We've made a follow-up to this video, that examines the reasoning and debate around a 70% marginal tax rate: kzread.info/dash/bejne/lIuGsY-GZJrLc7w.html

@MercJB

4 жыл бұрын

Why did you add a political jab to the republicans at the end without adding the 4% tax bump that Bernie wants. Most people I would assume fall under 22% bracket and currently pay 22% on that. Bernie would bump it to 26%

@MercJB

4 жыл бұрын

Not to mention taxing people who make the most money 70% instead of 37% would make them want to reduce costs (aka jobs). Cutting their taxes while still keeping them higher than the average rates still promotes growth.

@willoughbykrenzteinburg

4 жыл бұрын

@@MercJB Because this is Vox.

@jarjarbinks4744

4 жыл бұрын

Jake M The 4% increase is for Medicare for all, so you likely save money because the 4% increase isn’t as expensive as private insurance with premium costs and add on costs

@braxtonhicks4179

3 жыл бұрын

@@jarjarbinks4744 you are being lied to

This is legit the first time I understood tax brackets... I also never assumed I knew how they worked, simply that I had no idea how they worked.

@adamnagy1832

5 жыл бұрын

I hope you never voted in your life then. I think it's more responsible of a person not to vote if he doesn't understand even the basics such as tax brackets.

@Swagalious689

5 жыл бұрын

@@adamnagy1832 yep.

@mrcarrot455

3 жыл бұрын

Yea

@tronophono913

3 жыл бұрын

But now he knows. And knowing is half the batlle.

@amir-mahdikamali1186

3 жыл бұрын

There's a mathematical error in the visualizsation. They've multiplied the income with percents instead of a decimetrical numbers.

Waaiit, you're saying that people debate about things that they don't understand at all? I'm pretty sure that never happens.

@andrewbarone6575

5 жыл бұрын

Neverrr lol who would do such a thing

@Denverian

5 жыл бұрын

Welcome to America!

@altrag

5 жыл бұрын

Especially on the internet!

@brokkrep

5 жыл бұрын

Yes they do understand it... At least they say so

@llamaliammm

5 жыл бұрын

Ur forgetting its america. The politicians there r just out of this world.

This is one of those things everyone should know, but isn't taught in school for some reason.

@LaFonteCheVi

5 жыл бұрын

@@AnHeC ". How can anyone NOT read up on taxes?!" For most people, there is no reason to, nor does it even occur to them. Quite frankly, there has never once been a point in my life where I felt the need to research this in detail. Taxes are broken down on all tax forms and pay stubs. There really isn't a reason to look past that for most people. Plus it isn't a issue of "not knowing" for most people but rather being misinformed. Most people think they understand tax brackets, when in reality they don't. When someone thinks they understand something, they rarely peruse researching it. For someone who likes to pretend they are an intellectual, you sure are naive and ignorant.

@ryanminaker157

5 жыл бұрын

How would someone know to look for something that they did not know existed may I ask

@ryanminaker157

5 жыл бұрын

haha well put lfront

@joseguzman5875

5 жыл бұрын

@#BLINK JJRL it should be taught in school, or at least offered. maybe a simple basic life skills class.

@BBCjer

5 жыл бұрын

@@AnHeC You're a headass

This "Tax Bracket" system is how 99% of the developed coutries use. Yet, too many people don't understand this basic concept. We need to teach this kinda stuff in Elementary School Math class.

@alonsovalencia3362

4 жыл бұрын

We know how taxes work, also US has low taxes compared to Europe countries and there are other taxes not taken into consuderstiobs, they also don't talk about the effects of high taxes in the economy, specially for corporations

@javadose317

3 жыл бұрын

Why do we need to know they are taking it out of our checks anyway

@tpohne1965

Жыл бұрын

​@Flame Not sure if Germany is a developed country, but we don't have such tax brackets. If you are in the highest tax class, ALL of your income is taxed at 42%. And if you aren't married and have no kids that tax class starts at roughly 60.000 $ per year. Plus, we have a 7% sales tax on groceries and a 19% sales tax on everything else. And with every gallon of gas, almost 50% of the price is taxes and fees. And, and, and...just saying.

@grassytramtracks

Жыл бұрын

​@@javadose317 it is relevant - people can misrepresent the tax brackets to make an idea look bad, such as saying a new tax policy will cause a pay rise to cost you, when it never can. Tax is a very important issue and different people have very different ideas about it

@PFGFrankly

2 ай бұрын

we need a class in high school for this stuff, basic living class, its mandatory before graduating

Taxpayer: "Nice tax bracket system!" Lady liberty: "Thanks! It has pockets"

@ShaudaySmith

5 жыл бұрын

LOL! Well played sir.

@4nna5

5 жыл бұрын

this is a shamefully under-liked comment

@calvinhoward3808

5 жыл бұрын

Can someone explain it?

@4nna5

5 жыл бұрын

@@calvinhoward3808 women's clothes often don't have pockets, or have fake pockets or some other bullshit, so we often take pride in any pocket-y clothing - OP related the tax pocket system spoken about in the video to this clothing problem. Hope that makes sense c:

@nazirbailey5427

5 жыл бұрын

Calvin Howard r/woooosh

Just to show you all the math clearly. The person who makes 84,000 USD Pays 11,258 USD So 13.4% of his income is his effective tax rate. If he was paying 22% of his income he would have to pay 18,480 USD

@aeon9311

5 жыл бұрын

A person who makes 200 million a year would be paying 70% on the upper 190 million dollars, which completely dwarfs the lower tax brackets. In practice, it’s almost 70%. The first 10 million can be ignored to simplify the math, as they are utterly irrelevant to someone who makes 9 figures. That’s why politicians say 70%. Everyone knows how tax brackets work. It’s just a simplification.

@marekbottrill8070

5 жыл бұрын

Aeon Yeah if you're a multi-millionare. So they're not being genuine when adressing the general population

@iruns1246

5 жыл бұрын

@Aeon, the tweet shown at the end of the video clearly disproves your claim. And I've seen right wing articles clearly doing the math incorrectly. And of course your math really works if the person makes far beyond the last tax bracket anyway. If you're talking about someone making 20 mills (A LOT more people than ones making 200 mills) your simplification is just horribly wrong.

@CosmicHippopotamus

5 жыл бұрын

Aeon You're forgetting about deductions. All multi-millionaires are taking itemized deductions to the point where very few ever get taxed with a high effective rate. Many people in that range paid the AMT (alternative minimum tax) which was less than 30%. The 2017 tax law vastly reduced the number of people the AMT captures which effectively means there are billionaires that don't even pay 30% in taxes because of all the loopholes they are taking advantage of.

@stanj85

5 жыл бұрын

@@aeon9311 LOL! Literally everything about current right wing politics proves that people, in fact, don't have any idea how tax policy works.

Explaining that didn't seem very taxing at all.

@Joesolo13

5 жыл бұрын

Very punny

@jayquanbable

5 жыл бұрын

A pocket full of information

@benjo_5

5 жыл бұрын

I see what you did there

@internetperson9813

3 жыл бұрын

My cat is making a bit of a bracket right now, she hates puns.

I had zero idea this is how taxes worked.

@jhuerd

5 жыл бұрын

Aaron Glicco you still have zero idea, because Vox has zero idea. Vox, like AOC, assume that Rich people just shut up and sit down like the rest of us. When you make that kind of money... and a pretty congressional nobody informs you that we are coming for your money, you just simply move. They won’t be here long enough for the government to actually collect the money, leaving the rest of us regular people paying for this impossible green proposal. The existing tax rates on the rich are currently at tolerable levels.

@Wrest2165

5 жыл бұрын

@@jhuerd i understand it very well now, and no, you dont simply move, revoke your citizenship, job, status, and property. You dont just randomly trade nations dude. Plus any work you do in that country is STILL taxed by that country. I didnt know taxes were incremental instead of percentage based, but your statement represents one of even more ignorance. Taxing excessively rich people MORE at HIGHER RATES is not only fair, but morally right, financially right, and just makes common sense. Why do you care . I can guarantee with near certainty that you do not make more than 10 million dollars, more likely either a shill, or just plain dont understand how economics work

@jhuerd

5 жыл бұрын

👌 You’re, right.....I have no idea what I’m saying. Perhaps, think of the French as an example of one possible reaction to exorbitant tax hikes. The former French seem to think otherwise by their actions. They don’t like Smashed Thumbs either. money.cnn.com/2016/04/01/news/millionaires-fleeing-france/index.html

@utubestud

4 жыл бұрын

@@jhuerd who cares if the rich move. Not like they were paying taxes to start with..

@starmkd18

4 жыл бұрын

@@jhuerd other countries have higher marginal tax rates than here The rich are welcome to leave any day lol There is exit tax for denouncing citizenship The top 1% don't pay taxes anyway and hoard their money in tax haven islands

The number of people who insist that they got pushed into the next tax bracket and actually lost money from a raise/bonus somehow is astonishing. And they always insist they're right about how taxes work.

@ConradOPrice

5 жыл бұрын

I know exactly what you mean, it's mad. I've heard of someone who refused a raise thinking it would push them into the next bracket and overall they would actually lose money so they refused it.

@laloajuria4678

5 жыл бұрын

ppl are dumb and math is hard.

@amp7980

5 жыл бұрын

I actually heard this a million times from my dad growing up. So it wasn't until i was an adult that i realized that's not how it works.

@formsMostBeautiful

5 жыл бұрын

Raises come with more responsibility. It's not as simple as leaving free money on the table. Accepting more responsibility for a much lower raise due to the tax bracket is unquestionably an awful situation.

@thefrostychemist

5 жыл бұрын

As part of a family with many entrepreneurs and business owners, this topic often comes up. Vox is technically correct about how it works, but let me put it this way: You own a business. It's not nearly this simple (in fact, if I weren't simplifying it, the results would be even more distinct), but say you pay $100 per unit of any factor of production (labour, equipment, resources). Now suppose there are tax brackets at less than or equal to $3000 for 20%, and greater than $3000 for 40%. Bear in mind this is extremely simplified, hypothetical, and obviously exaggerated so that the chart doesn't run all the way across a few dozen rows. For every $150 dollars you earn, you need to use one $100 unit, leading to $50 net profit. Now, watch this: I: W/out Tax: Tax: O: Net: $1600. $2400. $480. $1920 $320 $1700. $2550. $510. $2040 $340 $1800. $2700. $540. $2160 $360 $1900. $2850. $570. $2280 $380 $2000. $3000. $600. $2400 $400 $2100. $3150. $660. $2490 $390 $2200. $3300. $720. $2580 $380 See how after it hits the bracket, the net gain, a lot of which goes towards growing the business to increase the Input (I), decreases, or at least doesn't increase as much. Yes, this is clearly exaggerated, but in real life, the effects are the same, albeit a lot broader, so the changes are harder to see at a glance (and I'm lazy and didn't want to do dozens of rows of calculations just to not even be read). Bear in mind that you definitely want a higher Input, because that means a few things: A. Workers are paid more B. More workers are employed C. More is being bought from other companies to allow those companies to increase their own Input. Hopefully this could help. :)

That’s how tax brackets work.

@deznal227

5 жыл бұрын

Good meme.

@derpmcgerp8062

5 жыл бұрын

Politician's policy proposals: *Lvl 1 Crook* Vox 2 and a half minute video: *Lvl 35 boss*

@abrahamarango843

5 жыл бұрын

But I have a plastic computer and you only know how to properly clean a metal computer

@MrMisjudge

5 жыл бұрын

I love that they appreciated the meme

@SeazBreeze

5 жыл бұрын

REALLY?

You should probably also include that this is earned income tax and is not the same as capital gains tax or corporate tax. Some people dont seem to understand that either.

@howsyamomma2673

5 жыл бұрын

Mandeep sivia If I’m not mistaken capital gains tax works in a similar manner to this

@mandeepsivia2847

5 жыл бұрын

@@howsyamomma2673 Ya if the asset was held for less than one year it will be counted as ordinary income and be taxed at the same tax brackets as this video. If the asset is held for more than a year it is taxed on different brackets, the highest one being at 20% for anything over, i think, $425 000.

@HedelTorres

5 жыл бұрын

Funny.. In Canada, you hear people complain that small business gets over taxed. That's wrong.. Tax on business is much lower than personal income.. And a small business can claim internet costs, some lunches, clothes, car. While the full time employee can't normally claim any of that. It's harder on the middle, full time, working class... I have a few friends who own businesses and brag how little tax they pay. Even though it is harder on the FT working class, which I'm a member of, I'm not complaining about taxes.. It's the price we pay for a society.. I am just not one of the defenders of the rich, everytime the government talks about increasing taxes.. I say go for it..

@sunni-junestephan4229

4 жыл бұрын

@@HedelTorres yes and no. Small business owners get a few additional tax write offs but it doesn't make up for the fact that owners have to pay their own CPP, don't get EI, don't get health and dental insurance, don't get matched RRSPs or a pension, as well as a few other benefits that employees normally get. They have to pay for those things out of their own pocket or from their business earnings which reduces what they can take home. When added up small business owners are usually at a disadvantage compared to employees. Unless of course they go to a shady accountant who writes off things they know they shouldn't be. But then that's tax fraud, and you can end up in jail. Those small business owners bragging about how little tax they pay, those are either people who actually made very little money, or are at risk of landing themselves in jail.

@lincolnduke

3 жыл бұрын

@@HedelTorres Yeah, they get to write off costs for the business. The internet and car costs have to be used for the business. You dont just get a tax free car as a business owner?

When your animation maker went on a holdiay

@sidolanters1394

5 жыл бұрын

i think they were going for fast over stylish with this one as it was an unscheduled appendix to the other video

@Mittn

5 жыл бұрын

Shivesh Poddar There’s a word for that, it’s animator.

@sidolanters1394

5 жыл бұрын

@@Mittn lol

@poppyorangeflower

5 жыл бұрын

@@Mittn HAHAHAHAHA. For some reason I found that HILARIOUS.

@Ganymede1001

4 жыл бұрын

It had to be simplified, so even middle school kids can decifer it

What we learned from this video: *Tax brackets are actually tax pockets*

@Weatherboy1102

5 жыл бұрын

Evariste Galois we need to raise the top marginal tax pocket

@utkarsh4386

5 жыл бұрын

​@@Weatherboy1102 what percentage of their income do you think the people in the top 1 percent should pay. Not Marginal, effective.

@psinformer1

5 жыл бұрын

I thought they were gonna say something new about a loophole or something, because as is it’s not complicated really, your money is taxed in sections, each a specific amount, once you go over the rest is taxed in the next section and rinse and repeat until all your income is taxed it’s not that complex

@jakehix8132

5 жыл бұрын

@@utkarsh4386 Modifying the marginal tax rate is what drives the effective tax rate, ehh. With the current tax code, I'd say adding 50% for overages following the current cap 37% after $510,300 is a good start (a few bucks after a citizen's millionth buck was taxed at normal rates, the next millions earned take a 50% hit vs the current 37%). This alone could double the standard deduction and put 10-20 thousand dollars back in the pockets of people who need it every year... at an unnoticed, welcomed by many affected, cost on people who make, not just one million dollars a year, but multiple millions.

@utkarsh4386

5 жыл бұрын

@@jakehix8132 what if I told you that in many states, if you are in the top 1 percent, you already pay over 50 percent of your income in taxes when including state, sales, property and miscellaneous taxes.

I taught this to my students today in class. I'm a high school Algebra teacher.

@someinternetguy1065

3 жыл бұрын

Good on you for teaching them this

@joesmith-dm9pg

3 жыл бұрын

aren't you not allowed to do that as a teacher though?

I'm 16 and just looking at getting my first job, and this video actually really helped me understand more about taxes. I was really confused and I didn't understand tax brackets, but now I do. Thank you so much!! 😊

@Avrysatos

5 жыл бұрын

I didn't understand it at 16, but when I tried to do my own taxes the next year i did look it up and figure it out. now you know for tax time. (and if you barely work and only make a little money one year you do still have to file by the way)

@tacosmexicanstyle7846

5 жыл бұрын

Absolutely do not ask to get paid in cash. This means your workplace can get away with abusing you because they won't have to register you as an employee for tax purposes. They could get away with underpaying you, not paying you on time, not insuring you, or affording you penalties in line with the law if you're injured in the workplace. Saving a bit on tax is not worth being vulnerable to abuse

@leopar3211

5 жыл бұрын

Jessica Ferry at 16 this won’t really apply to you as much. You will only get taxed for social security and Medicaid

@appleintosh

5 жыл бұрын

Matt Parker That depends on how much you’re making. You can certainly pay income tax as a 16 year old, if you’re making more than $12,000 in the year.

@leopar3211

5 жыл бұрын

appleintosh that’s why I said as much, my fault, I should have been clearer.

You tell me that grown adults don't understand tax brackets?

@adamtak3128

5 жыл бұрын

Sadly yes. It doesn't help that in America politics is religion.

@cjxgraphics

5 жыл бұрын

Yes. And we have grown adults that have never pumped their own gas too.

@mojominecraftmike

5 жыл бұрын

Voted and elected house members don't understand tax brackets ....

@Hi-res64

5 жыл бұрын

Not people who don't pay taxes

@Hi-res64

5 жыл бұрын

@@mojominecraftmike like Alexandria Cortez

Political comment

@TheInselaffen

5 жыл бұрын

I agree, but I'm foreign, so don't count.

@definitelyderek5815

5 жыл бұрын

Oppositional reply!!!

@natsumi1120

5 жыл бұрын

Go away

@OF01975

5 жыл бұрын

People who upvote this dudes shitposts are autists

@queenelizabethi5868

5 жыл бұрын

God damnit Justin. I'm at work but I'm still not safe from the ninja

Awesome video - thank you!

I honestly didn’t know this and thank you for educating me on this! are there links or books that go more into detail on this?

Very informative video. Raising the tax rates for the upper brackets doesn’t seem as bad now that I understand it more.

@TheBlobik

5 жыл бұрын

Assuming it will not cause offshoring of income, then indeed you may benefit from that. However, if you overtax the richest, then they will move their incomes outside of the country, and from your perspective they will be taxed way below what they were before. This is a very tricky thing, trying to find a sweet spot on the Laffer curve.

@HoboHunterRik

5 жыл бұрын

It's actually a really bad idea to tax the richest more. Just make a flat income tax rate so they can't abuse it and no one gets an unfair deal. If you want to live in the United States we need X% of your income.

@callowaymotorcompany

5 жыл бұрын

Hobo Hunter Rik No it isn’t, and you can’t post a shred of proof that it is. The tax rate on the rich is lower than it was after the Great Depression and the economy is worse.

@nicholasvsjesse

5 жыл бұрын

Hobo Hunter Rik No, fix the system so that no one can abuse it. Why we allow companies to offshore funds is beyond me, tell them they can either pay taxes or get out.

@bhaskarasuneil

5 жыл бұрын

callowaymotorcompany don’t forget the income inequality back then too. Income inequality today is far better than it was at the end of the Great Depression. So taxing the top 1% today is a lot different that what it would have been back then.

Mind blown. Years of confusion gone in a couple minutes. 😅

@DeffecX

5 жыл бұрын

@@AnHeC Who knows? Maybe some of us have Alfreds who do those for us, or maybe some of us didn't even finish High School! Or maybe I was one of the very, very few students who didn't pay attention to the very exciting tax class... Or even better maybe I am not from the U.S.A and taxes work differently? 🤔. Maybe you should ask the video creators why they wasted time making this video as it is expected that everyone understands taxes.

@AnHeC

5 жыл бұрын

@@DeffecX If you are literate there are no excuses. Information is widely available. Not knowing is strictly your choice. You can google or even go to a library (even homless have smartphones, but let's pretend you don't, just for fun). 'Years of confusion' means it was on your mind and you were too passive/lazy to chek or even just ask someone. Country you are from means nothing.

@MicahRion

5 жыл бұрын

Dariel Marte Awesome! Same here!

@Jenaeworld

5 жыл бұрын

@dariel Same!!!!! 😅

@princekatana8792

4 жыл бұрын

@@AnHeC Lol, I fit right past your no excuses excuse. When I was a kid I wasn't allowed on the internet nor could I just drive over to the library on my own since well I was a child and while yes I could have looked for books in the library myself when I was taken there but let's be real, who does that. All I did was ask my dad about it and unfortunately he doesn't seem to have understood the concept of tax brackets so I was incorrectly informed until this video.

I've always wondered about this. I heard from soo many people that they are being pushed into a higher tax bracket and can see they are making less money. I personally never saw it but figured they must be at the turning point from one bracket to the next. Seriously thank you for the explanation!! It really helped me to better understand something that they really should teach you in school.

You hear people all the time say they don’t want a raise because it will put them in the next tax bracket. This is a huge problem and good to know for the future. Everyone should know this

Geee thanks vox.... I could used this video like 10 years ago when I started to make money lol, but seriously, thanks, those visuals are on point

@rsync9490

5 жыл бұрын

Lol I learned this ten years ago for bookkeeping in high school......

@sean640

5 жыл бұрын

@@notthestatusquo7683 children SHOULD know these things HELL YEAH

@raquetdude

5 жыл бұрын

Were there no books or internet articles about that back then???

@estephanyrios7700

5 жыл бұрын

@@ShaunDreclin 👏👏👏👏👏

In the debate around AOC's 70% top tax rate you hear loads of people not understanding this concept, even on the news, which confuses me as a British person. the way tax brackets work is common knowledge in the uk and we get taught about it in school

@HenryJuliao

5 жыл бұрын

I was taught this in school as well here in the states. It's just that some of us don't pay attention. I'm sure that the UK has bad students too.

@marlo8528

5 жыл бұрын

It's not widely taught in grade schools in the US. I learned about it because I took an accounting elective in high school.

@therealnoodles7638

5 жыл бұрын

We learned about taxes to in highschool. In mathematics. In australia

@hunterhenryk

5 жыл бұрын

When tax prep was a manual form-heavy chore, I think more people, who did their own taxes, understood it. Nowadays, it's all software running Q&A wizards, even if you don't hire it out. The software does all the deductions and calculations. Even if you hire out, the tax preparers are running the same or similar software.

@hunterhenryk

5 жыл бұрын

You say they are greedy, but Americans are the most generous people on the planet. That's a fact. Look it up.

Government: you owe us your taxes Citizen: How much? Government: you have to figure it out. Citizen: So you don't know how much I owe you? Government: We know, we're just not telling you, and if you pay less you'll be charged

The brackets you had at the start of this video I think actually lent a more effective graphic than the "pockets."

There are misformed people across the pond in the UK too. Had to correct my mum who had grown up believing that it was better being a lower tax bracket because she thought it taxed the total income over a threshold, she told my siblings this and it would have negatively hurt their careers if I had not found out.

Here before conservatives chime in with their "I love Vox Borders and Almanac but I hate the SJW politics stuff".

@shingshongshamalama

5 жыл бұрын

"I love Vox except when they get Too Political by being evil libtards." *downvotes every single Vox video every time*

@sebastian-benedictflore

5 жыл бұрын

Love this

@PhedelCastro

5 жыл бұрын

Lyserberg Marginal tax rates are SJW politics?

@pseudophori6541

5 жыл бұрын

BillyGoat Anything can be “SJW politics” because “SJW’s” are imaginary

@davidfriday2926

5 жыл бұрын

I mean that’s accurate to how we feel 😂

I love how simple and short this video is and at the end it’s all sweet like “if your politicians are confused send them this” in a genuine attempt to be helpful.

My mind is BLOWN! I never knew that this was how one is to pay taxes. They MUST start teaching this in our schools.

Euhm, don't people know this already? I'm from the Netherlands, and we also have tax brackets, but I learned how to deal with it in my second year in secondary school... What do Americans learn in school?

@jenjuice432

5 жыл бұрын

That mitocondria is the powerhouse of the cell.

@therealnoodles7638

5 жыл бұрын

How to refuse vaccine and how to believe fake news

@NightDoge

5 жыл бұрын

How Christ our Lord wrote the American Constitution with his blood, sending every homosexual to jail and establishing God's new Free and Capitalist Kingdom. Until the Evil and wicked Obama came and tried to turn the frogs Gay. -- America! (CollegeHumor: if the other party won)

@Hi-res64

5 жыл бұрын

They learn the same thing Fox is not represent what Americans know and don't know this video was to purposely mislead people the youth and ignorant

@aeon9311

5 жыл бұрын

The whole point is that the highest bracket is set too low. 10 million dollars is a negligible amounts to thousands of ultra high income individuals. The tax would essentially take away almost 70% of their income, which is just unfair. It’s unfair to take most of what people worked for just because you need to pay for a massive welfare system. It’s legalized mob extortion.

For US viewers wanting a comparison to the United Kingdom (a 'halfway' between European high taxes e.g. Denmark which is often referred to in the US media as a paradise). The majority of people have 2 major forms of taxation on their gross (total) salary; Income Tax and National Insurance (NI pays for our healthcare - free at the point of use). UK Example of £52,000 (approx. $67,000) Income Tax in the UK (for FY 19/20) Everyone has a tax free 'pocket' of £12,500 ($16,000) All income hereafter from £12,501 - £50,000 (All income from $16,001 to $64,300 ) is taxed at 20% Income from £50,001 - £149,999 (All income from $64,300 to $193,000) is taxed at 40% Any income above £150,000 ($193,000) is taxed at 45% So; £12,500 ($16,000) tax free 20% on £37,500 ( £7,500 / $ 9660) 40% on £2,000 (£ 800 / $1030) So; on a salary of $67,000 USD (using UK Income Tax) you'd pay $10,690 in Income Tax. And then after NI (National Insurance) someone earning a gross salary of £52,000 / $67,000 USD would pay an extra £5,004 / $6450 in NI for healthcare. Overall; You would pay $17,140 (£13,304) in income taxes/NI - an effective tax rate of 25.6% - but the major caveat is that you have all healthcare paid for.

@robertyoung5785

5 жыл бұрын

The US has a tax free pocket as well. Even kids without a personal exemption that make around $3k end up paying no taxes, only the standard Social Security (around $200)

@stevewright9195

5 жыл бұрын

Good job

@TriplBBB2023

5 жыл бұрын

beautiful example. Thanks for putting in the effort :)

@rjfaber1991

5 жыл бұрын

Those are some pretty low tax rates, I have to say. I'm not comparing it to Denmark (can't say I'm familiar with their tax rates), but here in the Netherlands, it's quite a bit higher, although we too have an equivalent of National Insurance (we call it "sociale premies") which covers most of the cost of all welfare programs, and in the lowest tax bracket, these welfare premiums amount to more than twice the actual tax. (it's roughly 10% tax, 25% welfare premiums, and thus 35% combined). In subsequent brackets, the rate of welfare premiums stays the same, and only the tax rate goes up. EDIT: Looked at my most recent tax returns, and in the lowest brackets, the rates are 8.90% tax and 27.65% welfare premiums. Oh yes, and as for the whole tax free pocket thing, we sort of have that as well, but it's much more complex than just a single number, and depends on a whole heap of variables.

@laurent1144

5 жыл бұрын

This is really great information. Thank you for the explanation. As an American, I pay $4420 in premiums out of my paycheck (this money is not taxed) just for myself. Then, if I need to go to the doctor, I would pay extra, based on my plan. So last year, I payed approximately $3,000 in other medical costs. So on an income of $34,420 (before healthcare deductions), I paid $7,420 in health costs + $1965 in taxes. That's a total of $9386, or 27.3% of my income. So for everyone who says, "Yeah, but people in the UK pay way more in taxes," that is true. However, many Americans pay more in taxes + healthcare than people in the UK.

Parents: School will teach you how to make educated decisions School: Tax brackets? Those aren't important. Now, what is the mitochondria?

I knew it wasn't a flat rate cause the math never worked out that way and I always knew what a marginal tax rate was, but I didn't know EVERY bracket was a marginal tax rate.

94% of the comment section: "I learned this in utero. I explained Keynesian economic theory to my delivery doctor. Anyone who doesn't fully understand the tax code by junior high is clinically mentally disabled. My political opinion is really super valuable." 😉

@cityuser

5 жыл бұрын

lmao

@ericcheese7594

5 жыл бұрын

The U.S. population is also about 6-8% of the world total. Hmmmmm.

@ttrenchmiranda

5 жыл бұрын

actually, no, really, yall should know about that

@airey773

5 жыл бұрын

ElyssaAnderson #gold hahaha

@tigerburn81

5 жыл бұрын

But it's true.

Happy Friday! Hope everyone has a great weekend - thanks for watching our videos ✨

@luisarturohernandezramirez5910

5 жыл бұрын

This is very enlightening

@mugenjin205

5 жыл бұрын

You all are doing a valuable public service. Keep on making the great content! Enjoy the long weekend.

@masthebes

5 жыл бұрын

Please could you make a video comparing these brackets to other nations. i bet US citizens will be surprised how low their rates are.,

@DaYz12B

5 жыл бұрын

GOOD WORK GUYS KEEP IT UP

@socialminds9894

5 жыл бұрын

Thank you for the video Vox!

This is taking me back to the rolling calm of the TV stand coming into classroom, turning on some Mathnet. Well done!

I don’t recall learning about this in business class.... it actually makes me very infuriated.

@tronophono913

3 жыл бұрын

Women studies aint the only major that does brainwashing.

I still don’t understand. The American school system failed me

@dr.avalanche4994

5 жыл бұрын

Whew so much for cracking a joke, huh?

@enfercesttout

5 жыл бұрын

Only if there was someone who teach the importance of child care to people. Like some kind of teach "er"

@zf8604

5 жыл бұрын

Surviner funny thing is a good majority of my knowledge came from the Internet and documentary’s (I still read good books!) yes books are important,but let’s focus on having information be spread correctly because I just of easily been turned into a dumass

@hunterhenryk

5 жыл бұрын

You got the American self-loathing right. That's a core of the education curriculum, especially at collegiate levels.

@henriherrera9744

5 жыл бұрын

Don't worry, in other parts of the world is a LOT worse. Venezuela, for example.

*_Tax Cuts for the Filthy Rich_*

@ONeill01

5 жыл бұрын

@ls7orBust Absolutely not

@really4473

5 жыл бұрын

ls7orBust def is not.

@eisernfront8549

5 жыл бұрын

@ls7orBust After ww2 and industrial revolution, the corporate tax was 90% and the middle class and economy was much stronger. Now a days middle class and the poor get taxed more than the top 1%. Thus corporate welfare was born thanks to Reagan and the Clintons.

@zachmondial2172

5 жыл бұрын

@@eisernfront8549 ill take not how it works for 100 alex

@benjamin7114

5 жыл бұрын

Problem is the rich now have options , tax them more and their money goes away and you earn less from their taxes . Governments can no longer enslave rich people and their wealth like after WW2

Well now those pockets are more like 60%... (over 400k) but it Kinda defeats the purpose of wanting to become rich if you have to just give up 60%

This is an amazing video and teaches something everyone should know. I just wish they had specifically shown the difference in how much your tax would be with the wrong calculations versus the correct. The first calculation is $18, 480 The correct calculation is $11,258 With a difference of $7222

Thank you. Someone is purposely not informing kids about this stuff IMO. It’s pretty straightforward so why not explain it in school? I know several ppl from different countries that had it all wrong, including me until I started working full time,

@luketimmerman1808

5 жыл бұрын

@@AnHeC I've seen you on multiple comments now and I'm so confused why you are flipping out over this. I know that I have never been taught these things in high school (I'm a senior); it's not a matter of paying attention or not. It's not my fault if we are never taught applicable knowledge. As for your comment about googling things, that is exactly what people are doing while on this video, but just receiving the information in a video instead of an article. It doesn't mean that people have no interests or are just lazy; people research things that they either need to know or are interested in. A kid who doesn't work enough to even be taxed has no need for this information, and instead will use their time to fulfill their other interests. I bet that I've researched things about flight and planes more than you, but I don't go calling you an idiot for not sharing the same interests as me.

@nickthompson1812

2 жыл бұрын

I’m 3 years late, but it’s by design. If republicans can keep fooling low-educated voters into thinking these tax brackets affect them and not the rich, they can protect the rich and have the low-educated voters vote against their own interests. There’s a reason republicans claim schools are indoctrination grounds and there’s a reason they want to abolish public schooling.

@eatyourvegetables1449

Жыл бұрын

@@AnHeC the kids who don’t care and listen can become poor. But for kids like me and many other people, having mandatory finance classes would be great so I can understand how to manage my money.

So it's basically the equivalent to electrons/income filling up pockets/orbitals of an atom with specific orbital capacities/brackets! Edit: Lmao I had no idea that this comment would receive any actual attention😂😅 Soo, just fyi, this was a very random and in the moment theory and I understand that while it maybe right, it could also be wrong😁 So, like, be kind maybe?

@AllfatherBlack

5 жыл бұрын

If you say so, but now I really want to understand the hell you're talking about. Googling "electron orbital filling" now, I guess...

@samleyshon1482

5 жыл бұрын

Not really sub shells fill in a really bizarre way and it varies depending on the element and what is a around the atom eg ligands

@butterflyspinart

5 жыл бұрын

Please do not remind me of high school chemistry

@mihalis1010

5 жыл бұрын

Yes, compare one complicated subject with another, far more complicated and unrelated subject. Makes sense.

@colinyoung3685

5 жыл бұрын

In this analogy is the government a highly reactive element that steals electrons?

If you don't find a means of multiplying your money, you will wake up one day and realize that the money you thought you had, had been exhausted. Investment is a ladder to climb the financial wall.

I'm in the first pocket, really snug in their. Lol

Watching cos my networth is $1.

@erlendtryti

5 жыл бұрын

at least its a positive number

@kevineusebio

5 жыл бұрын

Considering most people are negative due to student loan and credit card debt that's amazing lol

@ricecristi

5 жыл бұрын

At least it’s not in the negative 😂, you can literally sing with all truth... I got a dollar I gotta dollar I got a dollar hey hey hey hey

@NavIsBalD

5 жыл бұрын

You owe 10 cents as tax

@aaronrosner8446

5 жыл бұрын

@@NavIsBalD You are not taxed based on net worth

My mother, whom herself is experienced with quite a few quite different tax brackets across several different states, frequently tried to explain this to me in the car, but 1) I never really GOT it (all that algebra and calculus and none of this?) and 2) no one else was speaking about taxes like they worked this way! Thanks for this!

This video should be required viewing before anyone is allowed to complain about their taxes on social media...

"Oh pockets. hmm so we gonna fill it, probably. Wait yellow pocket?? What? Oh no. annndddd you lost me"

Wishing everyone a beautiful and successful day.

@queenelizabethi5868

5 жыл бұрын

Thank you so much, you as well

@zain4019

5 жыл бұрын

SOMETHING STRANGE TV Thank-you :)))

I wish they would teach this in school.

@AnHeC

5 жыл бұрын

I wish people use the wonderful freedom of information and at least... google things. Are people that passive that they know only infor that has been spoon fed to them? Maybe it's like an IQ test to see who is a mindless zombie XD

@jhuerd

5 жыл бұрын

Rohit John ...no you don’t. This is a theoretical explanation. Think. If taxes are a hammer, and swinging the hammer takes a year to reach your thumb, flat on the table...Will your thumb still be there? Will you ever put your thumb back on the table?

bear in mind this was filmed 5yrs ago, the tax brackets have changed

That’s pretty interesting. I’ve been avoiding getting promoted all this time so I don’t be put in the next tax bracket thinking I’d lose money. Now I know this is pointless.

Did Americans not learn this in school?

I had to watch this twice because I didn't know how much each pocket could hold. I know now and I would have to say this is a very nice video and very nice infographic. Props to y'all at Vox.

@nicolasoke7421

5 жыл бұрын

How much could each pocket hold I'm still confused.

@kalidilerious

2 жыл бұрын

I'm confused because at first it was first 12k isn't taxed but then showed the first "pocket" 9.7k taxed at 10% ????

@eatyourvegetables1449

Жыл бұрын

@@kalidilerious that deduction was a whole different pocket. Deductions are not taxed, and the leftover money that you can’t put into deductions is put into the tax brackets. So the first pocket was 9.7k taxed at 10%. Hope this makes sense lol

@kalidilerious

Жыл бұрын

@@eatyourvegetables1449 ok.... so first 12k is not taxed. then the next 9.7k is taxed at 10%. right?... I hope...

Great information. Thank you. Please add one on the difference between tax credits and write offs. Specifically how home mortgage write offs work.

Super simple to follow and understand. I've seen videos about this before, but this one is the easiest to understand. Now, I know I get it!

1:27 That's how to pay exact change.

Australia has 0% tax for $18,200 and under

@surfie007

5 жыл бұрын

👍

@OF01975

5 жыл бұрын

surfie007 australia is a shithole

@WoodLard

5 жыл бұрын

@@OF01975 Australia has free health care

@fjalls

5 жыл бұрын

@ls7orBust Quite not the right word but I agree

@pb_and_jj

5 жыл бұрын

@ls7orBust how would you run a government without taxation?

I wouldn't mind paying taxes, if the Government wasn't such a buffoon at wasting taxpayer's money. Taxes should be spent locally first, then federally. I care about the roads, bridges, tunnels, transportations, school, law & order, and community, of my local residence. I don't care about the low funding of Schools in some remote corner of the nation. But, taxes are spent federally first, then locally, which is why most of Americans are suffering because Government is horrible at allocating resources to where they are needed the most. People living in the local community know best where to spend the tax money, than a bunch of Politicians trying to figure out how to spend money from a building in DC.

@VitaeLibra

Жыл бұрын

It's not that they don't know. It's that rich places, which don't need more stuff, get priority because they're rich

Forget algebra. This is the math we need in school!

Thanks a lot for that video. Now I finally understand how to guess where that green is going.

I'm 18, and I know this. I'm wondering how many people look up about tax deductions than arguing about something they barely have enough knowledge of?

Thank you --- I have had a tough time discussing this to folks while debating taxes.

This was actually very informative, I learned a lot thanks!

Good video, I learned this stuff in an Econ class a couple years ago, but this was a good reminder of how tax brackets actually work

I never knew that! Thanks for the excellent explanation.

What! The first example is what I really though how we were taxed. Thanks for keeping us informed, keep up the good work!

I was just taught this the summer before college. I’m glad there’s a video I can send my friends now tho

As a first generation immigrant, thank you Vox!

Thanks! It's a simple concept that can easily be miss understood!

I couldn’t send them this video. It doesn’t address property taxes, state taxes, local taxes, etc. For some upper middle income people, you’re already dangerously close to 50% taxed.

Thank yooooou, Vox!! I didn’t realize I needed this lol.

This is extremely important to know and very very common misconception.

More informative than my high school finance class

You just confused me more 😂😂😜

I feel fortunate that my education didn't fail to teach me this. I don't think I'm "smarter than everyone who didn't know," just really sad about the state of our education.

Why don't schools just play these educational videos instead of teaching George Washington fairy tales.

@colinyoung3685

5 жыл бұрын

You are aware that George Washington was real right?

@Mr.FastZombie

5 жыл бұрын

There's probably some teachers who play these videos. The problem is that teaching stuff like this isn't a required part of the curriculum.

@uncleubi9008

5 жыл бұрын

@@colinyoung3685 I think he refering to myths we put on Washington like the wood teeth and cherry tree in a mocking manner. I think is i called hyperbole.

@Mrwiseguy101690

5 жыл бұрын

@@colinyoung3685 I'm pretty sure he was talking about stories like the cherry tree.

@nopasanada5498

5 жыл бұрын

George Washington's wooden teeth chopped down that cherry tree and he refused to lie, damnit!

Eerily similar to the reptilian combat competition brackets... keep asking questions

@ohmario1882

5 жыл бұрын

Great satire, man.

This was a really simple but informative video, thank you!

Very helpful video, I'm lost about taxes and probably hurt my self, however I try to find on IRS website the definition or mechanics of tax brackets and no luck found them, can you please provide you information source.

wow vox is really out here teaching a whole month of australian high school economics in less than 3 minutes i’m shook

@juch3

5 жыл бұрын

This one is middle school economics for me (from your neighbors up north)

@loughlinpatrick

5 жыл бұрын

S U P R E M E well i don’t think anyone would accuse australia of being a smart country lmao

518 people dislike math

Johnny still has me on this channel.. and I’m liking it, even when it’s not his videos

This should be taught in all public high schools.

Why so many dislikes? It's a good informational video

@zachmondial2172

5 жыл бұрын

What are you talking about

@Hi-res64

5 жыл бұрын

It's not a good informational video it's implying first of all that rich people pay low taxes and poor people pay any taxes at all this video was created to purposely mislead the sheeple

@gsteezy39

5 жыл бұрын

Hi it is an informational video and i haven’t heard the pockets analogy before which is honestly a better way to think about it, but vox’s channel and other videos are the reason this has so many dislikes

@RaphPorsche

5 жыл бұрын

At the beginning is very informative for people not familiar with income taxes but it implies very leftist propaganda when it mentions showing this video to "republicans" who are against tax increases. I´m a not a Republican but IT DON`T MATTER. ANY MONEY IN OUR OWN POCKET IS BETTER THAN ANY MONEY BEING SPENT BY BUREAUCRATS IN WASHINGTON DC!

@andystith871

5 жыл бұрын

It's grown adults, brainwashed into grunting 'nuh uh' whenever their pet theory is demolished by high school math.

I've known this from the very beginning, i'm still paying too much.

@JJerry-mh1mp

4 жыл бұрын

which country and what % ?

This was much more useful to me than 2 Semesters of Accounting

I cannot believe that I once had a company accountant at a mortgage company tell me that if I earn less money then I will pay less in taxes, so I should do that. UGH.

It's pretty scary that this video was necessary at all. Who doesn't know how tax brackets work?

@Hi-res64

5 жыл бұрын

It wasn't about that it was about misleading you making you think poor people pay income taxes which they do not

@sownheard

5 жыл бұрын

How is thought taxes in school?

@diegovillacrez8349

5 жыл бұрын

Literally every single Millennial who wasn't taught it in school

@sloppyjoe9156

5 жыл бұрын

I didn't and I just got my first W-2 (I'm 19 and in college)

@TheAmericanAmerican

5 жыл бұрын

Dom Thorrington Fox News watching Americans

This is basic knowledge

So how could that politician saying 70% of your income will be taken away NOT accountable..... sad

Now explain credits and above-the-line deductions. Just a quick fact to consider: Once it is said and done most families making under $50k a year do not provide any source of federal income tax. In the US, the top 1% owns 38% of the wealth, and pays 39% of the federal taxes - more than the bottom 90%. Seems pretty fair to me.

Visual learner here and this make so much more sense then when it was explained to me back in home economics class lol thanks Vox

Ok seriously, thank you for making this video, Vox!! 👍🏻👍🏻

This is literally the most useful video i will ever see.

Thanks for the info :)