, some platforms (sometimes known as "Propositions") are on the ballot for you to vote on. But just know that there are consequences to the siren song of "Cutting taxes/spending", especially if the campaigner is being ambiguous.
People hate taxes because too much of it is wasting the money. I was military logistics and it made me sick how much the government would overpay for stuff. An item would be hundreds of dollars when the exact same item (brand and model) would be on Amazon for like ten. What made it worst was that the government would be bound by contract to buy it!
@@RedLeader327 your choice is pay taxes or go to prison... so yeah its theft/extortion/coercion hence the name, if it was voluntary it wouldnt be called taxation
In Hungary(Central Europe) taxes are calculated automatically, including returns, etc. You can review and change it online if need be, but most citizens do not have to do anything.
That's a gross exageration. I've lived in a 2nd world and the US is still generally better off than that. But, there are definitely pockets that are legit 3rd world level of development like some of the poorer reservations and parts of Appalachia where running water and electricity aren't yet available.
I don't like paying taxes because I feel the government isn't a good steward of my money. Third party spending is the most wasteful. Let me keep my money and find the best way to spend it efficiently for my family. I don't like govt deciding my values and priorities. Stick to military and infrastructure.
There was never need for central bank or income taxes until they decided to change that one Christmas morning in 1913. It was used to siphon well from the public and then when Nixon cut the dollar from gold in 1971, they've been able to siphon even more
Nudges == Loopholes Taking out the loopholes would mean giving the government less opportunity to nudge people to do things that aren't in the people's best financial interest. Less power for government isn't something anybody in government sees as a good idea.
people have made fortunes off Crypto, some have lost money. It is volatile, but people make money off of volatility too. Paying taxes won't bother you when knowing how to earn more
All I think about is how much more money programs would have if we focused on tax compliance with the rich. If we did it like other countries, the IRS could spend less time checking most Americans' work and focus on the few where it's hard to track business expenses.
Closing the loopholes is the best way forward with this. People loved it when they could buy diner food at the round price on the menu. If the IRS took this approach of transparency, they’d be able to enforce tax law much more effectively
As a Canadian what I don't understand is when I work my ass off and put in a bunch of extra overtime I apparently get bumped up into a higher tax bracket and I see a huge diminish on the returns of those extra hours. It's almost like you're being penalized for working harder ? It's not like its easy, passive income, I'm climbing ladders, carrying pales of paint, and sweating in the sun for it.
The US Government: Here's $2400 because covid. The US Government Again: Here's $2800 because covid. The US Government in 2021: Yeaaaa I'm gonna need all of that back... THIS ^ is stupid no matter how you slice it
If taxes are used to better improve our quality of life then maybe most people won’t mind as much*. But we all know it just goes to corrupt politicians.
Actually they Winn more tax payer fund collage social studies teaching and teaching freedom is bad. And even historically lies already disproven by trickle do economics not working despite history of car or Thrift stores . What you think of welfare srunges projecting on the net tax payers being ones to not pay their fare share
OK, I'm one of that 83%. Every year I have an obligation for financing some tax filing software so that I'd file the exact information that the IRS already has. This country with its lobbyism is so underperforming. But this ridiculous loophole makes HR Block, TurboTax, intuit.... filthy rich, so I guess not all is lost.
I only didn't pay taxes once cause my income was so low I was basically homeless, they still sent a bill to me. I was like jail......roof and food, might be a good deal.
How does mortgage tax deduction make the houses cheaper? People come with more dry powder and they raise the prices due to tax deductability. I guess builders can sell the houses at a higher price. So renters are subsidizing house builders?
The problem is when they star creating taxes for things they didn't have before, Green products have nudges now, but when they become the norm, they are going to be taxed like normal cars and gasoline are right now, and people won't like that. Spain created a controversial tax for solar energy called the "sun tax" and it showed in the elections the backlash.
When it comes to the world of investing,most people don't know where to start.fortunately,great investors of the past and present can provide us with guidance
@@isabellaolivia5712 I'll recommend my professional Mr Jackson Sebastian, My first investment with him earned me a total profits of $28,300 And ever since then he keeps delivering
I think the biggest reason why people don’t like paying taxes is because they don’t feel like there tax dollars are being used efficiently. The government in general is very bad at providing value in a efficient and effective manner. Great video!
Or we live a majority ruled democracy where those don't boat tax. Receive taxes have most say. We even project saying the net tax payer s ones not paying their fare share .
Paying taxes sucks when you know the money is being spent on things you don't agree with or the government is not using it correctly. That pisses me off. I also believe we shouldn't be paying any more than 5% income taxes. If the government can't survive off of 5% (~$1 Trillion/year), they need to be shrunk down!
The change should come through EDUCATION. "Closing loopholes" is a silly concept. Take IRA, Roth IRA and Backdoor Roth IRA, for instance. These are not loopholes you need to shut down, but teach kids from young age how they work. Tax write-offs? The same thing. EDUCATE!
IRAs aren't "loopholes," they are designed to encourage people to save for retirement. A loophole might be something like a business paying payroll taxes for each human worker, but getting a tax deduction for each capital investment in automation technology. Literally a tax break to replace people with robots.
Taxes are "voluntary compliance", but if you don't "volunteer" to comply, you'll be prosecuted, found guilty and incarcerated. Now this is my type of volunteering
There's already a free-file option for people earning below $72K per year. May be IRS could follow the Netherlands/Japan way of sending the precalculated forms for those earning $72K or less..
Instead of coming after the citizen for money maybe the federal government should balance their budget and pay off their debts. Oh wait who's the irresponsible one here, god forbid us citizens protest the fact the government takes 40% of our earned income while they spend frivolously. Most people would be okay with some level of taxation if the budget was managed correctly.
FYI: In the US in 2017, the top 1% of income earners paid 38.5% of all income taxes, the top 10% paid 70.1% of all income taxes, and the bottom 50% paid 3.1% of all income taxes. I'm certainly not in those first two groups, but they paid much MORE than their "fair share." How does forcing the people who make $1 more than you to pay more in taxes, help you specifically? That inclination sounds a lot like jealousy and greed to me. Many of those folks are the ones responsible for employing much of America. Many small businesses are flow through entities, so the income hits the owner's individual tax return. The problem isn't with taxes, the problem is spending. Its the same problem since at least the 1960s, and its only gotten worse. Both parties are to blame. Presidents and Congresses. Domestic and Defense Spending. Low interest rates from the Federal Reserve only shield the problem temporarily because it allows the Feds to borrow more, cheaply. What happens when interest rates rise to historical average levels?
In Switzerland we live in a middle ground, with a very easy software to use for filing our taxes, but still having to do it annually. And many people recurring to paid expertise.
The book Creature From Jekyll Island has all the answers you need. Use to be only corporations were taxed. Since 1913, we taxed on an individual basis. Now we give our tax money to foreign governments.... Sickening.
I'm fine with taxes except for income tax. I love how the federal government helps out with programs in my state. For every dollar they take they'll send back 25 cents
Why we hate paying taxes? well... it is this strong arming. Don't fork over money, or else. Plus, the redundancy. Why do we need to file anything when the IRS already knows?!?! I much rather voluntarily contribute into sections of government and receive at least a 1% dividend, instead of having to be forced to contribute to the ether.... why not have a staking model instead of this involuntary strong arming?
Uhhh cause they take enough out of everything we do? Get paid, pay taxes. Win the lottery, pay taxes. Spend on items, pay taxes. Every year, pay taxes. You never get a bonus from them inside your paycheck though
Govt revenue hasn't increased that much, if at all, no matter how high you hike up taxes. Remember the '50s and how they had a 91% top earner tax that was easily avoided BY THE RICH?
@@SimGunther it’s because with that high of a tax rate, they either didn’t take a salary, or the cost of taxes was soooo much, that it was enough to justify millions of dollars to lobby in Washington to crooked politicians that they gave them personal exemptions. There was a movie director who got a loophole in place for only movies he made to be tax exempt.
Here in Australia the government does 90% of the work since like over there they already have all your info, know how much your employer paid you ect.... So we just add some deductions and all done. Takes about 15 minutes. Seems so odd the IRS makes you tell them all the info they already know?
I worked in a summer camp 3 summers, at the end of 2018 the rules changed so I was suddenly forced to file a tax return for my 2nd and 3rd summers. Single most stressful thing I have ever had to do. The ironic thing is I paid more income tax to America than I did to my home country - I actually got a rebate coz my income come in under the tax free threshold. Turns out you guys don't have a minimum tax free income amount anymore (which I think is partly why I had to file after my 2nd summer was done)
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No american ever what about communist
Shouldn't the net tax payers have the most say
I don't care who the IRS sends I'm not paying taxes.
Seems like projection from welfare stonges that the net tax payers don't pay their fare share
Maybe a stretch but can you do a video of American's taxes + tuition + healthcare costs + etc. that other developed nations include into their taxes, whereas in the United States we opt to pay out-of-pocket or take out loans. I've heard and wish to see some clarification from a credible source that despite the United States has one of the lowest tax rates in the world, if you include all the other services that other developed nations provide with their taxes, Americans are actually paying more in comparison to other nations.
The utilization of after-tax money and tax-free growth makes opening a Roth IRA very advantageous. Through a careful guidance of my FA, I did not pay taxes on my withdrawals of $2.86 million when I retired.
I don't regret the numerous financial mistakes I've made in the past since I've learnt from them. But the biggest one was planning my finances without consulting with a licensed financial counsel.
Indeed, I did make use of a financial counselor. As I get closer to retirement, their advice has been really helpful. I thought compound interest on index funds wouldn't be sufficient because I started late. It's amusing how I've done better than colleagues who have more years of investment experience. I've profited more than $886k tax free.
@@mariaguerrero08Please who is the consultant that assists you with your investment and if you don't mind, how do I get in touch with them?
Her name is “Izella Annette Anderson” can't divulge much. Most likely, the internet should have her basic info, you can research if you like
I really appreciate your useful advice. I was able to set up a call with her and confirm her identity. She seems incredibly knowledgeable, and I appreciate your advice so much.
I have no issues paying taxes as a US citizen, however I hate that I have to do the paperwork when the government already has all the info they need. Always struck me as odd.
I thought the Turbo Tax people and all those other people depending on it, are giving the government enough money to vote against the new (and let's say, general in the western world) system.
Exactly! They already know how much you owe, why do I have to guess?
Speak for yourself. Make it voluntary then, and you can give up your money to the government at your discretion rather than forcing your fellow citizens to do the same at gun point.
Intuit and other companies lobbied for this system.
It's a $12,000,000,000.00 a year industry that would disappear over night.
I don't like taxes purely for 1 reason, the government makes you calculate your own tax and penalises heavily for doing it wrong.
Like imagine you sign to a phone company and they tell you to total your total data monthly. Then they will check and if it's wrong, they charge you extra. Like if you want money from me, spit out an invoice and I'll pay.
Yup and if they get it wrong they have to pay! Why place that burden on the user of the services!
Well, i think the significant advantage of the current system in the US. is, you know exactly how much you are supposed to pay yourself (if you know basic math). I live in Switzerland and the problem I'm having here. is the fact that the government is always overcharging me on the automatic system. But when I go ahead and do it myself, I always save a lot of money. One year I even saved 10 000 swiss francs. Which is roughly $11k. The government is always overcharging me. I'm not sure if they do it on purpose. or if it's just an "accident" almost every single year... I found taxes extremely easy to do when I lived in the US for a 3 year time period. I work in the financial industry, so it could be i have a significant advantage with numbers. But I think it's decently easy, even for people who are bad with numbers.
@@mhmhm5337 at least overcharging could be refunded and you would never be at fault for that. The loss is just the interest of the money that you were overcharged.
With the calculate yourself system, you risk overcharging yourself and get fined for overcharhging yourself cause you have done it wrongly.
@@SamanthayeoqyI never had that problem when I did my taxes in the US. The thing about the automatic tax system is the fact that most people dont bother to check out the numbers.
Unfortunately it’s not the government that’s making you do your tax forms, it’s the tax prep companies that lobby the government that make you do it. Like they explained, the system is hard because they want it to be hard so you pay them money to let them make it easy.
If the government can audit and even correct how much taxes you owe, they should do it for us and let us proofread it. But TurboTax and other companies will lobby to keep the existing system.
Of course, those lobbying efforts are also aided by the state and locality they are in. Their employees and those that rely on them also help.
"Adam Ruins Everything" did a good segment on this.
That's capitalism for you. Lobbying is legalized bribery. Private companies bribe our politicians.
Even better let’s just have the government take our money from our banks without asking us 🤣 best way to make taxes easy would be to have a flat tax so everyone can easily figure out what they owe, but of course “two cents” won’t like that because they don’t think you would be paying your “fair share” 🤣
@@777Skeptic And Hasan Minhaj
I'm a European that lived briefly in the US and now in Canada. To be honest to most odd difference I find with the two systems (Europe vs North America) is how the system creates a "distorted reality" in North Am, where when you talk about salaries or other incomes you always talk about it before tax and when you purchase something you always look at it before tax. That actually creates a feeling that you are earning more and spending less where in actuality it is false, you pay taxes on those earnings and you pay taxes on those acquisitions as well. I think that this is done on purpose and an episode on that might be really interesting :)
Agreed. I'm from the US but my husband isn't. I always have to remind him that salaries are stated annually and before tax in the US, making the gross salary look much higher than the net salary.
The reason it is this way is each one of the states and their municipalities have their own tax structures. For companies advertising you can see why tax is added. It allows them to advertise nationally the same ad for the same price, plus tax.
As for income tax it is important to point out that income is taxed at different rates for different sources of income. If you are self employed or a contractor you will pay the highest taxes, self employment taxes, based on your profit. Most people work for a company and pay income and FICA taxes also known as payroll taxes. Like all taxes the more you make the higher your graduated tax bracket aka marginal tax brackets.
Then there are people like me. They have what is considered "unearned" income. This is typically taxed at the lowest rates because there are no FICA taxes dedicated. FICA pays for Medicare, Medicaid and Social Security. Many people have some unearned income, examples are dividends, intrest, rental income, pensions and royalties. The reason this is taxed the lowest is retirees dominate all the "unearned" income earners. I hope this explains a lot.
@@Scott-by9ks Really insightful thanks for this!
@@Scott-by9ks income tax differ from person to person and region to region in other countries as well. My argument is why not calculate those taxes for each region and each individual up front and tell the individual a hard number which is the actual $ he/she will be pocketing. You know whether you are an employee or self-employe at the beginning of the year (in most cases) and usually deductions are known ahead of time (most of them) :)
@@OctavianGreculetz I would say you are wrong about the deductions part of your statement. I don't know what my deductions will be at the beginning of the year, how could I? I also don't know what my revenue will be either, exactly.
The Dutch "IRS"'s slogan is (roughly translated): "We can't make it more fun, but we can make it easier."
As an international sole propriety business owner, I only have to file two forms: EU One-Stop-Shop VAT sales and national VAT income/revenue. Takes about 45 minutes per year. Simple :)
The Dutch have an advance society. We should Barrow those concepts
Sheesh. Must be nice!
I'm in Canada, and still have to do the forms, but there's a button to auto-fill most of it from the government's records: I only had to add charitable contributions, and decide how much of my Home Buyers Plan (loan-to-self from retirement savings) to pay back.
@Exocentric unless you are self-employed, the flat rate is more interesting for most people. And in order to simplify taxes, they've lowered the rates, but did away with a lot of deductibles anyway.
I'm Belgian (neighbouring country to the Netherlands). Our tax system is a little more antiquated and complicated, but even then, for the vast majority of the people, it's quite simple to fill out your taxes. If you're an employee, you can go online, check if your employer has sent your pay stub to the tax administration, check for deductibles like charitable donations to recognised organisations, childcare, etc, see if all your children and other dependants are there, open the mortgage app inside the tax website, play a bit with the already encoded data to see how it's best distributed between your spouse and yourself, and if you want to reclaim some taxes on the interest on your investments, you can enter those, too. Done in perhaps half an hour.
If you're self-employed, you will need part B, too, where you will have to declare both income and expenditure, and for those, having an accountant is still a good idea, even if it should be possible to do it yourself if you don't have a business with employees.
Our system is far from perfect, tax codes are numerous and ever-changing, our federal system has added a layer of complexity, too, etc. But listening to these and other systems, I still prefer our system to the US's. Especially the lack of help is astounding.
@Exocentric thank you! I wanted to say income/expenses, but landed on income/revenue 😅
I don't mind paying taxes if it's for the citizenry's benefit but in our country, a huge cut goes to the pockets of politicians. I wish a special hell exists just for them.
There is another way of paying your tax, it's so easy and affordable.
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A huge cut? To politicians? Unlikely. Many politicians are independently wealthy, and due to other broken laws, a lot of their time "on the clock" is spent raising campaign funds for upcoming elections for themselves and others in their party. Politicians' salaries, while generous relative to the "average" American, are meant to be commensurate with their public status and equivalent responsibilities.
Said another way, federal politicians are paid from the Executive Schedule, with the base salary around $160k/year. That's 3x as much as the average household, but less than hundreds of CEOs. That's on par with career military officers in high-ranking positions such as admirals and generals. They also MUST live in or near D.C. at least part time, and D.C. is incredibly expensive.
I'm not defending them entirely or claiming that the salary is 100% justified, but it's difficult for many Americans to understand without context just why the numbers are the way that they are.
@@Lawrence330 Most are independently wealthy, but politicians like Nancy Pelosi will gladly spend around $100,000 tax dollars on food and drink while flying. We also have money to Pakistan to teach Gender Studies in one of our “Covid Relief” bills too. Sure, why not add to the pointless spending?
@@Lawrence330 it's also possible that the person is not American
I did my taxes in 1 minute. Estonia has a very good Tax system.
Took me less than 10mins for mine in Mexico, and thats because I made deductions so I was double checking the quantities. Otherwise it would have taken me a minute as well.
I did mine in 0 minutes in Slovenia, I just got the filled in form in the mail.
0 minutes in Russia. My employer does taxes for me.
In Chile is about 5 min. if you start verifing things. But you can press accept snd then is out.
I (never) did my taxes in 0 minutes in Morocco.. The state cut it directly from the monthly salary !
"Why Do We HATE Paying Taxes?", Because we don't get what we perceive as value, for our money.
Doesn't make it true.
Americans get 24/7 electricity, Fire Department and others.
Other countries wish they get the same
@@Timbone07 Their other countries that pay just as much but they get twice as much. That's the real problem (The Scandinavian countries come to mind).
@@everythingisfine9988 I see it as a glass half full or glass half empty scenario
@@Timbone07 I hear what you're saying. It's about perception. We hear in the news all the time, how money is given away to other countries, or otherwise being p#ssed away.
@@Timbone07 have you ever visited Scandinavian country for long period of time? You'd see what I'm talking about. They're just very good at governing.
I hate paying taxes because i don't think the money is being spent appropriately.
Exactly! Black budgets, bills stuffed pork projects, and politicians giving themselves raises.
It isn't. It's being spent on keeping America's military/position of dominance more than anything else.
Honestly, that's virtually inevitable; no matter how efficient a system is, someone is always going to be unhappy.
@@RedLeader327 military spending is such a small part of the budget compared to entitlements, and guess which one is an enumerated constitutional authority, and which one is used to buy votes....
Sort of how like none of the companies I'm a stockholder in will stop giving the CEOs bonuses against my will, and my votes at shareholder meetings barely matter.
This needs to be said as often as possible. The US tax system is ridiculously broken for the avg citizen. Thnx for this video guys.
Yet all the politicians that have the power to do something about it only complain about how rich people or companies pay little to no federal income tax. Yes, it sucks how they at times can pay so little compared to others, but there's not a lot I can do. However, the members of the US House of Reps can fix this by simplifying the code.
@@stanislausklim7794 Hey, how about instead of just complaining about people paying less by using tax loopholes, why don’t you change the law to remove the tax loopholes? Huh, if Congress wasn’t full of incompetent idiots, they could have fixed that decades ago, but then they wouldn’t have anything to complain about to get more votes from stupid people
@@stanislausklim7794 you forget that lobbyist exist
In my country, you don't have to file taxes if you work for any company. The company does it for you since they are the ones responsible for deducting taxes from everyone's paycheck and making the payments on the workers' behalf.
What country is that?
@@xx-knight-xx2119 Honduras. I once had to file taxes for myself and that was because I had been unemployed for over a year and needed proof that I didn't owe any taxes. I spent more time waiting in line at the bank to pay for doing the paperwork than I spent at the Tax office, the people I talked with were very helpful and efficient.
@@CalebCalixFernandez Wow that seems so simple and easy. I wish it was like that here in USA
@@xx-knight-xx2119 it really is very easy. Also, about six years ago, the government approved a law that basically made private retirement plan management companies mainstream, so that anyone can save for retirement, even if the company one works for doesn't offer one. If a worker has a retirement plan on its own, they just have to provide HR with the letter the plan company gives that says how much the worker saved the past year, as that money is tax deductible. If the company offers a retirement plan and the worker saves through it, the company sends the letter directly to HR, so no hassle for the worker in any way.
Same thing here in Ecuador. Paying taxes when you work independently is a headache, though. I have been doing so for about a year, and I just pay an accountant because it's so confusing.
In England, we don't have to do our own taxes unless self-employed I think (it's all automatically done) never knew it was such a hassle elsewhere! 😬
In America we are all about torturing ourselves. Something we inherited from the Puritans.
In Chile they do it for you....you just do quick verification online and you are done in 5 min.
Ha!! Who's the undeveloped country now? 🤣
Greetings from Chile 🇨🇱
In Uruguay you don’t have to do anything if you’re a company employee. Generally all companies have an accountant that does your taxes and the company discounts that part from your salary. It is a little bit more complex if you have a small business though, you can do it yourself but it is recommended to go to an accountant to avoid mistakes.
Same in Romania. The money you earn (either you work for the state - I do for example - or for the company) is a net salary, that being said taxes, health- and retirement insurances are already taken care of.
I think the main issue with that feeling @3:10 is because many Americans aren’t making enough money. You ever make minimum wage work 40 hours and see over half your check gone to income tax meanwhile there’s barely enough money for living.
It is so annoying how the IRS have most of our info and we still have to do all the calculations. Ugh. Just so annoying. Guess it’s nice to know our compliance rate is high though.
Don't complain about the IRS for this, they've tried. The fault is the large tax-prep and tax-avoidance industry and how they basically determine US tax law.
lol people don't want to go t jail believe it or not
Wait a minute...when I dial 911 I'm getting charged for the ambulance bill. Wtf! What did they do with my tax money?
Where I'm at, if you have paid your fire/ambulance taxes, the transport bill gets waived. I'd contest those bills next time you get one in the mail after using those services.
@@rhaythe depends on where you live. In some places it is a benefit of paying taxes that are typically higher than other places. Where I live it is paid for by taxes and "user fees".
Ambulances used to be public services funded by the government. Now most ambulances are private businesses unaffiliated with the hospital. So you are most likely paying for a private service
Ambulances are often a private service in the U.S.
@@takatsu5 I guess "user fees" is more honest than "involuntary donation"
Also, to piggyback on the comment you made about tax invasion, when you get a refund you’re not making money, your simply getting paid back the money that the government owned you. By getting a refund, you gave the government an interest-free loan.
If you're getting tax credits it is possible to receive more than you put in
Yes, and now that the IRS is literally taking a year to process tax returns (yes, it took a year for my 2019 return to be processed, and my 2020 return still hasn't been), the term of that loan is now a year.
Doesn't the US government pay interest over the refunds? That's surprising to me.
@@arnbrandy No. You do, if you owe over a certain amount at tax time (interest plus "underwithholding penalties"), but Uncle Sam's laws don't apply to Uncle Sam, surprisingly.
so if i refund next year i got the interest?
As a professional, paid tax preparer, I fully advocate for a simpler system that makes my job obsolete to the every day taxpayer, as it should be.
Why? Because we want our money to be spent responsibly, not on a bloated military and endless wars.
The problem is that for every person who thinks that, there's one who thinks the military isn't big enough, and we shouldn't be wasting money on ungrateful welfare queens, etc. Everybody is on his own page when it comes to this.
@Luís Andrade It's still too big though.
@Luís Andrade 700BN/year aka more than the next 13 countries combined is still too big no matter how you try to spin it.
What percentage of the US budget should be spent on defense then?
@@RedLeader327 and cut the bloated education industrial complex that receives more than a trillion each year
I hate paying taxes because the government is super inefficient. Just check how much your local government paid for something. Everything that the government procures is way overpriced. Like using 2 million dollars to build a toilet. the list goes on and on.
And what tax payer founded collages teaching capitalism is bad man white are responsible every wrong on earth . And we need taxes to these issues . Wonder how those professors. Denying reality of trickle down economics explain Thrift stores or history of the car
Somebody watches Stossel ;)
@@osmosisjones4912 are you okay? Most of my college professors are super far left, what are you on about?
@@harrychufan when government itself funds certain party when you have pay to fund opposing party their already stealing elections
@@osmosisjones4912 your English is so bad I can’t even understand what argument you’re trying to make
I would love to be able to allocate WHERE my tax dollars go, and it has always struck me as odd that for most people with the standard deduction and standard sources of income, that the IRS can't basically file your taxes for you if they already have all the documents! Great video as always, really enjoyed!
Yes!! I have had this same idea. When you pay your federal income tax bill you choose the budget allocation. For example. 50% to civil defense, 25% to education, 25% to infrastructure. You could vote with your dollars. If you're anti-war no military budget. If you're anti-welfare state no allocation to unemployment stimulus. You can choose.
Cute idea but silly. Can't have half the budget going towards pet shelters
I would rather support my community directly through mutual aid than give money for killing people around the world
So your tax going letting kill you.
I never understood why we have so many forms and the language on each one is so confusing. I have no clue what to write it, it’s like trying to take an exam for a class you never took. They really should just simply the tax code and cut out the unnecessary paper work.
Because I don't get anywhere near the value of what I pay in taxes. I worked from home all last year and paid a ton to the feds for absolutely nothing in return.
The examples mentioned about roads, EMS, are local/state/county taxes, which are more directly impactful than federal taxes.
11 hours! I spent 2 hours to file my tax and I thought it was too much of my time already!
Next time you don't have to go through that stress just to pay your tax. There are other good options.
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To be fair, the roads suck, fire trucks can take up to 25 minutes to arrive, and the FDA let's way more stuff slide than it should.
I'm so glad you guys mentioned the Tax Preparers profiting off of the billion dollar industry which shouldn't exist. Please keep up the great work!
Taxes are theft because people don't agree on paying them, I personally hate having my choices made for me and so paying for public services is paying a monopoly for your services, no choice at all. The (often public) company has no incentives to improve their service because they have no competitors and everyone will pay them anyways. Change my mind
To quote my high school economics teacher: "I'd rather owe the government than have the government owe me."
Considering you can be jailed for non payment I'd say that's a stupid quote. Idc if someone owed me so long as I have my freedom. I can search for ways to recoup the loss. In a jail cell, not likely.
@@raventhorX Maybe this is referring to the refund at the end of the year? I never understood why people brag about how big of a refund they just got. That money was yours, you just let the government hold onto it for between 1 and 15 months, without interest! I try to change my withholdings so I owe a few hundred dollars each April
@@raventhorX For context, this wasn't about not paying taxes at all, but in reference to getting refunds.
You very astutely pointed out that the government gives it's citizens no real choice when it comes to paying taxes, but the government itself always has the choice about whether it pays people back.
Even as an adult, PBS has the best broadcasting/videos out there. I learn so much. I'm glad there are opportunities for adult continued learning (and kinda think all adults should keep an eye on this stuff, if they can).
This year for the first time I filed my taxes online on our local "IRS" website instead of going thru my work. It was so easy I almost laughed.
When I connected with my electronic ID all my info was already inputted. All I needed to put in was my yearly income, my already deducted taxes and (since I had no complicated incomes) just double click all other money related fields in said form to automatically calculate things for me. If I had complicated income the worst I'd have to do is fill in 10-15 fields and rest of it again automatically calculate with double clicks.
The first time I ever did my taxes, the IRS accused me of identity theft. You can imagine how stressful that was for an 18 year old lmaooo
The worst part about paying taxes is knowing that it's going to be wasted
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I don't feel the soldier getting his or pay is a waste of taxes.
@@takatsu5 no that is not you are correct. Defense should be the one of the main jobs of the government. I will adjust my statement 75% or more of tax money collected by the U.S Government is completely wasted.
In the uk VAT is included in price and tax gets taken from your pay check before the money goes into your account.
Why doesn’t it work like this in the us?
In Spain it used to be awful. But it is getting easier. You can download a “draft” that includes everything the government knows about your finances. If you aren’t self-employed and you don’t have tenants in your properties or something similar, it takes less than ten minutes having a look at it, adding the very few things that might be absent (if any) and filing them online. No attached documents needed either.
As you pointed out, the IRS already knows exactly how much I owe it each year, so I have not filed any tax returns in decades. And I never get any notices or complaints from the IRS.
7:45 Americans seem to be in the paradoxical situation of having some of the lowest taxes in the world, but the most angst about them.
That's not a paradox. You just need to reframe the situation:
Americans have some of the lowest taxes BECAUSE they have the most angst about them.
If self-employed, or making any kind of decent money in the US, the taxes are not so low. 45%+
Americans have been raised on a broken education system that starts with the myth of unfair taxation from the British Crown, and are therefore predisposed to believe that any taxation is unfair.
Americans have worse income inequality, fewer social programs, and lag in healthcare, education, and other key metrics BECAUSE they have angst about taxes.
@@07krutons If you're self-employed, the taxes are still comparatively low. The rub is that you also have to pay the share that an employer usually pays. Typically, an employer is on the hook for half of social security and medicare, plus unemployment insurance, and payroll tax for each employee. When you're the boss and the grunt, you pay both sides of the coin, and should price your services accordingly to the market.
Ned Flanders was the only American who liked taxes.
Most of my struggle with paying taxes is that it is so difficult! Why do I have to tell the government how much I owe them?
The IRS already knows how much you owe. For some reason they don't tell you so you have to waste 13 hours filling out those forms. Unlike other countries.
Whenever people talk about why we need taxes they often mention roads and fire departments which cost almost nothing relative to our budget. They almost never bring up the huge line item in taxes of checks going to old people (social security) who by and large have more money and padding revenues of hospital systems via Medicare
Social security accounts for less than 3% of the discretionary budget, and medicare accounts for another 6%. By far, the largest single drain on the tax base is the military budget, which acts to provide transfer payments to corporations (defense contractors) and to localities with a military base (through service member local spending).
www.nationalpriorities.org/campaigns/military-spending-united-states/
@@Lawrence330 yes because most spending is not discretionary spending. Social security and Medicare are mandatory spending so you’re being misleading
@@Lawrence330 but I agree military spending is bloated too. Cut all the spending!
Philip's got a new tattoo? Looks good. 👀
Looks like a barista tatt. Coffee plant on the shot-pulling arm?
meh looks less profesional with finance tbh.
@@kinokunia I work in finance and would never in a million years get a tattoo for myself. But based on my experiences, I completely disagree with you.
@@yabbaguy You meant he looks more trustworthy financial advisor with it? Maybe its just me, cos im from Asia.
Yes clementine, it's oranges because of their daughter's name
I don’t like paying taxes simply because I have absolutely no control as to where my money goes. They literally take my money and decide where my money goes for me 🙄
You're looking at it the wrong way, though. For one, you're not the only one paying up, meaning you're not the only one who has a say. Conversely, if people only paid for things they felt were only important to them personally, few things that we take for granted would be properly funded. Pragmatically, no government expense is something everyone will 100% agree on.
But if you would like to help tilt spending in a way you prefer, elections (or running for office) are the best ways to do that. Especially in local elections, some platforms (sometimes known as "Propositions") are on the ballot for you to vote on. But just know that there are consequences to the siren song of "Cutting taxes/spending", especially if the campaigner is being ambiguous.
Notification squad! Great share and explanation. Can definitely use this in my economics class
Not really, too much politics in the video. Tell them to stop pushing politics on people
People hate taxes because too much of it is wasting the money. I was military logistics and it made me sick how much the government would overpay for stuff. An item would be hundreds of dollars when the exact same item (brand and model) would be on Amazon for like ten. What made it worst was that the government would be bound by contract to buy it!
Because taxation is theft
It isn't, but try again
@@RedLeader327 your choice is pay taxes or go to prison... so yeah its theft/extortion/coercion hence the name, if it was voluntary it wouldnt be called taxation
@@RedLeader327 You didn't even give 1 argument you thief
In Hungary(Central Europe) taxes are calculated automatically, including returns, etc. You can review and change it online if need be, but most citizens do not have to do anything.
I read it somewhere: "The US is a third-world country in a Gucci belt."
That's a gross exageration. I've lived in a 2nd world and the US is still generally better off than that. But, there are definitely pockets that are legit 3rd world level of development like some of the poorer reservations and parts of Appalachia where running water and electricity aren't yet available.
Have you have been in Brazil? Lol
That must be a quote about your mom, not US
@@zenitfan4life, someone has a very fragile ego.
@@brbosi that's not the only way thing your mom's got that's fragile g
I don't like paying taxes because I feel the government isn't a good steward of my money. Third party spending is the most wasteful. Let me keep my money and find the best way to spend it efficiently for my family. I don't like govt deciding my values and priorities. Stick to military and infrastructure.
Where's the military and infrastructure money coming from?
Paying just taxes is fine, the issue is most taxes and rates are not just.
Because there is no transparency and politicians are payed way to high compared to regular work people.
There was never need for central bank or income taxes until they decided to change that one Christmas morning in 1913. It was used to siphon well from the public and then when Nixon cut the dollar from gold in 1971, they've been able to siphon even more
Nudges == Loopholes
Taking out the loopholes would mean giving the government less opportunity to nudge people to do things that aren't in the people's best financial interest. Less power for government isn't something anybody in government sees as a good idea.
people have made fortunes off Crypto, some have lost money. It is volatile, but people make money off of volatility too. Paying taxes won't bother you when knowing how to earn more
I see Crypto as ultimately becoming a reserve currency for banks, playing much the same role as gold did in the early days of banking
Investing into crypto should be in everyone's mind because you will ecastic for the decision you take today
Years to come, people will look back and say I'm glad I started trading
Trading crypto now will be very wise but trading without a professional is not advisable
People are afraid of investing because of the high rate of scam in the business.
All I think about is how much more money programs would have if we focused on tax compliance with the rich. If we did it like other countries, the IRS could spend less time checking most Americans' work and focus on the few where it's hard to track business expenses.
Wow 11 hours on average to do your taxes!? It takes me about 15min to do my taxes in the Netherlands.
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To me, 5 minutes in Chile.
Closing the loopholes is the best way forward with this. People loved it when they could buy diner food at the round price on the menu. If the IRS took this approach of transparency, they’d be able to enforce tax law much more effectively
As a Canadian what I don't understand is when I work my ass off and put in a bunch of extra overtime I apparently get bumped up into a higher tax bracket and I see a huge diminish on the returns of those extra hours. It's almost like you're being penalized for working harder ? It's not like its easy, passive income, I'm climbing ladders, carrying pales of paint, and sweating in the sun for it.
That's a common American myth that floats around, so I would double check that.
@@KristoKorpshe did say of the extra hours
The way she said “I just looove paying my taxes” made me laugh. 😂
The US Government: Here's $2400 because covid.
The US Government Again: Here's $2800 because covid.
The US Government in 2021: Yeaaaa I'm gonna need all of that back...
THIS ^ is stupid no matter how you slice it
i feel like me and the government have just been venmoing each other back and forth this last year. gets a stimulus... has to pay taxes shortly after
Living in Michigan I am well aware that my tax dollars are paying for roads that are kept in extremely poor condition.
If taxes are used to better improve our quality of life then maybe most people won’t mind as much*. But we all know it just goes to corrupt politicians.
It's time to rise up
I love listening to people whine about taxes, while also whining about pot holes, poor social services, and suckling up to the police
Actually they Winn more tax payer fund collage social studies teaching and teaching freedom is bad. And even historically lies already disproven by trickle do economics not working despite history of car or Thrift stores .
What you think of welfare srunges projecting on the net tax payers being ones to not pay their fare share
OK, I'm one of that 83%. Every year I have an obligation for financing some tax filing software so that I'd file the exact information that the IRS already has. This country with its lobbyism is so underperforming. But this ridiculous loophole makes HR Block, TurboTax, intuit.... filthy rich, so I guess not all is lost.
I don't care who the IRS sends, I'm not paying taxes.
I only didn't pay taxes once cause my income was so low I was basically homeless, they still sent a bill to me. I was like jail......roof and food, might be a good deal.
How does mortgage tax deduction make the houses cheaper? People come with more dry powder and they raise the prices due to tax deductability. I guess builders can sell the houses at a higher price. So renters are subsidizing house builders?
Aren't the people on welfare the ones not paying their fare share.
Corporate welfare is a bitch. Yes
What is corporate welfare. Not robing some one isn't giving people money
The problem is when they star creating taxes for things they didn't have before, Green products have nudges now, but when they become the norm, they are going to be taxed like normal cars and gasoline are right now, and people won't like that. Spain created a controversial tax for solar energy called the "sun tax" and it showed in the elections the backlash.
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In the UK, as long as you are not self employed, taxes are automatically taken out of pay check and there is nothing to do at the end of the year.
I think the biggest reason why people don’t like paying taxes is because they don’t feel like there tax dollars are being used efficiently. The government in general is very bad at providing value in a efficient and effective manner. Great video!
Or we live a majority ruled democracy where those don't boat tax. Receive taxes have most say. We even project saying the net tax payer s ones not paying their fare share .
@@osmosisjones4912 we actually live in a constitutional republic
@@harrychufan the last remnants of that is the electoral collage . With out the electoral collage america becomes a complete majority rule
Paying taxes sucks when you know the money is being spent on things you don't agree with or the government is not using it correctly. That pisses me off. I also believe we shouldn't be paying any more than 5% income taxes. If the government can't survive off of 5% (~$1 Trillion/year), they need to be shrunk down!
0:47 Pretending that Americans actually get affordable health care with their tax dollars made me laugh so hard I almost pooped my pants 😂
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The change should come through EDUCATION.
"Closing loopholes" is a silly concept. Take IRA, Roth IRA and Backdoor Roth IRA, for instance. These are not loopholes you need to shut down, but teach kids from young age how they work. Tax write-offs? The same thing. EDUCATE!
IRAs aren't "loopholes," they are designed to encourage people to save for retirement.
A loophole might be something like a business paying payroll taxes for each human worker, but getting a tax deduction for each capital investment in automation technology. Literally a tax break to replace people with robots.
Hahaha I laughed so hard at the guy having a beer with the tax icon haahhahaha
Taxes are "voluntary compliance", but if you don't "volunteer" to comply, you'll be prosecuted, found guilty and incarcerated. Now this is my type of volunteering
There's already a free-file option for people earning below $72K per year. May be IRS could follow the Netherlands/Japan way of sending the precalculated forms for those earning $72K or less..
Nice job slipping in the corona beer, lol
I don't mind the taxes when money is being spent and earned in the country, but to have to pay taxes when you reside elsewhere is ridiculous!
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Instead of coming after the citizen for money maybe the federal government should balance their budget and pay off their debts. Oh wait who's the irresponsible one here, god forbid us citizens protest the fact the government takes 40% of our earned income while they spend frivolously. Most people would be okay with some level of taxation if the budget was managed correctly.
Stop trying to get me to not hate taxes!
FYI: In the US in 2017, the top 1% of income earners paid 38.5% of all income taxes, the top 10% paid 70.1% of all income taxes, and the bottom 50% paid 3.1% of all income taxes. I'm certainly not in those first two groups, but they paid much MORE than their "fair share." How does forcing the people who make $1 more than you to pay more in taxes, help you specifically? That inclination sounds a lot like jealousy and greed to me. Many of those folks are the ones responsible for employing much of America. Many small businesses are flow through entities, so the income hits the owner's individual tax return. The problem isn't with taxes, the problem is spending. Its the same problem since at least the 1960s, and its only gotten worse. Both parties are to blame. Presidents and Congresses. Domestic and Defense Spending. Low interest rates from the Federal Reserve only shield the problem temporarily because it allows the Feds to borrow more, cheaply. What happens when interest rates rise to historical average levels?
In Switzerland we live in a middle ground, with a very easy software to use for filing our taxes, but still having to do it annually. And many people recurring to paid expertise.
We hate paying taxes because we want to keep our money
The book Creature From Jekyll Island has all the answers you need. Use to be only corporations were taxed. Since 1913, we taxed on an individual basis. Now we give our tax money to foreign governments.... Sickening.
I'm fine with taxes except for income tax.
I love how the federal government helps out with programs in my state. For every dollar they take they'll send back 25 cents
Great points about loss aversion. We hate waste even more, and no wastes money better than our government.
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Why we hate paying taxes? well... it is this strong arming. Don't fork over money, or else. Plus, the redundancy. Why do we need to file anything when the IRS already knows?!?! I much rather voluntarily contribute into sections of government and receive at least a 1% dividend, instead of having to be forced to contribute to the ether.... why not have a staking model instead of this involuntary strong arming?
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People not paying any income tax at all but still getting a refund need to pay their fair share.
Uhhh cause they take enough out of everything we do? Get paid, pay taxes. Win the lottery, pay taxes. Spend on items, pay taxes. Every year, pay taxes. You never get a bonus from them inside your paycheck though
Govt revenue hasn't increased that much, if at all, no matter how high you hike up taxes. Remember the '50s and how they had a 91% top earner tax that was easily avoided BY THE RICH?
@@SimGunther it’s because with that high of a tax rate, they either didn’t take a salary, or the cost of taxes was soooo much, that it was enough to justify millions of dollars to lobby in Washington to crooked politicians that they gave them personal exemptions. There was a movie director who got a loophole in place for only movies he made to be tax exempt.
Stop the still, stop the taxes
If you say 'I.R.S' three times in front of a mirror, a random libertarian will show up to argue with you.
Here in Australia the government does 90% of the work since like over there they already have all your info, know how much your employer paid you ect....
So we just add some deductions and all done. Takes about 15 minutes.
Seems so odd the IRS makes you tell them all the info they already know?
Can you do a video on retirement annuities?
I worked in a summer camp 3 summers, at the end of 2018 the rules changed so I was suddenly forced to file a tax return for my 2nd and 3rd summers. Single most stressful thing I have ever had to do. The ironic thing is I paid more income tax to America than I did to my home country - I actually got a rebate coz my income come in under the tax free threshold. Turns out you guys don't have a minimum tax free income amount anymore (which I think is partly why I had to file after my 2nd summer was done)