Low income you got state and federal assistance High income you got state and federal loopholes Middle class pays the highest per dollar earned in America with the least state or federal benefits
what i want to know is when more federal taxes are paid how does that benefit the poor and middle class? sounds like it only benefits the government to me. maybe we should think about decreasing taxes on everyone then instead of raising taxes on a few
Misleading title, I was gonna watch this as i am an american and want to avoid paying taxes but this is about corporations and ultra wealthy individuals. I want to know how to avoid taxes as a common person.
Open a business. Then you can write off expenses for the business. Thus, reducing net income and tax. Invest your money in stocks. Then use it as collateral for a loan. Rmb debt does not get taxed. Then when you sell your stocks to pay back the loans you only pay 50% capital gain tax. However, all of these option involved risks. The rich can do this on a regular basis because they can bear the risk. People should have a basic financial education before they complain about taxes.
The opening remark by Biden is priceless. He speaks as if he wasn't a member of Congress for the last 500 years. If he had a problem with the tax code, he should have done something about it.
Umm, where have you been for the last 14 years? Yes he was in Congress for the 2001 tax cut, which wasn't the big benefactor for business. That tax cut happened in 2017 and was a Republican push. When is it Biden left Congress brainiac?? 2009??? You know he was VP from 2009 - 2016. Then he was out of office for 4 years, being a private citizen. Then he was elected pres. So, whatever CONGRESS has done over the last 13 years, he had nothing to do with, and for most that time, Republicans controlled Congress. So, REPUBLICANS controlled what went in front of Congress to vote on. Republicans also controlled Congress in 2001 for that large tax cut. They were also in charge of Congress in the late 90s when they lowered capital gains tax to the criminal level it is now, or has fluctuated around. Clinton went along with it because Republicans threw him a bone with some program or another he wanted. So, ALL the tax cuts over the last 25 years were Republican efforts that THEY put to the floor and passed. For two of those, they also controlled the Exec, in 2001 and 2017. BRAINLESS. Hey let me know when the Constitution changes and the minority in Congress gets to decide what bills go in front of Congress.
@@johndoh5182 Nice rant John. The corporate tax rates have been low for decades. If you need to make excuses for the POS Biden, then go right ahead. Dems don't do anything when they have control and the excuse is that they don't always have control. Managed to shove through the ACA - Just managed to spend $6 trillion! Speaking of brainless, John.
Not to mention he was the senator of the state that’s essentially America’s biggest tax haven (Delaware). There is a reason like all major companies are registered as Delaware companies. If he was really serious about stopping these tax breaks, he would have fought to change Delaware’s loopholes years ago.
lol its easy 800billion on the military a year! wasting 500billion thats not needed, but as long as the government keeps growing the military they get to charge the Americans more each year
How about a report of how taxes pay for all the benefits you receive? Roads, emergency response, etc etc. I’ll support your report if you support mine because I think you’ll find that a lot of what you pay in taxes is used by you and you are just completely ignorant of that. Let’s compare that to how much corporations waste on exec perks, golden parachutes, ill fated initiatives that workers know will fail. I’m guessing that most corporations will not show up so we’ll.
@@FitzyD5 If you got an actual look at government spending you would find that they are raping us! and every year they keep spending more and more to force us in to debt. They already destroyed this country and gave us away to china! America is on its way down while china is pushing up and we have joe biden gettng rich while he sells out the country.
Funny how cnbc are hypocrites the media doesnt ever pay there fair share of taxes lmfaooo yet they repeat the same thing to make money like they care anyways
As a government auditor and economist don’t let this 8 billion dollars distract you from the fact the US government is spending TRILLIONS of dollars over budget. No amount of money/ tax increase will satisfy the horrific inefficient government spending. This is a distraction from the current financial crisis of the US.
The government creates "government programs" that produce no product. Just gave $40 billion to Ukraine. That about $110 for every person in the US population.
@@nathanjarboe4927 Yes, it does. Why are individuals taxed at a rate of 30+%,. but Amazon (which pretty much abuses the majority of its workers) pays 5% tax???? This is just barbaric
I personally put my money mostly in the stock market, since its appreciation is not taxable, and then when I sell, I find ways to make the income non-deductible in taxes. I 'm currently sitting on more than $327k of cash, and I'm throwing it in the market. Just thinking of how to not lose it all, since the market is red.
By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money, and and handle taxes. I know someone who made over $350k in this recession influenced market, but to the best of my knowledge, it was through a financial advisor.
Lack of information can be a big hurdle. I've been making more than $21k passively by just investing through an advisor, and I don't have to do much work, and the money is not taxable. Inflation or no inflation, my finances remain secure.
I really don't like making such recommendations, because everybody's situation is unique. But I have been working with Sharon Louise Count for about four years now, and she's really, really good. I think she's got a contact website or something.
Your business will make you rich but investment makes and you keep you wealthy, we all deserve to be successful and have financial freedom, I pray everyone here becomes successful
Here’s a thought. Instead of vilifying corporations for following the ridiculously complex tax code as well as they can, why not put the blame where it belongs - the US congress and the White House who makes and enforces these laws.
I think it’s clear. The government outsourced their job to corporations. Now both are costing the people and like a lot of people neither will take responsibility only blame eachother.
If you go back and read the records from the debates about the 16th Amendment, most of the problems with income taxes were described in advance. You should pay taxes for what you damage and consume, not for what you produce. Cue the fools who have no idea how consumption taxes can be designed along with the cheats who like the existing system.
what i want to know is when more federal taxes are paid how does that benefit the poor and middle class? sounds like it only benefits the government to me
@@craigclermond8001 - The government gives it to the larger banks who are The permanent private shareholders of The Federal Reserve Bank. They, in turn, receive requests from The government owned Centeral Banks and print or electronically invent fiat currency (dollars) & receive these fiat loans at 7% comounding interest Per annum repayable by taxpayers. This is not possible in this dimension. But as lingu as humans believe in The full faith and credit of The US government the bizzare system will continue. I like historically proven fallbacks that are are, non-reproduceable, proven, attractive or usefull, indestructable & divisable non- government backed things of value, like negative interest US Savings Bonds or Mob Loans.
@@goldcicvibefel7628 I'm, not an economist miss. I have no clue what you just said. I ask a straightforward question so if I could receive a simplified straightforward answer id be grateful.
I'd like to think it's the banksters and the lawyers more then just blaming politicians. Politicians are used to keep the spotlight away from the real and systemic problems.
@@youretheai7586 - Politicians with no legal understanding of Constitutional Law basics or who make up their own laws can destroy a nation and not even see they have done so.
If we are being honest with ourselves, taxes may be a major pain, just like they are for the wealthy. Taxes on income, goods and services, real estate, etc. It's wonderful to pay taxes, but we may also establish our own tax havens. Since stock market appreciation is not taxed, I personally invest most of my money there. When I sell, though, I discover ways to make the profit tax-deductible. I presently have about $327k in cash, and I will surely put it on the market. Considering how to avoid losing everything given that the market is in the red.
@Patricia Martin I've been doing this same thing myself. Can't get into trouble with the IRS when I have no income and all my money is in stocks. I don't like doing the work though. Lol. So I just invest through an advisor who does the stock picking. My money grows, and I'm tax-free.
@@KingDavid-jj7tk Do you know who Stacie Kristal Weber is? She frequently appears on CNBC. I keep my investments in tax-deferred accounts. I can evade capital gains taxes in this method. Your advisor could brief you on further possibilities.
But how are you able to put money into stocks without getting a salary? That's the difference between the "average" person vs the rich. If you are paid in cash from your job, you'll be paying the tax no matter what. But the rich can have ways to be paid that are not via cash. They can be paid directly as stock for example.
Bailouts for corporations that report record profits and pay little to no taxes are some how acceptable… bailouts for poor people that lost their jobs are seen as “hand outs”… “free loaders” and vilified.
What’s worse is that the poor have been convinced to support the corporations by standing up for the via out-dated tropes, false narratives about what they really are and not recognizing that capitalisms no longer exists because no corporation really wants a free market.
yes because poor people don't produce anything. So for the rest of us it doesn't matter if the poor person gets to eat or not but it DOES matter if mcdonalds exists or not
@@dcDOC19 increase taxes on the rich and your employer will cut your wages/benefits as customers are charged more for service. This moronic strategy of increasing taxes on the most productive in society has been tried a thousand times, it seems only the poor don’t invest in books to read the history of what happens when you do this which is why the government only pretends to want to do it and the rich pretend to be afraid 😂
@@andreycham4797 I totally agree with the wealthy providing jobs but the wealthy not paying their “fair share” has nothing to with me. Especially when they could afford to pay it.
Being self employed for 5 years the difference in tax breaks you can get is huge compared to someone working a normal job. I barely paid any taxes for 5 years to expenses and other loopholes and tax credits
Did you figure it out all by yourself or did you hire a tax person? I’m looking into starting my own business in a year or 2 once I finish my schooling.
@@johnmoore1495 Yeah did it by myself with turbotax. With that software it's pretty easy to do. Updates the amount of tax you owe as you go. Some of the biggest deductions I had were business startup and organizational costs, vehicles expenses for business (mileage etc), home office deduction (standard deduction based on office square footage), office supplies expenses, other miscellaneous expenses like electronics. Theres a lot more ways to get deductions or credits but it's good to know ahead of time what will get you the most. How most business pay little on taxes is because they reinvest profit back into the company and write it off as expenses.
You are not paying any tax because you are not making profit. If you are making profit but not paying tax, you are committing tax evasion. If your expense are genuinely for business purpose such asmileage, home office supplies, electronics as you said, they are all legitimate and fair deductions, they are not loopholes.
@@AnhTran-ty6zx The difference is people who have normal jobs dont get as many options for taking deductions on their taxes. Like an employee who bought a car to get to work and only used it for that purpose cant get any kind of tax deduction. But someone who is self employed can get huge standardized deductions for the cost of a car and its maitenence and mileage costs relative to the amount of time they use it for business. So in the end someone like me who is self employed can get a lot less tax liability at the end of the year with the advantage of having a "business" car that I can use for personal use any time I want. "Individuals who own a business or are self-employed and use their vehicle for business may deduct car expenses on their tax return. If a taxpayer uses the car for both business and personal purposes, the expenses must be split. The deduction is based on the portion of mileage used for business." "Employees who use their car for work can no longer take an employee business expense deduction as part of their miscellaneous itemized deductions reported on Schedule A. Employees can’t deduct this cost even if their employer doesn’t reimburse the employee for using their own car. This is for tax years after December 2017. "
@@rileyxbell you're not supposed to use it for personal use. If you do you're supposed to keep track of the mileage and you are only supposed to deduct the percentage of business use. I work 1099 so I know. I also just deduct 100% because my tax person says to.
@@trance9158 they’ll just change from “lobbyist” to “friends of congress members” to duck the system. What we need are term limits. Companies will have less power over government if they can’t build 20+ year relationships with members of congress
The gov is the problem. They spend over 6 trillion every year and bring in 3.2. Getting all that 180 billion from corporations would raise that to 3.4. The gove would still be spending about 3 trillion they dont have. We dont have a tax problem. The gov has a spending problem. Dont believe the propaganda
What is really lost in this video is the fact that it’s not the companies fault that they are not paying taxes but it’s that the government has written the tax code in such a way that they have done nothing illegal.
And who lobbies the government and pays politicians off via campaign contributions to achieve that desired outcome? The corporations you say are blameless. Our government is bought and paid for.
those corporations also pay your paycheck and mine. When they use that money to expand, they increase jobs and the ability to pay. If you feel otherwise, by all means go live in Europe, get taxed 55% and have very little discretionary income. Its not our fault that's how it works - and I work too (and am likely paying a lot more taxes than you *yeah it was a good year for the startup I am at) - its the way ECONOMICS works. Its not 'trickle down' either.
@@MGPCycling and those lobby groups are LEGAL. A public company is required by law as a duty to their shareholders to maximize profit and thus use lobbying groups. These companies are operating WITHIN the law. Maybe instead of complaining learn from them and start a business yourself. I did with $300 while I was homeless. I know people from all walks of life who have become millionaires. These companies are not stopping you or hurting you. They are operating in their duty to their shareholders to maximize their profits.
My tax dodge is legitimate - In my retirement, I live on an income below the poverty level and I'm having a wonderful time on extended backpacking, bicycle touring, and paddling trips while living in my vehicle in between times. This lifestyle is keeping me happy and healthy at 72 and I'm still adding a little to my savings account every month. My main advantage is VA health care and long term care when I eventually need it.
Right on ! , I have a motorhome and I stay in California. Worked civil engineering for several years and I love this lifestyle. Freedom and minimalistic is a great way to live . Sounds like your doin it right. Happy trails!
This is called "living within your means" and based off your own efforts being paid back to you. People who live off credit live off the effort of others with no intention of paying it back before they die. This is the inherent flaw with the system in that there is no mechanism to reward people like you who keep the system afloat by propping up the irresponsible ones that threaten to make it implode.
34:05 "There are individual retirement accounts, some of which are not subject to federal taxes." -- I am pretty sure this is not true. An IRA is tax deferred. As its value goes up, so does the level of tax when the money is eventually taken out. A Roth IRA is taxed before you invest the money.
Eliminate income tax and replace with a sales tax. The governments spending would be tied to the economy meaning if we are doing well the government is doing well. The cumbersome process of every citizen and corporation filing their income tax would be eliminated which means more freedom for the people and a reduction in the size of government. The IRS could be reformed from a government organization that monitors the citizens to a citizen organization that monitors the government. Environmentally this would tax people/corporations on how much they consume rather than how how much they produce.
Maybe sales tax should be incremental depending on the scarcity of goods...like higher sales tax for luxury goods. The rich can afford to pay premium price for the LV tote while placing lower sales tax on essential items like diapers, milk so as to not penalize the rest of the population.
While I understand your justification and aligning government outcomes to output, the sales tax is a regressive tax - not a fair tax. It has more impact on low income earners than high income because expenses represent a higher percentage of total income.
@@jessem4659 I can make the exact same argument about the cost and time of filing an income tax return. It impacts low income earners more than high income earners. In fact the entire income tax system impacts low income earners more than others. Income tax is intentionally designed to tax the poor and middle class while having the appearance of taxing the rich. Rich people usually own businesses and capital assets which means that they don't have a job that provides income that can be taxed. Their wealth is based upon the value of the shares of the business they own or other assets. That wealth is not taxable until it is realized which means that they must sell their shares or property to incur a capital gain. A sales tax ensures people who live a millionaire lifestyle pay tax based upon their consumption.
I do a lot of work with taxes, and it isn't true for all tax laws, but many were set up to encourage people to act in certain ways and incentivises them to do so by using tax breaks. I have made a couple video's on the subject.
What really concerns me the most about taxes - is how the government mismanages the money I give them and how bad and ineffective government programs are. I would much rather have amazon or Google keep its money until the government starts spending more wisely and cut down half of it's useless programs.
Have you ever seen how badly a corporation can mismanage money? Give me a break, in some cases corporate dysfunction eclipses government so bad because they have limited transparency and accountability.
This is such a more nuanced discussion than “evil companies don’t pay taxes”. It’s a trade off. If the government allows them to write of expenses then they are incentivized to reinvest profits into the business, allowing the company to grow in both size and headcount. Thinking of Amazon, it’s not just Amazon employees, but think of all the tangential businesses that are positively impacted by their growth.
Amazon should have failed and been replaced by a smarter business that didn’t need to fail for so long until inertia took them to the top. Also, think of all the tangential businesses that have been harmed by Amazon. I don’t get your argument that corporations would not be investing in themselves if they were taxed. They would be pretty bad businesses then and maybe should fail instead of being propped up by not paying taxes.
I had a corporate landlord in 2015. It was my worst landlord ever. They never wanted to fixed anything, had rude staff and they unethically charged for damaged that didnt exist. The property lived in was purchased as a package for roughly $65k and was updated to rent out for $1100 a month, it is currently being rented out for $2k
The government is basically telling you to find a way to get rich because all that means is that you’ll probably creating jobs and aiding economic growth but that’s a large task at hand but these days it seems like there’s a wealth boom with how trendy it is to be an entrepreneur
Start with Companies with employees on food stamps due to low wages- they should repay the government for that cost. government is subsidizing what companies like Walmart should directly pay for
Retired 20 years ago at 45. Have funded this by selling the home I live in after remodeling, buying another. I've done that 3 times, working on #4 now. First $250k cap gain is excluded from income tax. This has made my reportable income under the requirement to even file. It also triggers Medicaid, free smartphone and now free internet at home. I just turned 65 and now Medicare Part B is paid for and I get $0 copay, $0 deductible. That's great insurance even if I had to pay. It's just easier. When I go to the doctor I don't have to try and figure out deductible and make choices based on that.
From my understanding of the difference between "Book Income" and "taxable income," the government actually generally ends up viewing your income as much HIGHER than they let you declare for investor reporting purposes. For example, if the NYT receives 100 dollars for a year-long subscription, that revenue is deferred until the subscription is delivered over the course of the year for BOOK purposes, but for TAX purposes, the government taxes you on the 100 dollars immediately.
So according to Sheneya Willson average workers don’t contribute to the economy 🧐😂😒 Wow, this kind of disconnect is destroying our humanity and our world.
It seems to me that in order for offshoring to stop you must make it more expensive to do that than to keep your company in the USA. Tax rates should mimic those of those sheltering countries. That would make it more expensive to set up and conduct those multiple shell companies rather than just pay taxes straight to the US Treasury.
That's just the problem - tax havens have such low tax rates, they undermine the point of taxation. Mimicking them would defeat the whole purpose. The only reason charging such low tax rates makes sense for tax havens is that their populations and economies are small enough that the benefit from attracting offshore-seeking companies massively outweighs reduced income from charging companies such low rates. That is not a strategy a country like the US can mimic effectively.
This is the kind of world we've made for ourselves and our children, better have no enemies when the light goes out, due to the economic criss, wars and rate of unemployment I think now is the best time to invest and make more money for the future.
Good to see how you are busy came up here to show keen appreciation to Mr Donaldson this is how I got a recommendation him At first i was a bit scared.
Also we need to get rid of citizen based taxation for regular citizens. It’s not fair for US citizens abroad to still be tied to the IRS it’s like you cannot escape the US unless you give up citizenship. Tax the corporations leave regular folk alone.
I don't believe in the philosophy of 'the more you make, the more you pay' and call that fair. Instead how about you charge everyone the same percentage of income tax. No loopholes. So hypothetically if the tax rate for everyone was 20%. Someone earning 100,000 would pay 20,000 in taxes. And someone earning 10,000,000 would pay 2,000,000. The richer are still paying more in terms of numbers, why do you want them to pay more in percentage. How do they benefit more from that?
I’m amazed how dumb the American systems such as: the electoral college system, the tax code, the penal system, Gerry mandating and on and on are. They have such a hard working one changing anything for the good of the citizens
I have trouble seeing how tax avoidance to mega rich on housing doesn't crowd out middle class and poor while limiting city services to help regular people. Like housing mass transit and healthcare svces.
Tax news reporting is always an easy way of making people angry, generally who don’t understand how corporate tax works. Companies who spent years making a loss can offset future profits against those losses. Companies like Amazon spent decades making a loss. Also, capital gains are taxed at lower rate to income to encourage investment and growth as well as well as self sufficiency for people’s retirement. Take away the advantage and people will build their companies and investments somewhere else. Expenditure on R&D and on green new technologies are incentivised by the government to keep their countries at the cutting edge of technology and to encourage environmentally sustainable investments. You can remove all those incentives but then the US (or any other country) will not stay competitive and will not meet their environmental targets. Remember it’s not the government that offsets carbon, but the companies and residences under the remit of the government that do. Encouraging certain behaviour by offering tax breaks, then slamming companies for taking them is a dumb game. If you take all the incentives away, companies will shift their research and manufacturing to the place where it makes the most economic sense. A typical “you can’t have your cake and eat it problem”. Problem is that the reality is far more complex and nuanced than the lay person would like to think it is.
Excellent explanation. To me, as long as 8 billion people have enough food to survive , me or Creator don't have issues with this system. As far as happiness is concerned , it's not the money that makes me happy , it's knowing the truth and the truth is Jesus Christ ( in my case ) . I am thankful to stay alive for 44 years ( so far ) and enjoying this blue planet everyday and I'll have no regrets if I am called in to be with my Master.
Im sorry but who makes the laws in this country? Enough said.And for companies taking a loss doesnt make them any different than rest of us. You start a business and fail with losses its your own damn fault. Those companies are making huge profits and still aint paying.
@@nofear2792 That's why I don't support most of the companies by not becoming their customer. I live frugal life, drink only water and avoid flavored fluids . Cook myself instead of eating outside. Overall I am not really a good citizen to boost the economy. Yet I am quite happy than most of the people I know who are so good in boosting the economy burning their wallets.
@@nofear2792 Its very common and pretty normal for a business to lose money for a long period when it first starts. You can and should always be able to uses the loses against tax years where you do make a profit. You are wanting people to pay tax when they haven't made a profit. Why would anyone start a business if they could not do this? doesn't make sense.
Future tax benefits from loosing money is a good thing? What kind of capitalist are you? Their reward for losing money is not paying any tax and incentive to improve their business if you believe in market capitalism. This is another weird reasoning to justify corporate welfare. Corporations just want to play both sides and this nonsensical argument is a prime example. If you truly believe in capitalism, then this whole idea of tax losses is offensive and allows inefficient and poor businesses to survive. Which is it?
You cannot be mad at the companies. They are doing what they are obligated to do for their shareholders and maximize profits. (It’s a legal obligation) they are operating WITHIN the law. If you want to be mad be mad at the government but the companies are within their rights and more than that they are legal obligated to maximize profits as long as it’s legal. You cannot be mad at them for following the law and maximizing their profits which again if it’s a publicly traded company they have a duty to their shareholders to maximize those profits. AND GUESS WHAT! You too can start a business. I started one with 300 to my name and was homeless. I know people from all walks of life who become successful. Stop finding reasons to complain and figure out how you can learn from these companies and doing something similar yourself.
Those same companies (indirectly) make all the tax laws, so WE can't do anything about it.. We do not have that much power... So that IS the companies faults...
@26:50 California stated that there was a surplus, but it was only because they weren't counting the unfunded liabilities that were and are still owed. California is as guilty as any entity when it comes to cooking the books to come out ahead.
As a tax preparer I always laugh when people complain about taxes. A single person making 50k will pay about 8.416% in federal income taxes. Meanwhile a married couple making 100k with 3 kids will pay 2.481% (and if Biden has it his way this will be zero with proposed child tax credits for 2022). In fact you will not see a family with 3 kids pay the same amount in taxes until household income reaches 150,700. Let’s not get into the debacle that is the EITC (where the government pays the taxpayer) which costs us $70B a year. The wealthy will always pay taxes because of AMT. This rate is 26% and automatically starts getting calculated for eligibility once a taxpayer crosses the threshold of 200k (meaning amounts above this will get taxed at 26% including item normally excluded, no exceptions). And corporations are taxed differently because they are not Cash-based entities. They are accrual-based entities. And the government loves to let them take deductions or credits for EVERYTHING (including taxes paid to other countries…this is a dollar for dollar credit).
@@AvatarSimulator Nope. $50,000 less the standard deduction for 2022 ($12,950) is $37,050 in TAXABLE income. The first $10,275 is taxed at 10% for $1,028 (always round up). The remaining $26,775 is taxed at 12% for $3,213. $1,028 + $3,213 is $4,241 or ~8.482% (slightly higher number because of rounding.) Also I clearly said FEDERAL INCOME TAXES. Can't include states because that's not an apples to apples comparison...unless I'm doing a comparison of two people in the same state...which is also why I did standard deduction. Removes that variable from the mix. And if you are making less than 53k this year...your highest bracket is 12% (unless you are a dependent of someone else then you don't get the standard deduction). If you are paying MORE, you either need to fire who does your taxes...or your an idiot and deserve to give the Federal government more than it is due since you can't manage your own money or, what should be, a very simple tax return. EXCEPTION! You are self employed. If you are self employed the above numbers do not apply to you because you have to pay 12.7% in FICA taxes, which is reflected on your 1040 (although there was an tax break on this in the last few years due to the Trump tax cuts, this will expire in a couple of years though, much everything else in that plan unless the Democrats renew it in the next year when they start to expire).
@@AvatarSimulator And that's why I'm only dealing with federal income taxes. We pay a crap load in taxes. We have sales taxes, gas taxes, utility taxes, real estate taxes, tolls (form of tax). The average American probably sees at least 25% of their money going towards some form of tax (even if you rent a portion of that rent is paying someone's R.E. bill). Some areas of New York have THREE different state level income taxes. And hey...you only getting $18 is a good thing that means 1) you aren't underpaying and getting penalized for it and 2) you aren't giving the government an interest free loan. Just remember that your employer is paying that other 6.2% and 1.45% for FICA...although...the difference is...they get a tax deduction for it. I'm of the opinion either they can't deduct that tax for the purposes of their federal income tax...or we should get to. Especially since Social Security is a form of forced 401(k) contribution and we get a tax deduction for regular contributions to a 401(k).
They need to get rid of the tax loophole that allows a person to come into the country for 7 years working income and not pay taxes on their business. All they end up doing is when it comes close to the end of the 7th year. They sell the business to a family member or friend and then that person doesn't have to pay taxes on the business for 7 more years. They've been doing that for several decades. AND NO ONE SEEMS TO BRING THAT SCAM UP.
What I came here 3 years ago Been paying taxes since I started working Probably depends on visa ig Definitely not a scheme for indians too. US loves Indians for it's taxes
The purpose of tax is to provide services for all people. Fun fact, business taxes are a tax on people who buy the goods. i.e. us normal people. INCOME TAX is a tax on individuals, and in principal, only the people who can afford to pay tax, and at a higher rate for wealthier people. It would be better to have ONLY income taxes, so the poorest don't pay taxes (just buiying things to live) and the rich pay a higher rate.
The wealthier also have more expenses than the poor. Wealthy people don't get cuts for education expenses for their kids reaching 80k a year. Not to mention living in a city like NYC where 1 bedrooms go for 5k. I cant fathom the rich paying a higher rate. It should be equal.
Corporations do not pay any taxes, anywhere.; their customers do. Corporate taxes are are a cost of doing business. Taxes, like other expenses, are reflected in the cost of their services or products. High corporate taxes are why products/ services are so expensive in Europe.
When the United States government can't find 6 billion dollars to fund a southern border wall, but a few years later can scrounge together 40 billion for foreign aid in a war we shouldn't be involved in it should be an absolute encouragement to all Americans to pay as little tax or none if possible. When people are having their paychecks taxed heavily it's still driving on main roads littered with potholes people should pay as little or no tax as it clearly not being spent to address the real issues.
Then wait to try and get government assistance. While it is correct that we all make A LOT of money. It's next to nothing by the time taxes get through with us. The government looks at our paychecks BEFORE they remove tax. If I'm gonna be screwed over and not given any assistance, at least have the money go to something useful, like roads or a better education system for our schools.
No... People moving out of California are not the poor. The poor in California has to stay in California to get their best medicaid and low income incentives. Its the middle class white collared workers leaving California because they can get cheaper nicer homes with better schools elsewhere while working remote/hybrid. California is increasingly the state of the extreme rich and extreme poor. But the middle is what paid their fair share of taxes to fund the low class welfare. So with the middle disappearing from Cali, it will increasingly become a poorly funded state with a huge gap in income.
I remember my childhood friend telling me some story about how she was really distracted and wanted to leave her classroom before she was diagnosed her Teacher took a chair and threw it across the room to stop her wound up nature. I almost couldn't believe it. It is the self regulation that I empathize with the most, it is not easy for sure. I am the opposite of ADHD pretty much, studied the brain to understand things and I seriously think we need to give these kids a break and stop expecting them to change so fast.
Hello thanks for introducing her to us i actually did the trade with a loan from my friend and now with the profits i payed up and now am happy and comfortable
I agree with some of the points but they pick bad examples. Amazon lost money for close to a decade before they started making profits, that's the central reason their tax rate is low. Also, most of those profits are passed onto consumers with more innovation and lower expenses while it would just disappear into the endless black holes of government spending should taxes be raised. Wealth inequality is a problem but this is not about people its about actual businesses. Amazon is not gonna buy a brand new Ferrari, its going to invest that money into some extremely fast delivery drone, which is better than the inexplainable disappearences of money by the government.
I work for a small company that has 3 employees excluding the boss. He definitely participates in tax evasion not just tax avoidance. But the amount of crap you can write off or claim as a loss is utterly ridiculous. It’s not just big business abusing the rules, it goes all the way to the bottom. His excuse is that if big business can do it then so should I, which to be fair I agree with but nobody should be able to do it to begin with.
Thanks for the video. The content is great like always but I wish that when your guests have poor audio, you could add subtitles for better understanding of their words.
The purpose of taxes is to redistribute wealth back to the country's infrastructure and citizens in need, by everyone paying an equal amount of what they earned percentage wise. The rich also use roads, waste sanitation, water, energy and other subsidies that are funded by government taxes.
The repeated sentiment " oh they are just paying taxes according to the law" WHO DO YOU THINK CREATED/MODIFIED THESE LAWS IN THE FIRST PLACE!?! LOBBYIST ... who paid these lobbiest CORPORATIONS STOP THE LIES AND STOP DEFENDING THE MACHINE THAT MAKES YOU ALL SHEEP!
When you tax corporations, corporations have less profit therefore move offshore to manufacture. When you tax production you get less production but when you tax real property there are still the same number of acres in the same number of square miles in this country you haven't lost anything
This is a lie. Corporations do not pay taxes. Consumers do. Every dollar paid by corporations will be passed down to the consumer through higher prices. Corporations do not have a problem making profits even when the tax rate increases because they just raise rates on the consumer. If you want to keep jobs in America, increase taxes on corporations who mov jobs overseas. Jobs will start staying here In The states then
@@mattarchibald4912 in other words tax imports increase import tariffs but when you decrease corporation taxes capital gains taxes and payroll taxes then you decrease tax on production but you can protect against inflation by taxing assets
If you tilt to tax mostly-to-only 'acres' then production will be narrowed to fewest acres, and most acres don't produce nearly enough to support US bloat. This DID work in an agrarian distant past, but not now.
As a European who travelled to America earlier this year I was shocked at how backward the place looked compared to home. And the people were mostly obese and ignorant.
Actually you can get these things as a small business owner abs you don’t have to be “rich”. You can be an investor without being rich. You can be a homeowner without being rich. People are claiming to be destitute tho while buying an Xbox or protesting their pay while wearing Jordan’s grills, and chains tho…
This video clearly has bias. First, if you increase taxes on corporations they pass it along to the consumer by increasing their price of their goods or services. Secondly, while taxes may not be the reason people leave a state they are certainly a consideration. One needs only to look at CA. We are people leaving in the numbers they are…. Not for family reunion. It is primarily cost of living, crime, homeless, deteriorating city environments and taxes. Also, the suggestion that CA, as an example, is not losing population is questionable- why did these lose a congressional seat? I also seem to recall that the rich 10% pay something close to 80% of Federal taxes. If I’m approximately correct then what percentage should they pay? I did note there was little to no mention of this in the video. Finally, those states who had surpluses only got there via a federal government handout. CA, again as an example, has north of $1.5 Trillion ( yes with a T) in unfunded pension and health liabilities- they are effectively broke. The simple fix is a flat tax. No deductions and everyone has skin in the game.
Imagine if all the Americans act like Corporations. The US will collapse because where infrastructures, military, medical, and more! No, Corporations have to pay too. They know Americans are stupid and Governments have enough of Corporations’ behavior. Hell, Mcdonald's will never survive without the middle class if we follow Corporations’ behavior on tax then all the corporations will collapse. So they owed thanks to us instead they ditched us.
There is one big tax avoidance path that only rich people can do. 1) Receive little or no income from the company/investments that you own but rather have that go to your assets/company/investments. 2) Take a loan out against your company/investments/assets to provide you with tax free income. 3) When you die have your estate use your company/investments/assets to pay off the loans (not income at that point since you are dead). 4) Repeat the process with the next generation. This seems like a really easy loop-hole to close. Why haven't we?
Option 2 is shoving the burden of financial risk onto the banks....most.smaller.banks might not be able to sustain such a business model in the long run...during a downturn and stagflation......and thus depending on their value to the federal govt POV....federal bailout....again.
@@myownlilbubble These aren't options, it is a 4-step process. For Step 2, anyone executing this strategy will already have a deep relationship with the bank they will use and has lots of capital to secure the loan with. Remember, this is not an investment loan. It is just a strategy to provide income. The loan will not be paid back from the return since there will be none. It is likely secured against the asset that will be used to pay it back.
one easy way to fix this would be to put a progressive tax credit system, similar to how every American gets taxed on there income. Basically allow business to deduct all R&D and expenses like the current system allows, up to $10mm. This will incurring small business to grow and people to start new businesses. Once a business hits a $10mm for expenses and R&D then they cannot write off all the expenses to reduce there tax book income. They can only right off 80% of expenses from $10mm-$30mm, the next bracket say $30mm-$50mm you can only right off 60% of expenses and R&D. Next bracket $50mm-$70mm you can wright off 40%. then the last bracket $70mm -$100mm you can right off 20%. Any expenses that exceed 100mm cannot be written off against income. This would help bridge some of the gap between Book income and tax income and create more tax revenue for the government. Say a company makes $400mm income and has $200mm in Expenses and R&D Current system: The company could take all $200mm in expenses and R&D and wright it off against income to reduce there tax basis. So instead of paying tax on $400mm at say the corporate tax rate of 21%. They would owe 84mm in taxes but since they can reduce there taxable income by there Expense and R&D, the company would only pay taxes on $200mm or $42mm in taxes would need to be paid. Total Income $400mm Total Expense $200mm Total Taxable income $200mm Total Tax owed at 21% $42mm New system: In a progressive tax credit system it would allow corporations who make substantially more income to pay their fair share of taxes and not have as large of a brake between book income and tax income. $0-$10mm 100% $10mm $10mm-$30mm 80% $16mm $30mm-$50mm 60% $12mm $50mm-$70mm 40% $12mm $70mm-$100mm 20% $6mm Greater then $100mm 0% $100mm Total Expenses that can be reduced $156mm Total Income $400mm Total Expenses per above $156mm Total taxable income $244mm Total tax owed at 21% $51.24mm The difference between both is pretty small $9.24mm more in taxes but the big effect will be seen when a company it making billions of dollar and has billions in expenses like Amazon. If the American people are taxed like this why shouldn't our companies also pay like we do.
A company “moves their headquarters” to another country and buy a P.O. Box or a 1 room office and call that their headquarters. Now the main branch where the ceo the sits around and drinks a coffee at his desk is apparently not the headquarters but the “main extension” not sure if this is how it works, but I think it does.
…trying to raise emotions about companies avoiding paying billions to a government that wastes TRILLIONS annually. (The US gov doesn’t have a tax income problem, it has a tax spending problem.)
It's tough to try and increase taxes on realized dividends & capital gains because there are intentional incentives to compensate for the risk involved with investing. W2 income is close to guaranteed income - you work 40 hours and typically receive a check the following week (hourly employees, paid weekly). - Yes, you can lose your job; but most people receive pay for the work they've completed. You can invest what you think are stable blue-chips and if they fail, there goes your investment. - Yes, you can "write-off" some of your annual losers up to a certain $ amount. But, that only helps you recoup a % (equal to your taxable rate, up to a certain amount) and the rest is lost. Also, the idea of no taxes on stock gains until you sell being a problem, is just wrong. - Look at few stocks on a daily chart and see how they go up & down. How would you even try to fairly tax that? - That's why they solved the problem and tax it when the gains are "realized". Until you turn that share into $$$, you only have a number on a screen. Bonds, they've got wrong (in general). Typical bonds, you pay ordinary income tax on the interest. - US bonds, you typically only pay Federal tax. Municipal bonds can avoid both. - If you are buying & selling bonds, the gain you get is capital gains similar to a stock. But, that's because you're trading them.... Loans on assets are great - but less great as borrowing rates increase.
Wouldn't the accelerated depreciation then have you showing a LARGER profit in every year other than the first year??? Seems like you just defer the taxes. Still have to pay eventually
For the record. Current tax system was favored and signed by President Trump. Some of his friends are the CEOs and Presidents of the companies who use these laws to skirt the rules. They also make donations to members of congress. And Congress writes the law.
I hope everyone that takes the time to watch CNBC videos is smart enough to realize that all these great ideas to "raise corporate income taxes" comes out of our pockets.
Tax avoidance is Patriotic. Tax Evasion is a felony. Failing to file is a misdemeanor but leaves The Statute of Limitations for Evasion open. Knowing The difference between Avoidance & Evasion is key & The issue. Inflation is a hidden tax. 🐥🚿🚭
I ask you to think about this "Companies do not pay taxes, Companies collect taxes" Do you think for one second that the tax load is not included in their expenses and driven into what they charge for their products?
Right, I have a hard time understanding why corporations should pay taxes at all. Seems like a cheap trick by the government to pretend that somebody else is paying the taxes so it is all free money to buy votes. If the companies can't make a profit they will go out of business. If they pay dividends to the stockholders, that is income for humans and they can pay taxes on that.
A flat rate sales tax would be the absolute simplest solution. Everybody would all be paying the exact same amount whenever they purchased an item. You would only be taxed that one time. The entire tax code could probably fit on a single piece of paper.
The sales tax would have to be gigantic to make up for the loss of income tax. It would also hurt poorer individuals since those taxes will represent a greater proportion of their income compared to a wealthy person.
55% of Americans don’t pay taxes because they are “poor,”… the same group of people asking the successful, hard-working rich to pay more taxes. If you punish success more, corporations will move out of the US, and we will end up more people not paying taxes because they are poor results of losing their jobs.
You're completely ignorant. Didn't have that problem before Reagan gave corporations a huge tax break. It didn't effect jobs negatively during the 40s and 50s when the rich and corporations paid an very high tax rate. Educate yourself.
Not all rich are hard working. When you’re born into the Walton family you don’t even need to work to be rich. Corporations (not cooperations) will never leave because of the massive market the US offers. They may setup some offices offshore to avoid taxes, but will never stop selling in US. Asking the rich to pay the same tax rate the middle class does isn’t punishing them. Buffet’s tax rate is lower than average Americans. He himself said it’s not fair. Where did you get the 55%? Sources?
@@hunnybadger442 I don’t know, the world is very different today. Countries compete much more directly with each other today. It’s much easier to move today than it was 50 years ago.
More tax = more equality. If we tax all the people making >100K or more, there will be no inequality, racial injustice, systemic racism, non-binary/polygender discrimination. US had a thriving economy when US tax rate was 90% in the 1960s.
Low income you got state and federal assistance
High income you got state and federal loopholes
Middle class pays the highest per dollar earned in America with the least state or federal benefits
what i want to know is when more federal taxes are paid how does that benefit the poor and middle class? sounds like it only benefits the government to me. maybe we should think about decreasing taxes on everyone then instead of raising taxes on a few
@@craigclermond8001 bingo
The top 1% of earners in the US pay 40% of the personnel income tax in the US
The top 1% also own about 35% of the country's wealth
Yes
Misleading title, I was gonna watch this as i am an american and want to avoid paying taxes but this is about corporations and ultra wealthy individuals. I want to know how to avoid taxes as a common person.
Same!
Repeal the unconstitutional 16th amendment
You are kidding, right? Only the little people pay taxes.
Open a business. Then you can write off expenses for the business. Thus, reducing net income and tax. Invest your money in stocks. Then use it as collateral for a loan. Rmb debt does not get taxed. Then when you sell your stocks to pay back the loans you only pay 50% capital gain tax. However, all of these option involved risks. The rich can do this on a regular basis because they can bear the risk. People should have a basic financial education before they complain about taxes.
@@NowAndToEternity how would people know if their education is sufficient and meets your standards before making a complaint?
The opening remark by Biden is priceless. He speaks as if he wasn't a member of Congress for the last 500 years. If he had a problem with the tax code, he should have done something about it.
biden uses it. he is just playing to the plebs....no more career politicians and NO pay for politicinas. should be a VOLUNTEER JOB
Biden does n;t know anything except obama's puppet strings operating his filthy mouth
Umm, where have you been for the last 14 years? Yes he was in Congress for the 2001 tax cut, which wasn't the big benefactor for business. That tax cut happened in 2017 and was a Republican push. When is it Biden left Congress brainiac?? 2009??? You know he was VP from 2009 - 2016. Then he was out of office for 4 years, being a private citizen. Then he was elected pres. So, whatever CONGRESS has done over the last 13 years, he had nothing to do with, and for most that time, Republicans controlled Congress. So, REPUBLICANS controlled what went in front of Congress to vote on. Republicans also controlled Congress in 2001 for that large tax cut. They were also in charge of Congress in the late 90s when they lowered capital gains tax to the criminal level it is now, or has fluctuated around. Clinton went along with it because Republicans threw him a bone with some program or another he wanted. So, ALL the tax cuts over the last 25 years were Republican efforts that THEY put to the floor and passed. For two of those, they also controlled the Exec, in 2001 and 2017.
BRAINLESS.
Hey let me know when the Constitution changes and the minority in Congress gets to decide what bills go in front of Congress.
@@johndoh5182 Nice rant John. The corporate tax rates have been low for decades. If you need to make excuses for the POS Biden, then go right ahead. Dems don't do anything when they have control and the excuse is that they don't always have control. Managed to shove through the ACA - Just managed to spend $6 trillion! Speaking of brainless, John.
Not to mention he was the senator of the state that’s essentially America’s biggest tax haven (Delaware). There is a reason like all major companies are registered as Delaware companies. If he was really serious about stopping these tax breaks, he would have fought to change Delaware’s loopholes years ago.
We need a report about all of the tax money our federal government wastes.
lol its easy 800billion on the military a year! wasting 500billion thats not needed, but as long as the government keeps growing the military they get to charge the Americans more each year
I think Rand Paul makes one every year
How about a report of how taxes pay for all the benefits you receive? Roads, emergency response, etc etc. I’ll support your report if you support mine because I think you’ll find that a lot of what you pay in taxes is used by you and you are just completely ignorant of that. Let’s compare that to how much corporations waste on exec perks, golden parachutes, ill fated initiatives that workers know will fail. I’m guessing that most corporations will not show up so we’ll.
@@FitzyD5 If you got an actual look at government spending you would find that they are raping us! and every year they keep spending more and more to force us in to debt.
They already destroyed this country and gave us away to china! America is on its way down while china is pushing up and we have joe biden gettng rich while he sells out the country.
Funny how cnbc are hypocrites the media doesnt ever pay there fair share of taxes lmfaooo yet they repeat the same thing to make money like they care anyways
As a government auditor and economist don’t let this 8 billion dollars distract you from the fact the US government is spending TRILLIONS of dollars over budget. No amount of money/ tax increase will satisfy the horrific inefficient government spending. This is a distraction from the current financial crisis of the US.
You are 1000% correct. American government does not have a tax problem. It has a spending problem.
@@hazy626 How the hell do they waste so much money?? I guarantee most of it goes right back to the rich people.
The government creates "government programs" that produce no product. Just gave $40 billion to Ukraine. That about $110 for every person in the US population.
@@nathanjarboe4927 and you’d be 100% INCORRECT.
@@nathanjarboe4927 Yes, it does. Why are individuals taxed at a rate of 30+%,. but Amazon (which pretty much abuses the majority of its workers) pays 5% tax???? This is just barbaric
I personally put my money mostly in the stock market, since its appreciation is not taxable, and then when I sell, I find ways to make the income non-deductible in taxes. I 'm currently sitting on more than $327k of cash, and I'm throwing it in the market. Just thinking of how to not lose it all, since the market is red.
By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money, and and handle taxes. I know someone who made over $350k in this recession influenced market, but to the best of my knowledge, it was through a financial advisor.
Lack of information can be a big hurdle. I've been making more than $21k passively by just investing through an advisor, and I don't have to do much work, and the money is not taxable. Inflation or no inflation, my finances remain secure.
@@cloudyblaze7916 Wow. I think I might want to do this. Could you recommend who your financial advisor is, please? I could use some help. Thank you.
I really don't like making such recommendations, because everybody's situation is unique. But I have been working with Sharon Louise Count for about four years now, and she's really, really good. I think she's got a contact website or something.
@@cloudyblaze7916 Thank you so much for this. I just looked her up now and I sent an email. I hope she gets back to me soon.
Your business will make you rich but investment makes and you keep you wealthy, we all deserve to be successful and have financial freedom, I pray everyone here becomes successful
Assets that can make you rich
Bitcoin
Stocks
Real estate
@@royalhighness8383 You're right, it's obvious a lot of people remain poor due to ignorance
I'm looking for something to venture into on a short term basis, I have about $6k sitting in my savings
@@peterfaulkner8391 Learn and trade under a guide I do same and I hardly make losses in the market
Starting early is the best way to getting ahead of build wealth, investing remains the priority
Here’s a thought. Instead of vilifying corporations for following the ridiculously complex tax code as well as they can, why not put the blame where it belongs - the US congress and the White House who makes and enforces these laws.
u wanna do put their names down
David, I truly agree with your comment, what is the reason for all these complex taxes any how?
It all should be deleted toss out. My thoughts also.
I think it’s clear. The government outsourced their job to corporations. Now both are costing the people and like a lot of people neither will take responsibility only blame eachother.
If you go back and read the records from the debates about the 16th Amendment, most of the problems with income taxes were described in advance. You should pay taxes for what you damage and consume, not for what you produce.
Cue the fools who have no idea how consumption taxes can be designed along with the cheats who like the existing system.
It starts with getting corporate money out of the government
"Don't hate the players, change the game."
This is totally the fault of Democratic and Republican politicians.
what i want to know is when more federal taxes are paid how does that benefit the poor and middle class? sounds like it only benefits the government to me
@@craigclermond8001 - The government gives it to the larger banks who are The permanent private shareholders of The Federal Reserve Bank. They, in turn, receive requests from The government owned Centeral Banks and print or electronically invent fiat currency (dollars) & receive these fiat loans at 7% comounding interest Per annum repayable by taxpayers. This is not possible in this dimension. But as lingu as humans believe in The full faith and credit of The US government the bizzare system will continue. I like historically proven fallbacks that are are, non-reproduceable, proven, attractive or usefull, indestructable & divisable non- government backed things of value, like negative interest US Savings Bonds or Mob Loans.
@@goldcicvibefel7628 I'm, not an economist miss. I have no clue what you just said. I ask a straightforward question so if I could receive a simplified straightforward answer id be grateful.
I'd like to think it's the banksters and the lawyers more then just blaming politicians. Politicians are used to keep the spotlight away from the real and systemic problems.
@@youretheai7586 - Politicians with no legal understanding of Constitutional Law basics or who make up their own laws can destroy a nation and not even see they have done so.
"The Golden Rule: Whoever has the Gold makes the Rules."
If we are being honest with ourselves, taxes may be a major pain, just like they are for the wealthy. Taxes on income, goods and services, real estate, etc. It's wonderful to pay taxes, but we may also establish our own tax havens. Since stock market appreciation is not taxed, I personally invest most of my money there. When I sell, though, I discover ways to make the profit tax-deductible. I presently have about $327k in cash, and I will surely put it on the market. Considering how to avoid losing everything given that the market is in the red.
@Patricia Martin I've been doing this same thing myself. Can't get into trouble with the IRS when I have no income and all my money is in stocks. I don't like doing the work though. Lol. So I just invest through an advisor who does the stock picking. My money grows, and I'm tax-free.
@@ConradGosling I've been thinking of going this route of using an advisor. Could you recommend yours? And also, how do you prevent capital gain tax?
@@KingDavid-jj7tk Do you know who Stacie Kristal Weber is? She frequently appears on CNBC. I keep my investments in tax-deferred accounts. I can evade capital gains taxes in this method. Your advisor could brief you on further possibilities.
@@ConradGosling Thank you for this amazing tip. I just looked the name up, wrote her and scheduled a call
But how are you able to put money into stocks without getting a salary? That's the difference between the "average" person vs the rich. If you are paid in cash from your job, you'll be paying the tax no matter what. But the rich can have ways to be paid that are not via cash. They can be paid directly as stock for example.
Bailouts for corporations that report record profits and pay little to no taxes are some how acceptable…
bailouts for poor people that lost their jobs are seen as “hand outs”… “free loaders” and vilified.
The poor don't have lobbying budgets. They're only remembered during voting time
People send expense gifts to their favorite celebrities and won't give .50 cents to a homeless person. Humans are grotesquely illogical!
What’s worse is that the poor have been convinced to support the corporations by standing up for the via out-dated tropes, false narratives about what they really are and not recognizing that capitalisms no longer exists because no corporation really wants a free market.
yes because poor people don't produce anything. So for the rest of us it doesn't matter if the poor person gets to eat or not but it DOES matter if mcdonalds exists or not
Bailouts for corporations that report record profits and pay little to jo taxes does not exist
"Tax codes are written by millionaires and funded by billionaires..." Not surprised ordinary folks loose out.
Do you work for a poor person?
@@hectoralejandro9883
No, I don’t work for a poor person. Why is that relevant?
@@dcDOC19 because rich do you a favor they hire you so do them a favor in return just work harder to keep them happy
@@dcDOC19 increase taxes on the rich and your employer will cut your wages/benefits as customers are charged more for service. This moronic strategy of increasing taxes on the most productive in society has been tried a thousand times, it seems only the poor don’t invest in books to read the history of what happens when you do this which is why the government only pretends to want to do it and the rich pretend to be afraid 😂
@@andreycham4797
I totally agree with the wealthy providing jobs but the wealthy not paying their “fair share” has nothing to with me. Especially when they could afford to pay it.
That’s like saying having locks on your home cost thieves millions each year.
Best comment
Took me a while to get that one but it makes sense. They are gonna take it anyway. Thanks for getting those gerbils in my mind running.
What's like saying that? I don't get it
Being self employed for 5 years the difference in tax breaks you can get is huge compared to someone working a normal job. I barely paid any taxes for 5 years to expenses and other loopholes and tax credits
Did you figure it out all by yourself or did you hire a tax person? I’m looking into starting my own business in a year or 2 once I finish my schooling.
@@johnmoore1495 Yeah did it by myself with turbotax. With that software it's pretty easy to do. Updates the amount of tax you owe as you go. Some of the biggest deductions I had were business startup and organizational costs, vehicles expenses for business (mileage etc), home office deduction (standard deduction based on office square footage), office supplies expenses, other miscellaneous expenses like electronics. Theres a lot more ways to get deductions or credits but it's good to know ahead of time what will get you the most. How most business pay little on taxes is because they reinvest profit back into the company and write it off as expenses.
You are not paying any tax because you are not making profit. If you are making profit but not paying tax, you are committing tax evasion.
If your expense are genuinely for business purpose such asmileage, home office supplies, electronics as you said, they are all legitimate and fair deductions, they are not loopholes.
@@AnhTran-ty6zx The difference is people who have normal jobs dont get as many options for taking deductions on their taxes. Like an employee who bought a car to get to work and only used it for that purpose cant get any kind of tax deduction. But someone who is self employed can get huge standardized deductions for the cost of a car and its maitenence and mileage costs relative to the amount of time they use it for business. So in the end someone like me who is self employed can get a lot less tax liability at the end of the year with the advantage of having a "business" car that I can use for personal use any time I want.
"Individuals who own a business or are self-employed and use their vehicle for business may deduct car expenses on their tax return. If a taxpayer uses the car for both business and personal purposes, the expenses must be split. The deduction is based on the portion of mileage used for business."
"Employees who use their car for work can no longer take an employee business expense deduction as part of their miscellaneous itemized deductions reported on Schedule A. Employees can’t deduct this cost even if their employer doesn’t reimburse the employee for using their own car. This is for tax years after December 2017. "
@@rileyxbell you're not supposed to use it for personal use. If you do you're supposed to keep track of the mileage and you are only supposed to deduct the percentage of business use. I work 1099 so I know. I also just deduct 100% because my tax person says to.
What do you expect when you have millionaire career politicians writing the tax codes?
As long as we allow companies to lobby in congress this will never change it time we make lobbying only for individuals again
Ban lobbying period.
After the infamous SCOTUS ruling equating corporations with individuals, that will (now) never happen.
@@trance9158 they’ll just change from “lobbyist” to “friends of congress members” to duck the system. What we need are term limits. Companies will have less power over government if they can’t build 20+ year relationships with members of congress
@@trance9158 I agree! Lobbying should be illegal.
So you want to ban planned parenthood, NRA, the wounded warriors project, the cancer society and other ngo's from lobbying?
CNBC: let’s show them something that won’t be FIXED because the beneficiaries ARE the authors of the tax laws.
🙄
The gov is the problem. They spend over 6 trillion every year and bring in 3.2. Getting all that 180 billion from corporations would raise that to 3.4.
The gove would still be spending about 3 trillion they dont have.
We dont have a tax problem. The gov has a spending problem.
Dont believe the propaganda
"won't be FIXED"
@@segredosdotiosam9989 yes thank you for correcting. I shall update to reflect the most eloquent command of the English language.
What is really lost in this video is the fact that it’s not the companies fault that they are not paying taxes but it’s that the government has written the tax code in such a way that they have done nothing illegal.
And who lobbies the government and pays politicians off via campaign contributions to achieve that desired outcome?
The corporations you say are blameless. Our government is bought and paid for.
those corporations also pay your paycheck and mine. When they use that money to expand, they increase jobs and the ability to pay.
If you feel otherwise, by all means go live in Europe, get taxed 55% and have very little discretionary income.
Its not our fault that's how it works - and I work too (and am likely paying a lot more taxes than you *yeah it was a good year for the startup I am at) - its the way ECONOMICS works. Its not 'trickle down' either.
Designed by white rich people FOR white rich people...
who got the government to write the tax code that way?
@@MGPCycling and those lobby groups are LEGAL. A public company is required by law as a duty to their shareholders to maximize profit and thus use lobbying groups. These companies are operating WITHIN the law. Maybe instead of complaining learn from them and start a business yourself. I did with $300 while I was homeless. I know people from all walks of life who have become millionaires. These companies are not stopping you or hurting you. They are operating in their duty to their shareholders to maximize their profits.
The question always seems to be how can we increase tax revenue, but very little is spent on the why.
: )
My tax dodge is legitimate - In my retirement, I live on an income below the poverty level and I'm having a wonderful time on extended backpacking, bicycle touring, and paddling trips while living in my vehicle in between times. This lifestyle is keeping me happy and healthy at 72 and I'm still adding a little to my savings account every month. My main advantage is VA health care and long term care when I eventually need it.
Right on ! , I have a motorhome and I stay in California. Worked civil engineering for several years and I love this lifestyle. Freedom and minimalistic is a great way to live . Sounds like your doin it right. Happy trails!
This is called "living within your means" and based off your own efforts being paid back to you. People who live off credit live off the effort of others with no intention of paying it back before they die. This is the inherent flaw with the system in that there is no mechanism to reward people like you who keep the system afloat by propping up the irresponsible ones that threaten to make it implode.
34:05 "There are individual retirement accounts, some of which are not subject to federal taxes." -- I am pretty sure this is not true. An IRA is tax deferred. As its value goes up, so does the level of tax when the money is eventually taken out. A Roth IRA is taxed before you invest the money.
Eliminate income tax and replace with a sales tax. The governments spending would be tied to the economy meaning if we are doing well the government is doing well. The cumbersome process of every citizen and corporation filing their income tax would be eliminated which means more freedom for the people and a reduction in the size of government. The IRS could be reformed from a government organization that monitors the citizens to a citizen organization that monitors the government. Environmentally this would tax people/corporations on how much they consume rather than how how much they produce.
Maybe sales tax should be incremental depending on the scarcity of goods...like higher sales tax for luxury goods. The rich can afford to pay premium price for the LV tote while placing lower sales tax on essential items like diapers, milk so as to not penalize the rest of the population.
@@myownlilbubble So you want to give the government the power to define what is and what is not considered a luxury item.
While I understand your justification and aligning government outcomes to output, the sales tax is a regressive tax - not a fair tax. It has more impact on low income earners than high income because expenses represent a higher percentage of total income.
@@jessem4659 I can make the exact same argument about the cost and time of filing an income tax return. It impacts low income earners more than high income earners. In fact the entire income tax system impacts low income earners more than others. Income tax is intentionally designed to tax the poor and middle class while having the appearance of taxing the rich. Rich people usually own businesses and capital assets which means that they don't have a job that provides income that can be taxed. Their wealth is based upon the value of the shares of the business they own or other assets. That wealth is not taxable until it is realized which means that they must sell their shares or property to incur a capital gain. A sales tax ensures people who live a millionaire lifestyle pay tax based upon their consumption.
I do a lot of work with taxes, and it isn't true for all tax laws, but many were set up to encourage people to act in certain ways and incentivises them to do so by using tax breaks. I have made a couple video's on the subject.
What really concerns me the most about taxes - is how the government mismanages the money I give them and how bad and ineffective government programs are. I would much rather have amazon or Google keep its money until the government starts spending more wisely and cut down half of it's useless programs.
Have you ever seen how badly a corporation can mismanage money? Give me a break, in some cases corporate dysfunction eclipses government so bad because they have limited transparency and accountability.
It may be legal, but it sounds like companies are keeping double books - which are considered crimes for individuals usually
This is such a more nuanced discussion than “evil companies don’t pay taxes”. It’s a trade off. If the government allows them to write of expenses then they are incentivized to reinvest profits into the business, allowing the company to grow in both size and headcount. Thinking of Amazon, it’s not just Amazon employees, but think of all the tangential businesses that are positively impacted by their growth.
Yeah, all my money goes to tangential business too
Yeah uh....NO!!!! Amazon is a PLAGUE! Underbidding it's competition, becoming a major Monopoly, all because they 'reinvest' into their business.
Amazon should have failed and been replaced by a smarter business that didn’t need to fail for so long until inertia took them to the top. Also, think of all the tangential businesses that have been harmed by Amazon. I don’t get your argument that corporations would not be investing in themselves if they were taxed. They would be pretty bad businesses then and maybe should fail instead of being propped up by not paying taxes.
I had a corporate landlord in 2015. It was my worst landlord ever. They never wanted to fixed anything, had rude staff and they unethically charged for damaged that didnt exist.
The property lived in was purchased as a package for roughly $65k and was updated to rent out for $1100 a month, it is currently being rented out for $2k
The government is basically telling you to find a way to get rich because all that means is that you’ll probably creating jobs and aiding economic growth but that’s a large task at hand but these days it seems like there’s a wealth boom with how trendy it is to be an entrepreneur
I make 2000/biweekly. They take 20% off for taxes which is $500. Definitely UNFAIR !!!
Start with Companies with employees on food stamps due to low wages- they should repay the government for that cost. government is subsidizing what companies like Walmart should directly pay for
what about the company have the option to give some of the tax due to employees instead of government? Much more efficient.
Retired 20 years ago at 45. Have funded this by selling the home I live in after remodeling, buying another. I've done that 3 times, working on #4 now. First $250k cap gain is excluded from income tax. This has made my reportable income under the requirement to even file. It also triggers Medicaid, free smartphone and now free internet at home. I just turned 65 and now Medicare Part B is paid for and I get $0 copay, $0 deductible. That's great insurance even if I had to pay. It's just easier. When I go to the doctor I don't have to try and figure out deductible and make choices based on that.
Good, no one should pay any taxes to the government. That includes a small family business to big businesses.
Quite the fantasy, but ok…
@@kaseyc5078 Sadly it is =\
So how would you pay for the army? Hospitals, unemployment etc.
From my understanding of the difference between "Book Income" and "taxable income," the government actually generally ends up viewing your income as much HIGHER than they let you declare for investor reporting purposes. For example, if the NYT receives 100 dollars for a year-long subscription, that revenue is deferred until the subscription is delivered over the course of the year for BOOK purposes, but for TAX purposes, the government taxes you on the 100 dollars immediately.
So according to Sheneya Willson average workers don’t contribute to the economy 🧐😂😒 Wow, this kind of disconnect is destroying our humanity and our world.
It seems to me that in order for offshoring to stop you must make it more expensive to do that than to keep your company in the USA. Tax rates should mimic those of those sheltering countries. That would make it more expensive to set up and conduct those multiple shell companies rather than just pay taxes straight to the US Treasury.
That's just the problem - tax havens have such low tax rates, they undermine the point of taxation. Mimicking them would defeat the whole purpose. The only reason charging such low tax rates makes sense for tax havens is that their populations and economies are small enough that the benefit from attracting offshore-seeking companies massively outweighs reduced income from charging companies such low rates.
That is not a strategy a country like the US can mimic effectively.
Terrifs do that, but everyone lost their minds when Trump did it.
This is the kind of world we've made for ourselves and our children, better have no enemies when the light goes out, due to the economic criss, wars and rate of unemployment I think now is the best time to invest and make more money for the future.
Investing today is priceless because tomorrow isn't promised, trading Bitcoin gold, sliver and crypto to secure a better tomorrow.
Its nice for people to talk about investment because investment always beats cash..
I understand that tomorrow isn't promised to anyone but investing today is a hard thing to do because I have no idea of how or where to invest..
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So we have a high corporate income tax. So high you have to put in loop holes and this is what you get. A small flat tax and it is solved.
The loopholes are there primarily incentivize certain business practices not lessen the tax burden.
I thought Trump was going to fix all that because he knew the tax code like nobody else.
Correct ,, thats why he has loadsa money !!
Yeah, how was life under Trump v. Biden?
I will take Trump.
He wanted to fix it and a majority of fools 😂 voted for Biden.
Lol
Trump Derangement Syndrome…In your smoothbrains, rent free, for the rest of your miserable lives 😂
Also we need to get rid of citizen based taxation for regular citizens. It’s not fair for US citizens abroad to still be tied to the IRS it’s like you cannot escape the US unless you give up citizenship. Tax the corporations leave regular folk alone.
You'll have to pay to give up your citizenship plus continue to pay for at least 10 more years.
I don't believe in the philosophy of 'the more you make, the more you pay' and call that fair. Instead how about you charge everyone the same percentage of income tax. No loopholes.
So hypothetically if the tax rate for everyone was 20%.
Someone earning 100,000 would pay 20,000 in taxes. And someone earning 10,000,000 would pay 2,000,000. The richer are still paying more in terms of numbers, why do you want them to pay more in percentage. How do they benefit more from that?
I’m amazed how dumb the American systems such as: the electoral college system, the tax code, the penal system, Gerry mandating and on and on are.
They have such a hard working one changing anything for the good of the citizens
I have trouble seeing how tax avoidance to mega rich on housing doesn't crowd out middle class and poor while limiting city services to help regular people. Like housing mass transit and healthcare svces.
We need a government that will control spending and maximize efficiency like Walmart. When we stop wasting money, we will have surplus every year.
Tax news reporting is always an easy way of making people angry, generally who don’t understand how corporate tax works. Companies who spent years making a loss can offset future profits against those losses. Companies like Amazon spent decades making a loss.
Also, capital gains are taxed at lower rate to income to encourage investment and growth as well as well as self sufficiency for people’s retirement. Take away the advantage and people will build their companies and investments somewhere else.
Expenditure on R&D and on green new technologies are incentivised by the government to keep their countries at the cutting edge of technology and to encourage environmentally sustainable investments. You can remove all those incentives but then the US (or any other country) will not stay competitive and will not meet their environmental targets. Remember it’s not the government that offsets carbon, but the companies and residences under the remit of the government that do.
Encouraging certain behaviour by offering tax breaks, then slamming companies for taking them is a dumb game. If you take all the incentives away, companies will shift their research and manufacturing to the place where it makes the most economic sense. A typical “you can’t have your cake and eat it problem”.
Problem is that the reality is far more complex and nuanced than the lay person would like to think it is.
Excellent explanation. To me, as long as 8 billion people have enough food to survive , me or Creator don't have issues with this system. As far as happiness is concerned , it's not the money that makes me happy , it's knowing the truth and the truth is Jesus Christ ( in my case ) . I am thankful to stay alive for 44 years ( so far ) and enjoying this blue planet everyday and I'll have no regrets if I am called in to be with my Master.
Im sorry but who makes the laws in this country? Enough said.And for companies taking a loss doesnt make them any different than rest of us. You start a business and fail with losses its your own damn fault. Those companies are making huge profits and still aint paying.
@@nofear2792 That's why I don't support most of the companies by not becoming their customer. I live frugal life, drink only water and avoid flavored fluids . Cook myself instead of eating outside. Overall I am not really a good citizen to boost the economy. Yet I am quite happy than most of the people I know who are so good in boosting the economy burning their wallets.
@@nofear2792 Its very common and pretty normal for a business to lose money for a long period when it first starts. You can and should always be able to uses the loses against tax years where you do make a profit. You are wanting people to pay tax when they haven't made a profit.
Why would anyone start a business if they could not do this? doesn't make sense.
Future tax benefits from loosing money is a good thing? What kind of capitalist are you? Their reward for losing money is not paying any tax and incentive to improve their business if you believe in market capitalism. This is another weird reasoning to justify corporate welfare. Corporations just want to play both sides and this nonsensical argument is a prime example. If you truly believe in capitalism, then this whole idea of tax losses is offensive and allows inefficient and poor businesses to survive. Which is it?
If governments are counting on the rich / or corporations to balance their budget… then the problem is much deeper.
You cannot be mad at the companies. They are doing what they are obligated to do for their shareholders and maximize profits. (It’s a legal obligation) they are operating WITHIN the law. If you want to be mad be mad at the government but the companies are within their rights and more than that they are legal obligated to maximize profits as long as it’s legal.
You cannot be mad at them for following the law and maximizing their profits which again if it’s a publicly traded company they have a duty to their shareholders to maximize those profits.
AND GUESS WHAT! You too can start a business. I started one with 300 to my name and was homeless. I know people from all walks of life who become successful. Stop finding reasons to complain and figure out how you can learn from these companies and doing something similar yourself.
Ok
Those same companies (indirectly) make all the tax laws, so WE can't do anything about it.. We do not have that much power... So that IS the companies faults...
@26:50 California stated that there was a surplus, but it was only because they weren't counting the unfunded liabilities that were and are still owed. California is as guilty as any entity when it comes to cooking the books to come out ahead.
As a tax preparer I always laugh when people complain about taxes. A single person making 50k will pay about 8.416% in federal income taxes. Meanwhile a married couple making 100k with 3 kids will pay 2.481% (and if Biden has it his way this will be zero with proposed child tax credits for 2022). In fact you will not see a family with 3 kids pay the same amount in taxes until household income reaches 150,700. Let’s not get into the debacle that is the EITC (where the government pays the taxpayer) which costs us $70B a year. The wealthy will always pay taxes because of AMT. This rate is 26% and automatically starts getting calculated for eligibility once a taxpayer crosses the threshold of 200k (meaning amounts above this will get taxed at 26% including item normally excluded, no exceptions). And corporations are taxed differently because they are not Cash-based entities. They are accrual-based entities. And the government loves to let them take deductions or credits for EVERYTHING (including taxes paid to other countries…this is a dollar for dollar credit).
@@AvatarSimulator Nope. $50,000 less the standard deduction for 2022 ($12,950) is $37,050 in TAXABLE income. The first $10,275 is taxed at 10% for $1,028 (always round up). The remaining $26,775 is taxed at 12% for $3,213. $1,028 + $3,213 is $4,241 or ~8.482% (slightly higher number because of rounding.) Also I clearly said FEDERAL INCOME TAXES. Can't include states because that's not an apples to apples comparison...unless I'm doing a comparison of two people in the same state...which is also why I did standard deduction. Removes that variable from the mix. And if you are making less than 53k this year...your highest bracket is 12% (unless you are a dependent of someone else then you don't get the standard deduction). If you are paying MORE, you either need to fire who does your taxes...or your an idiot and deserve to give the Federal government more than it is due since you can't manage your own money or, what should be, a very simple tax return. EXCEPTION! You are self employed. If you are self employed the above numbers do not apply to you because you have to pay 12.7% in FICA taxes, which is reflected on your 1040 (although there was an tax break on this in the last few years due to the Trump tax cuts, this will expire in a couple of years though, much everything else in that plan unless the Democrats renew it in the next year when they start to expire).
@@AvatarSimulator And that's why I'm only dealing with federal income taxes. We pay a crap load in taxes. We have sales taxes, gas taxes, utility taxes, real estate taxes, tolls (form of tax). The average American probably sees at least 25% of their money going towards some form of tax (even if you rent a portion of that rent is paying someone's R.E. bill). Some areas of New York have THREE different state level income taxes. And hey...you only getting $18 is a good thing that means 1) you aren't underpaying and getting penalized for it and 2) you aren't giving the government an interest free loan. Just remember that your employer is paying that other 6.2% and 1.45% for FICA...although...the difference is...they get a tax deduction for it. I'm of the opinion either they can't deduct that tax for the purposes of their federal income tax...or we should get to. Especially since Social Security is a form of forced 401(k) contribution and we get a tax deduction for regular contributions to a 401(k).
They need to get rid of the tax loophole that allows a person to come into the country for 7 years working income and not pay taxes on their business. All they end up doing is when it comes close to the end of the 7th year. They sell the business to a family member or friend and then that person doesn't have to pay taxes on the business for 7 more years. They've been doing that for several decades. AND NO ONE SEEMS TO BRING THAT SCAM UP.
What
I came here 3 years ago
Been paying taxes since I started working
Probably depends on visa ig
Definitely not a scheme for indians too. US loves Indians for it's taxes
@@TheAlchemist1089 what's Visa ig??
@@rh1960 ig stands for i guess
Visa is just the document held by immigrants or visitors
For example I'm on F-1 student visa in the US
Like the local Chinese take out?
The purpose of tax is to provide services for all people. Fun fact, business taxes are a tax on people who buy the goods. i.e. us normal people. INCOME TAX is a tax on individuals, and in principal, only the people who can afford to pay tax, and at a higher rate for wealthier people. It would be better to have ONLY income taxes, so the poorest don't pay taxes (just buiying things to live) and the rich pay a higher rate.
The wealthier also have more expenses than the poor. Wealthy people don't get cuts for education expenses for their kids reaching 80k a year. Not to mention living in a city like NYC where 1 bedrooms go for 5k. I cant fathom the rich paying a higher rate. It should be equal.
But then wouldn’t the rich just move else where, where they don’t pay high taxes, then tax would just move to the poor, it broken either way
@@tonyreyes1076 wealthier people tend to congregate to cities like NYC because more opportunities exist there.
@@tonyreyes1076 statistically they don't but if it were federal that might reduce the chance.
They are never satisfied. Always more. Much waste, always more
Corporations do not pay any taxes, anywhere.; their customers do. Corporate taxes are are a cost of doing business. Taxes, like other expenses, are reflected in the cost of their services or products. High corporate taxes are why products/ services are so expensive in Europe.
When the United States government can't find 6 billion dollars to fund a southern border wall, but a few years later can scrounge together 40 billion for foreign aid in a war we shouldn't be involved in it should be an absolute encouragement to all Americans to pay as little tax or none if possible. When people are having their paychecks taxed heavily it's still driving on main roads littered with potholes people should pay as little or no tax as it clearly not being spent to address the real issues.
Then wait to try and get government assistance. While it is correct that we all make A LOT of money. It's next to nothing by the time taxes get through with us. The government looks at our paychecks BEFORE they remove tax.
If I'm gonna be screwed over and not given any assistance, at least have the money go to something useful, like roads or a better education system for our schools.
No... People moving out of California are not the poor. The poor in California has to stay in California to get their best medicaid and low income incentives. Its the middle class white collared workers leaving California because they can get cheaper nicer homes with better schools elsewhere while working remote/hybrid. California is increasingly the state of the extreme rich and extreme poor. But the middle is what paid their fair share of taxes to fund the low class welfare. So with the middle disappearing from Cali, it will increasingly become a poorly funded state with a huge gap in income.
Wealthy companies should be contributing to this country! Glad this video is addressing this problem.
Yes because the government knows how to spend $$ on endless wars
They are by employing people 🙄
@@alexroman3682 lmaooo
oh you are so sweet. I also admire your confidence in politicians. Glad we have wealthy companies providing jobs..
I remember my childhood friend telling me some story about how she was really distracted and wanted to leave her classroom before she was diagnosed her Teacher took a chair and threw it across the room to stop her wound up nature. I almost couldn't believe it. It is the self regulation that I empathize with the most, it is not easy for sure. I am the opposite of ADHD pretty much, studied the brain to understand things and I seriously think we need to give these kids a break and stop expecting them to change so fast.
How does your comment relate to the video above?
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I agree with some of the points but they pick bad examples. Amazon lost money for close to a decade before they started making profits, that's the central reason their tax rate is low. Also, most of those profits are passed onto consumers with more innovation and lower expenses while it would just disappear into the endless black holes of government spending should taxes be raised. Wealth inequality is a problem but this is not about people its about actual businesses. Amazon is not gonna buy a brand new Ferrari, its going to invest that money into some extremely fast delivery drone, which is better than the inexplainable disappearences of money by the government.
I work for a small company that has 3 employees excluding the boss. He definitely participates in tax evasion not just tax avoidance. But the amount of crap you can write off or claim as a loss is utterly ridiculous. It’s not just big business abusing the rules, it goes all the way to the bottom. His excuse is that if big business can do it then so should I, which to be fair I agree with but nobody should be able to do it to begin with.
Shut up John you’re fired
Thanks for the video. The content is great like always but I wish that when your guests have poor audio, you could add subtitles for better understanding of their words.
The question, why should they pay taxes to the government? What the government does in proportion to what they pay?
The government educates, transports, feeds and provides medical care to these companies education. Among many other things.
They pay zero now but get a helluva lot more than zero. Your logic is flawed badly.
@@politcallycorrect5816 and need infrastructures
The purpose of taxes is to redistribute wealth back to the country's infrastructure and citizens in need, by everyone paying an equal amount of what they earned percentage wise. The rich also use roads, waste sanitation, water, energy and other subsidies that are funded by government taxes.
@@politcallycorrect5816 the money is not owed. That's the point.Totally arbitrary.
Einstein's law of taxation. Its the greatest mystery of the universe. Honesty vs. logic.
The repeated sentiment " oh they are just paying taxes according to the law"
WHO DO YOU THINK CREATED/MODIFIED THESE LAWS IN THE FIRST PLACE!?!
LOBBYIST ... who paid these lobbiest
CORPORATIONS
STOP THE LIES AND STOP DEFENDING THE MACHINE THAT MAKES YOU ALL SHEEP!
There are two types of people. One will see this and complain, the other will take notes.
When you tax corporations, corporations have less profit therefore move offshore to manufacture. When you tax production you get less production but when you tax real property there are still the same number of acres in the same number of square miles in this country you haven't lost anything
This is a lie. Corporations do not pay taxes. Consumers do. Every dollar paid by corporations will be passed down to the consumer through higher prices. Corporations do not have a problem making profits even when the tax rate increases because they just raise rates on the consumer.
If you want to keep jobs in America, increase taxes on corporations who mov jobs overseas. Jobs will start staying here In The states then
@@mattarchibald4912 in other words tax imports increase import tariffs but when you decrease corporation taxes capital gains taxes and payroll taxes then you decrease tax on production but you can protect against inflation by taxing assets
If you tilt to tax mostly-to-only 'acres' then production will be narrowed to fewest acres, and most acres don't produce nearly enough to support US bloat. This DID work in an agrarian distant past, but not now.
Income is income. Solution: Tax all income as income regardless of source or recipient.
Rents => Income
Capital gains => Income
Inheritance => Income
How *RICH* Americans Avoid Taxes
Ultra rich
Wisely.
As a European who travelled to America earlier this year I was shocked at how backward the place looked compared to home. And the people were mostly obese and ignorant.
"How Rich Americans Avoid Taxes" * there fixed your title for you
Actually you can get these things as a small business owner abs you don’t have to be “rich”. You can be an investor without being rich. You can be a homeowner without being rich.
People are claiming to be destitute tho while buying an Xbox or protesting their pay while wearing Jordan’s grills, and chains tho…
Says the guy who has been writing these tax codes since last 5 decades.
This video clearly has bias. First, if you increase taxes on corporations they pass it along to the consumer by increasing their price of their goods or services.
Secondly, while taxes may not be the reason people leave a state they are certainly a consideration. One needs only to look at CA. We are people leaving in the numbers they are…. Not for family reunion. It is primarily cost of living, crime, homeless, deteriorating city environments and taxes. Also, the suggestion that CA, as an example, is not losing population is questionable- why did these lose a congressional seat?
I also seem to recall that the rich 10% pay something close to 80% of Federal taxes. If I’m approximately correct then what percentage should they pay? I did note there was little to no mention of this in the video.
Finally, those states who had surpluses only got there via a federal government handout. CA, again as an example, has north of $1.5 Trillion ( yes with a T) in unfunded pension and health liabilities- they are effectively broke.
The simple fix is a flat tax. No deductions and everyone has skin in the game.
At 15:50, did that woman actually say..."lowerly"?😵
No, those large corporations inspire me to become responsible with my budget, not the government.
Imagine if all the Americans act like Corporations. The US will collapse because where infrastructures, military, medical, and more!
No, Corporations have to pay too. They know Americans are stupid and Governments have enough of Corporations’ behavior.
Hell, Mcdonald's will never survive without the middle class if we follow Corporations’ behavior on tax then all the corporations will collapse. So they owed thanks to us instead they ditched us.
There is one big tax avoidance path that only rich people can do.
1) Receive little or no income from the company/investments that you own but rather have that go to your assets/company/investments.
2) Take a loan out against your company/investments/assets to provide you with tax free income.
3) When you die have your estate use your company/investments/assets to pay off the loans (not income at that point since you are dead).
4) Repeat the process with the next generation.
This seems like a really easy loop-hole to close. Why haven't we?
Option 2 is shoving the burden of financial risk onto the banks....most.smaller.banks might not be able to sustain such a business model in the long run...during a downturn and stagflation......and thus depending on their value to the federal govt POV....federal bailout....again.
@@myownlilbubble These aren't options, it is a 4-step process. For Step 2, anyone executing this strategy will already have a deep relationship with the bank they will use and has lots of capital to secure the loan with. Remember, this is not an investment loan. It is just a strategy to provide income. The loan will not be paid back from the return since there will be none. It is likely secured against the asset that will be used to pay it back.
Re-reading the process, I realized that it works mostly like a reverse mortgage.
I wonder how taxing the companies would change their spending.
Imagine advocating the increased taxation of your landlord, and in the same breath complaining about the cost of rent.
one easy way to fix this would be to put a progressive tax credit system, similar to how every American gets taxed on there income. Basically allow business to deduct all R&D and expenses like the current system allows, up to $10mm. This will incurring small business to grow and people to start new businesses. Once a business hits a $10mm for expenses and R&D then they cannot write off all the expenses to reduce there tax book income. They can only right off 80% of expenses from $10mm-$30mm, the next bracket say $30mm-$50mm you can only right off 60% of expenses and R&D. Next bracket $50mm-$70mm you can wright off 40%. then the last bracket $70mm -$100mm you can right off 20%. Any expenses that exceed 100mm cannot be written off against income. This would help bridge some of the gap between Book income and tax income and create more tax revenue for the government.
Say a company makes $400mm income and has $200mm in Expenses and R&D
Current system:
The company could take all $200mm in expenses and R&D and wright it off against income to reduce there tax basis. So instead of paying tax on $400mm at say the corporate tax rate of 21%. They would owe 84mm in taxes but since they can reduce there taxable income by there Expense and R&D, the company would only pay taxes on $200mm or $42mm in taxes would need to be paid.
Total Income $400mm
Total Expense $200mm
Total Taxable income $200mm
Total Tax owed at 21% $42mm
New system:
In a progressive tax credit system it would allow corporations who make substantially more income to pay their fair share of taxes and not have as large of a brake between book income and tax income.
$0-$10mm 100% $10mm
$10mm-$30mm 80% $16mm
$30mm-$50mm 60% $12mm
$50mm-$70mm 40% $12mm
$70mm-$100mm 20% $6mm
Greater then $100mm 0% $100mm
Total Expenses that can be reduced $156mm
Total Income $400mm
Total Expenses per above $156mm
Total taxable income $244mm
Total tax owed at 21% $51.24mm
The difference between both is pretty small $9.24mm more in taxes but the big effect will be seen when a company it making billions of dollar and has billions in expenses like Amazon. If the American people are taxed like this why shouldn't our companies also pay like we do.
Perhaps the top 10% that pay 90% of the personal income tax should pay even more
Nobody reading all that jazz
A company “moves their headquarters” to another country and buy a P.O. Box or a 1 room office and call that their headquarters. Now the main branch where the ceo the sits around and drinks a coffee at his desk is apparently not the headquarters but the “main extension” not sure if this is how it works, but I think it does.
Many Americans are avoiding it by not getting a job.
Yeah that minimum wage job costs so much in taxes. They get an earned income credit. More money back than taxes they paid in....I was one them...
Why provide an April 2021 segment on tax flight in May 2022? Surely there is better information on that now.
As a libertarian taxation is THEFT.
The title of this should read "How Rich Americans Avoid Taxes; While The Poor Are Taxed Beyond Their Means"
…trying to raise emotions about companies avoiding paying billions to a government that wastes TRILLIONS annually.
(The US gov doesn’t have a tax income problem, it has a tax spending problem.)
By that logic, stealing is ok as long as your stealing from parties that have a lot of money and can afford the loss.
@@Blaze6432 stealing is okay in the governments eyes. As taxation is theft. We had roads before federal income tax was a thing.
@@Kahoobb Yes, we also had food and a lot of things. But I guess the government needs 0 dollars for border security and to maintain anything.
It's tough to try and increase taxes on realized dividends & capital gains because there are intentional incentives to compensate for the risk involved with investing.
W2 income is close to guaranteed income - you work 40 hours and typically receive a check the following week (hourly employees, paid weekly).
- Yes, you can lose your job; but most people receive pay for the work they've completed.
You can invest what you think are stable blue-chips and if they fail, there goes your investment.
- Yes, you can "write-off" some of your annual losers up to a certain $ amount. But, that only helps you recoup a % (equal to your taxable rate, up to a certain amount) and the rest is lost.
Also, the idea of no taxes on stock gains until you sell being a problem, is just wrong.
- Look at few stocks on a daily chart and see how they go up & down. How would you even try to fairly tax that?
- That's why they solved the problem and tax it when the gains are "realized". Until you turn that share into $$$, you only have a number on a screen.
Bonds, they've got wrong (in general). Typical bonds, you pay ordinary income tax on the interest.
- US bonds, you typically only pay Federal tax. Municipal bonds can avoid both.
- If you are buying & selling bonds, the gain you get is capital gains similar to a stock. But, that's because you're trading them....
Loans on assets are great - but less great as borrowing rates increase.
All taxes go into corrupt politicians pockets
Corrupt businessmen to corrupt politicians is not much of a difference.
Wouldn't the accelerated depreciation then have you showing a LARGER profit in every year other than the first year??? Seems like you just defer the taxes. Still have to pay eventually
Who said the government should get that much mo ey anyway?
MIN TAXES ON SMALL BUSINESSES..AND MAYBE A 10-20 %..TURNOVERTAX ON ALL STOCK EXCHANGE LISTED COUNTRIES..
For the record. Current tax system was favored and signed by President Trump. Some of his friends are the CEOs and Presidents of the companies who use these laws to skirt the rules. They also make donations to members of congress. And Congress writes the law.
I hope everyone that takes the time to watch CNBC videos is smart enough to realize that all these great ideas to "raise corporate income taxes" comes out of our pockets.
No they are in denial.
do social media earners such as youtubers and tik-tokers pay income tax.
Never forget, taxation is theft!
You avoid taxes every year you claim an exemption.
Tax avoidance is Patriotic. Tax Evasion is a felony. Failing to file is a misdemeanor but leaves The Statute of Limitations for Evasion open. Knowing The difference between Avoidance & Evasion is key & The issue. Inflation is a hidden tax. 🐥🚿🚭
@@goldcicvibefel7628 Taxes are theft, you are thoroughly confused.
I ask you to think about this "Companies do not pay taxes, Companies collect taxes"
Do you think for one second that the tax load is not included in their expenses and driven into what they charge for their products?
Right, I have a hard time understanding why corporations should pay taxes at all. Seems like a cheap trick by the government to pretend that somebody else is paying the taxes so it is all free money to buy votes. If the companies can't make a profit they will go out of business. If they pay dividends to the stockholders, that is income for humans and they can pay taxes on that.
How are different tax rates for people fair? Shouldn't equality mandate everyone pays a flat rate, regardless of race, gender, age, or income?
A flat rate sales tax would be the absolute simplest solution. Everybody would all be paying the exact same amount whenever they purchased an item. You would only be taxed that one time. The entire tax code could probably fit on a single piece of paper.
The sales tax would have to be gigantic to make up for the loss of income tax. It would also hurt poorer individuals since those taxes will represent a greater proportion of their income compared to a wealthy person.
#1. Run for congress
55% of Americans don’t pay taxes because they are “poor,”… the same group of people asking the successful, hard-working rich to pay more taxes. If you punish success more, corporations will move out of the US, and we will end up more people not paying taxes because they are poor results of losing their jobs.
You're completely ignorant. Didn't have that problem before Reagan gave corporations a huge tax break. It didn't effect jobs negatively during the 40s and 50s when the rich and corporations paid an very high tax rate. Educate yourself.
Not all rich are hard working. When you’re born into the Walton family you don’t even need to work to be rich. Corporations (not cooperations) will never leave because of the massive market the US offers. They may setup some offices offshore to avoid taxes, but will never stop selling in US.
Asking the rich to pay the same tax rate the middle class does isn’t punishing them. Buffet’s tax rate is lower than average Americans. He himself said it’s not fair.
Where did you get the 55%? Sources?
You know at one point the tax rate was 91% for the top 10 percent right?... And they stayed put...
Money is made up so calm down. Dam billionaire lackey
@@hunnybadger442 I don’t know, the world is very different today. Countries compete much more directly with each other today. It’s much easier to move today than it was 50 years ago.
Since a corporation is considered as an individual entity...the same rules and regulations should be passed down to small businesses and individuals.
You know. More tax = More price + Same income = Less things to buy or even eat.
More tax = more equality. If we tax all the people making >100K or more, there will be no inequality, racial injustice, systemic racism, non-binary/polygender discrimination. US had a thriving economy when US tax rate was 90% in the 1960s.
@@cheaserceaser You are kidding, right?
@Splarkszter Truer words were never spoken.
You're clueless.
The divide between rich and poor already began to widen in the 70's but got exacerbated with Reagun (Ketchup is a vegetable, right?)