The Tax System is Broken... in Just The Right Way
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- Опубліковано 28 вер 2024
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#tax #finance #money
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The Federal Tax Code when written out from beginning to end is about two thousand six hundred [2,600] pages long.
Depending on who you ask it can be as SEVENTY THOUSAND [70,000] pages IF you include all of the relevant legal rulings on the contents of the code itself.
This snowballing complexity would be a big enough headache by itself, BUT the biggest problem of all, is that the Federal government only collects about a dozen different taxes…
The guidelines on what these taxes are, how they are calculated and how they are collected take up a total of about 250 pages… everything ELSE in the code is allowances, credits, deductions, offsets, incentives and deferments.
And that’s just FEDERAL taxes, things become EXPONENTIALLY more complicated when local and state taxes are included as well.
Now it doesn’t matter if you believe that all taxes are theft, or if you think that the rich should be taxed out of existence, the CURRENT system is broken in JUUSSTT the right way.
Ok so it’s no secret that tax loopholes benefit the rich… and that’s for TWO reasons… HOWEVER most people choose to just focus on one.
The first reason is because wealthy people can afford to pay the billable hours of accountants and tax lawyers to set up their personal finances and business structures to take advantage of these loopholes.
According to the National Association of tax professionals the average cost to prepare an individual tax return in America in 2023 was two hundred and forty eight dollars [$248].
That’s ALREADY more expensive than it should be BUT tax services go way up from there.
Tailored tax services that submit the paperwork required to take advantage of some of these loopholes can cost tens of thousands of dollars every year to put together. That means that it’s only worth it for people that can save hundreds of thousands of dollars in tax by diligently structuring their affairs.
The SECOND reason that tax loopholes only benefit rich people is because… they are the ones that pay tax.
But distorting already highly problematic markets is just the first problem with the loophole arms race.
So it’s time to learn How Money Works to find out why our taxes are so hard to fix.
Schedule a free demo and see how Odoo can optimize your business → www.odoo.com/r/xwl
Rigged elections = taxation WITHOUT representation
how do you see your old new letters, i want to sign up but there are some spasific ones i want to read but dont know how
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I looked up her name online and found her page. I emailed and made an appointment to talk with her. Thanks for the tip
It's not broken; it works perfectly: people who work get taxes deducted automatically from their paychecks, while the oligarchs pick and choose how to pay their taxes and can use various techniques to completely mitigate taxes.
That defines what is broken in the system to begin with. Ideally freedom of the citizens creates power in them which in turn creates a powerful nation.
What is a W-4
@@christiangonzalez865I believe Ivan’s point is that the purpose of the tax system IS to exploit the poor and preserve the wealthy. Therefore, if we don’t want that outcome, something else must be broken. Probably the part of our culture that allows the wealthy to build tax systems designed to preserve their wealth. I wonder what part that is…?
You, do realise you can do your own taxes as an employee... right?
@@ayathados6629 Yes, you can prepare your own taxes. That's not what I'm talking about. Your W-2 pay stub gets Federal, State, and other taxes automatically deducted from your paycheck. So, if you earn $2000$, let's say, you get Federal taxes deducted, State taxes, and Social Security taxes, so in the end, you get $1400.
I make like no money but I always freak out about making sure I get my taxes in before the deadline. Then I heard the IRS is going to "start going after" people who make 400k+ per year and just don't bother to do their taxes because they don't feel like it
I work abroad and am under the federal threshold for paying income tax (for married couples, it’s absurdly high - like $~220k), but even *I* got an adjustment letter for what I owed, leading to this amazing line after stating that they found an error in my tax reporting:
“Your estimated tax: $0
IRS estimated tax: $0”
fear mongering comment
The truly infuriating part is they know the number!🤦♂ They know how much taxes you owe, but you have to play a guessing game...and the penalties for being wrong are stiff...
They don't know the number. The know the maximum number. You could have a lot of deductions to lower that number.
@@rightwingsafetysquad9872shouldn’t be any deductions or credits tho. Maybe 10 total. If that.
@@newagain9964 Maybe ideally, but in reality there are 10s of thousands of possible deductions. Ideally there'd be 0 deductions because there wouldn’t be any income tax.
My income is taxed
My spending is taxed
My owning is taxed
My use of gov is charged.
Wtf
Its not "loopholes". Complexity equals corruption. Politicians wanted that, and rich people hired lobbyists 10x smarter to get nuances inserted into mad policy that provided relief that was opaque to the average staffer writing summaries for members of congress, knowing the member never reads the bills they vote on or existing statutes incorporated by reference. To end loopholes... end progressivism codified in the tax code.
Or just go to how things were before Lincoln, small government.
“Oh no they are jumping over the walls we made”
…
“Oh no we can’t have a cure for covid lets move those walls!”
“Oh no those walls we removed are removed and now political careers ride on it and they are open to trying new stuff so much we can’t have some stuff because it isn’t proven to work despite claims!”
…
Why isn’t it proven to work?
It takes 1 billion dollars needed of tests and 10 years wait.
If you want to break down any cures such as the 5$ diabetes insulin and so on go ahead keep paying 200$.
Want it nationalized and put to ‘i het promoted just by pushing buttons i don’t care’ HR management style work, sure, just don’t forget you can’t sue the government if they try to ‘meet Quota’ and cut corners.
Or if they just stop making it but without sellers there are none, welcome to importing this but welcome to jail without any insulin because insulin not nationalized would be illegal.
This is why a guy with aids was told he had a year or two to live, denied a medicine for it because ‘it isn’t approved’
Keynsian economics the ‘great society’ the builder of the welfare state had to make monopolies because he failed at a normal boom and bust cycle.
Deregulation is treated worse than the word genocide.
Or you can do as a Manhattan Jew and commit the tax code to memory like it was your Torah.
and at least 75% of the populace (poor included) would do exactly the same IF GIVEN THE OPPORTUNITY.
*Reprensetantive* democracy hands an absolute minority (1 in ~500k) the power to create and maintain rules that apply to all and can benefit a few at the cost of the rest - WHAT ELSE IS SUPPOSED TO HAPPEN?
The tax system is no different to the law , all an illusion with all the answers out there in plain sight. It’s only enforced by the masses who conform and bow to them and the mercenaries that police it .
@@joansparky4439facts
7:46 They took away my education credits because I forgot a book receipt. Yes, a $150 book. It took away my $4,000 education credit
Can you take legal action? I was going to suggest violence, but youtube loves to shadow ban me and delete my comments.
😢
So they audited you and you didn't have receipts, or what happened?
@Justsomeguyyuyu and what triggered the audit? Something smells funny.
@Justsomeguyyuyu from the video it seems like you're much more likely to be audited if you make less than 20k than you are if you make over 400k
I am 75 and most of my income is from dividends which I am paying a marginal 15% rate on. I can not understand why I should pay a lower rate then people who are working.
If Jeff Bezos gives his fortune to charity either during his lifetime or at death it escapes taxation, this is a very expensive problem for the U.S. govt.. I don't have a problem with his wealth not being taxed until he sells it or otherwise disposes of his Amazon stock, but at some point it needs to be taxed.
One reason a lot of tax loopholes are hard to close is because members of Congress benefit for them and they are not going to vote against their own self interest.
then write IRS a check bro
And when his children inherent his company the cost basis is reset and everything up to is death is tax free to his heirs.
@@HairyPixels While I do not agree with this tax law I am not stupid.
I also get a property tax benefit as a long time property owner in Michigan that I do not agree with. But I am not writing a check to my city either.
If you think you need to pay more in taxes you are free to donate to the U.S. Department of the Treasury. Pay more? You first.
If he were to donate his fortune to an *actual* charity(or charities), I won't have a problem with that. The government might have a problem, but I don't (and arguably the charity would undertake some of the public service the government otherwise would have done so that the government effectively benefit via saving money, so there is no real difference).
The problem is, most of the time charitable donations are made to foundations controlled directly or indirectly by the donor that ends up benefiting the donor or family thereof somehow. This include political non-profits that turns the entire US government into a money laundering operations (you donate money to the foundation, foundation donate to campaign of the politician, politician writes law to benefit your business and/or grant you government contracts).
In Portugal we have a complex system but very accessible. There's automatic deductibles, and you just need to press a button.
How hard would it be to "start over"
very hard without really shaking up markets, but it also wouldn't be completely impossible.
Depends, where are you starting over? If it's in an existing country, that's called revolting and that tends to be bloody, violent and destructive.if you can find some land in which to build a new country, it's a bit easier or at least less confrontational.
Would be significantly harder than you just learning a viable skill to live a good life, so you don't have to constantly be envious of those who are more successful than you.
You're not going to be the one leading the hordes of rioters, they're going to be listening to the MSM and social media "Influencers" who are all in the pockets of the criminal ruling class.
BLM for example. For all the momentum they had, what did the truly accomplish in the end? The founders bought mansions in white neighborhoods.
Movements get hijacked. And movements of people who aren't particularly bright (Which is why they weren't making that much money in the first place), are going to get hijacked easily.
And of course there is no guarantee that things will be better when the dust settles. In all likelihood, the system is just going to get replaced by a worse one, because again the people who will be in the streets destroying stuff aren't what you would call our "Best and brightest." They're a bunch of useful idiots, and they're never going to be anything more than pawns for the criminal ruling class.
@@HowMoneyWorksmedia outlets would impact the markets
@@Waldohasaskit210
I think they mean a bunch of economists and whatnot get together and completely rewrite the tax code.
I'm a big supporter of value taxes. The problem is they need to replace existing taxes, not in addition to.
Explain value taxes and then I will try to figure out some loopholes
Am i too european to understand?
Yes.
You are, unless you are German or maybe British. Then you might understand.
I have never spend more than 10 minutes doing taxes in the netherlands. As an ordinary worker all income is already accounted for by the government and the only reason to do your taxes is to add deductables like charity/healthcare costs etc. Its really simple. Although i don't know the same can be said for bussinesses
@@papito8273because you never tried to do business. Huge plus for being a wagie.
@@TheDeveloperGuy No way you are actually calling people working wagies lmfao
I’ve watched your channel from the beginning. I get it’s not an inspirational channel. I do enjoy your views on a lot of these things and at first it was very interesting to learn why some of these things are the way they are. At this point though it just feels like learning why your car is broken but also learning there isn’t anything that can be done about it. What’s the point? I think it might be nice if there was some actionable advice or some point of progress that could be gleaned from your content because otherwise I tend just to skip it because I don’t need to be reminded of more shitty things most days.
Very easy to suggest my friend but it's very hard to implement especially if the one passing the law will reduce their monetary gains.
If the IRS already has computer records of everyone's income, why can't they just send everyone a tax bill at the end of the year? Why do people have to spend hundreds of dollars and a ton of time trying to piece together all their tax records? The IRS should just send everyone a "suggested" bill for taxes (or refund) at the end of the year, and those people who don't agree with it could then appeal it by filing an individual tax return. It's not rocket science. Why don't we have it?
Corporate lobbying from TurboTax annnd idk what others may be responsible for
The IRS wants that, the people want that, but turbo tax and other tax filing companies have lobbied so hard that now they get to make money off something that should be automatic. Finally the IRS and Biden have been able to push through a sample IRS site last year which allows you to do the super simple and normal way instead. But clearly the Republicans only allowed it in a few states to begin with.
If you actually look at the government auditing reports over the IRS, they admit the IRS has a material weakness in their computer systems. So no, they don't have that info - which is why they harass folks with audits even though the person didn't actually make a mistake (cause they don't actually know the answer). Remember too that studies have shown nearly 1/3rd the calls from taxpayers to the IRS Helpline DESIGNED TO HELP TAXPAYERS WITH QUESTIONS actually end up with the incorrect advice! If the IRS can't even know the law, how the heck are ordinary people supposed to?
Because TurboTax lobbies it into oblivion Everytime it gets introduced.
The responsibility would shift to the government if this were to happen. Under the current system it’s up to the taxpayer to report all income and if they don’t then it’s tax fraud which comes with severe penalties. If we had a system you suggested then taxpayers who have unreported income would not face as severe penalties for unreported income. The IRS would need more funding in order to audit more people and to implement this system. There would also need to be more income reporting options shifted unto business owners. Mind you, I still think we should have an automatic filing system for taxpayers with simple returns, however that in itself is very difficult to determine.
For most people the IRS should just do their taxes for them and then tell their employer how much to withhold from their pay. If the person has certain deductions they want to claim other than the standard deductions that can be on a form they send to the IRS. That would take care of most people's taxes. Only people who get most of their income in other ways than as a paycheck would still have to do their own taxes or have their tax people do them.
Which is literally how it works in at least most part of Europe - We get a form that we can look over, the company we work for provides their side of the taxation form, match the two, confirm that they are the same number and voi la!
Freelancers or people working for specific digital companies, taking donations etc, do their own form on top of it or hire an accountant to make sure they submit the correct forms.
You are trusting the same idiots who can't even accurately report their own spending! At least this way, if we keep limiting how much funding the IRS has, they don't have as much money to come after people for simple mistakes! Rather than defund the police, I'd like to defund the IRS!
@@turkizno Also in Australia and New Zealand. H&R Block has (true to its name) blocked all attempts at doing this in the US -- They (and Intuit/TurboTax) spend serious millions on lobbying to make sure that taxes in the US are difficult to do.
Thats literally how it works here in Serbia. Your employer pays your taxes from your wage. Any money they give you is yours and the goverment can only take it to you via bills for government services.
If you don't like filing a tax return, blame Gover Norquist alongside Intuit
Not sure where you got this idea regarding Norquist. In fact, Steve Forbes in his Flat Tax book agreed that his side would look the other way if the government chose to spend money on re-training programs for accountants because the benefits of a flat tax would so out-weigh the costs that for once, a government program would pay for itself!
I blame Congress. Both parties and even Bernie Sanders insist on using the tax code for social engineering.
@@commentinglife6175 Norquist (along with Intuit and H&R Block) lobbied hard (ie., spent tens of millions) against these reforms -- he and his anti-income tax buddies want people to hate the tax system -- Norquist likes it when it is so hard that people hate it.
3:58 There really needs to be a system the wildly scales up costs for owning residential property that isn't your primary residence. Turning shelter into an investment vehicle has destroyed so many lives.
everyone talks about depreciation, but noone talks about depreciation recapture. Basically, having assets taking depreciation one year, then the assets disappear completely the following year whether of their status (sold, retain, covert)
abolish income tax (more dynamic sales and capital gains tax), no more corporate stock pay. A campaign to revert all exploited loopholes and sue said parties for criminal mischief and conspiracy. Such as the rich in Wyoming who "donate land" but still retain access in perpetuity. We're already in crazy debt in a system much worse than what I proposed. No matter how robust a system is if we can't bring down spending then those with influence can tell any story they want about the economy.
Just be careful, because I guarantee all those people with intercontinental-range jets and dual citizenship aren't afraid to use both.
@@bigscores7237 What will they do with their investments - they are all still here and taxable. There's a limit to how many hotels and casinos people can buy in monaco; once you have gone through the hassle of giving up citizenship.
Focussing on the UK, I already knew things were messed up in London's property market, but what the hell's going on in Bournemouth and Dorset?
The emphasis on the role of regulations and loopholes in exacerbating income inequality is particularly sharp. There's no doubt the system needs reform, it's simply become too complex.
The lower 47% definitely pay income taxes, it's literally taken out of their paychecks each week. And they definitely pay other taxes to, like sales taxes, property taxes if they own a home, taxes on their interest/etc.
I don't know why the gov thinks it's best that a few people own all the property forcing everybody to rent.
More control over the population. When people own the home they live in they have the freedom to do what they want in life.
Yea - so much confusion between the meaning of 'income' and 'wealth'. Wealth is a much wider category that includes income but is not income itself (this includes things that cost you money to maintain such as your car or your house that do not, inherently, give you income) while income is money earned either from selling things or working a job but does not include things (objects, essentially) that you already own that would be worth X dollars IF you sold it. Related, but very different things/concepts.
I don't get why you say that canada offers more incentive for real estate buyers. Our mortgage interests are not tax deductables as in the us. That is a major incentive to me.
If we freed up all those hours of people doing taxes that are accountants or financial experts, they could turn their eye towards auditing and compliance & watching for fraud in all aspects of money.
If your income is too low to be income taxed, that's a problem. And when the talking heads complain about the number of lower income people who don't pay federal taxes, they completely ignore all of the purchase or use taxes and fees that we pay.
As far as the capital gains tax break, what if we only allow it on the seller's primary residence? If I remember correctly, there are tax advantages for primary and secondary residences, and apparently this capital gains loophole isn't restricted to that? That just seems silly to me.
I did not expect my country to be mentioned here
So in short: It's your average "This system is terrible and affects negatively nearly everyone but those who profit over this have the power to keep it this way." As always.
So..... actually bother to FUND and STAFF the IRS? That is certainly one of the biggest problems.
3:48 Distorting the market by benefiting some businesses over others is kind of the point of deductions. When homeowners buy solar panels and use it to say... decide it makes an electric stove economical so they get that instead of a gas stove so it benefits the solar company and the electric stove company over the gas stove company, that's a feature not a bug. Is making people hoard real estate a bug? Hard to say, but in the 1920s, if you told the lawmakers that their proposed law would make people with lots of real estate assets keep their assets in real estate, they would say "great, do it" even if some people in the 3rd millennium might be scratching their heads.
Hi from Brazil!
Please, make a video about Land value Tax and Georgism.
The accountants love the complex tax code. And using Turbo Tax lead to an audit because there was an error in the code
The basis of recategorizing of inherited investment assets is not right or fair.
The ability to use 1031 exchange for investing is also not right or fair. It was meant for people that live in homes and promote home upgrades.
I hate how all these billionaires insist they want to be taxed more but the only people who will feel it are the marginally "rich" like doctors and successful lawyers and small business owners.
Here is an idea: rip it all down and start from scratch. Keep what is good, throw out the complex and confusing, and give the lobbyist the finger.
replace all this taxes with a single tax on the value of land
Idk my taxes are easy for my generation. I cannot afford investments, home, or children so the standard dedication for me.
Progressive Consumption Tax!!!
Plus Land Value Tax
Hell yes LVT. This is what I’m talking about. Please make more videos about land use policy
It doesn’t matter some pay more than others it will never be fair My problem is I get almost nothing for what I pay and ‘fixing’ the system doesn’t address that problem.
As a tax consultant, aside from the loopholes, the complexity mainly keeps people like me in a job, at the expense of taxpayers and governments. I’m not complaining but it’s pretty stupid when you step back. Make it so simple that a computer can do it (it can be done, definitions and measurement issues can easily be overcome).
I've been an LVT need for years.
Naturally, I'm *finally* subscribing to the Compounded Daily Newsletter
Flat tax and get rid of the loopholes, and everyone would pay their fair share. But the loopholes are there for anyone who cares to read 2600 pages. The main way the wealthy get around it is a practice of "own nothing, control everything." They own very little in their actual names, instead having assets owned by companies they control. Also, loans aren't taxable events, so the rich/wealthy take small W2 income and the rest of their salary is in stock. Loan against that stock. That is how Bezos doesn't pay. Non-wealthy can do it, but it's much more of a hassle to do it yourself; they have hired guns to handle it for them.
Tax incentives should only last 10 years.
The tax is also overly complicated and esoteric intentionally so most Americans can't understand it themselves and see how they're being robbed blind!
The tax code in America can be fixed but it's going to take a lot of unity from Americans forcing politicians to change the rules. This is arguably a more pressing issue than almost any other political point of contention.
Dubai has no income tax as well and look at their infrastructure compared to ours.
Im just curious how New Zealand has tax incentivises for property because i live in NZ and there seems to be no way around it as ypu cant even claim depreciation anymore.
the purpose of a system is what it does
The only fair taxes are sales taxes and tariffs.
Thanks for the awesome video and for all the amazing content!
It's perfectly fine if you know how to take advantage of it and plan accordingly. That goes for lower earners like myself too, I've pushed my household into the lowest tax bracket every year. Learn the tax code and you can benefit too, it's not that difficult and you can pay way less. Showing how is the video you should be making instead of this it's all hopeless, here's why nonsense. Numerous times throughout this video you've alluded that lower income earners can't understand the tax code, and it's insulting to our intelligence.
My guy, you're taking offense where none was offered. He didn't say that poor people are too stupid to understand the code, he said the code is so convoluted that only people who have dedicated intense study to the code specifically can understand it, and only the wealthy can effectively utilize those people.
@@michaeltorrisi7289 Not my point, and that isn't true. It definitely becomes increasingly convoluted as wealth increases, but it's easy for low income earners to understand what applies and how to take advantage of it. Most people can ignore 99% of the tax code and focus on specific breaks for their situation. It's all about planning.
Land value tax is not without problem too.
My ideal tax code is one line:
Everyone pays 10% of their income
It's because I hate the government, has absolutely nothing go do with the process of paying
California Democrats were trying to pass an easy/automatic file system for state taxes and the Republicans were against it because the pain of paying taxes is one of the strongest motivators for voters to vote Republican.
As a brazilian seen someone complain about the legal code of USA is kind funny because here in Brazil is far more complex.
@taxleverage can you make a follow up to this
I'm not against capitalism, I'm against this monstosity
I hate taxes, that is why I don't pay them :D
It can be explained (Im at 4:16, havent watched it til the end). Since the order is pre-set (red-black, etc), the shuffle and subsequent order of the remaining deck tells the "magician" how to read the order of colours because the deck was pre-set. What this teaches me is that before any card trick is performed, take the deck from the magician and shuffle the deck first. Now the tricks that STARTS with the deck being handed to the audience, who get's to inspect & manipulate the deck... well, there wont be UA-cam videos on those.
Everyone knows whats going on but no one will change it, especially our +$250k congressmen salary holders.
Gotta support the CPA industry somehow right.
Love your pfp btw.
I always love when people call bought and paid for laws - via bribes - “loopholes”. Nah. It’s law. You just can’t afford a congresscritter.
A loophole is a legal term for a condition purposefully left into the law in order to benefit the person writing it (or a related party)
How about just don't steal peoples money ?
Taxation is theft only if you're a wide mail
Wut
I've even read a couple articles showing that in many European countries taxpayers don't mind paying their higher taxes because it's both easier and they see the benefits their taxes pay for (good healthcare, good social safety net, etc.). Though the rich still try to get out of paying them because of course they do.
No one is stopping Americans from paying more; there is even a line item on the tax form to do so. The question is, how many of these whiny rich people who claim they don't pay enough actually fill in that line?
Europe doesn't have insane republicans ruining everything and making more micro exceptions to help their rich friends
@@commentinglife6175 None
11:10 100% of it is because I hate giving money to Uncle Sam.
Georgism intensifies!
I hate giving money to canunckle sam, because it doesn't go as far as it needs to, goes to the wrong things, and others should pay more.
Tox Code(s) are written by the same people who made a business out of it.
I thought my taxes were going to be complicated this year so I went to an HR Block.
Total scam. They charged $180 to do a standard deduction. Buying a house, getting solar, getting an EV, getting efficient HVAC and water heater, none of it mattered.
What kills me is people are taking up for a law that passed 100 plus years ago, ever heard of progress and times changing. We definitely need change in laws especially ones passed in damn 1900s. America is about progress not regress, silly old people 😂
Politicans like Hillary Clinton and Donald Trump won’t change the tax code even though they can because they are benefit from the current tax code every day
They not loopholes they features lol
The idea of doing the paperwork causes so much stress. I should sue for emotional damage.
A wealth tax would functionally be an income tax on the rich. If you're taxed on 1% of wealth every year and a passive portfolio averages 5% returns, then the wealth tax is essentially a 20% income tax. If we believe that accredited investors are truly smarter than average savers then they should have no problem generating at least a 1% return to pay uncle sam.
And what happens when the stock market goes down? Does the decrease in my wealth entitle me to a refund? Or do I still owe 1% of what I have left?
And if I have to sell stocks to pay the wealth tax, how does that impact the taxes due?
@@mikespangler98 Well, to your first point, you won't be owed a refund. But those losses could be tax deducted for whatever you have left. To your second point, you will get taxed on whatever your wealth was during a predetermined period. So, if you have to sell assets to pay a tax, you will have lower taxable wealth in the next tax period.
@@olamilekanakala7542 So I can deduct unrealized losses from my taxes? Presently one can only deduct realized losses, and one only pays taxes on realized gains. Wealth taxes tax theoretical gains, what the investment is worth at the listed market price on the last business day in December.
For stocks, bonds and precious metals that's an easy determination. But for real estate or a privately held business? That's a lot of appraisals to do in one month.
Recessions would be truly brutal. 1% of wealth forcibly liquidated into a down market to pay the wealth taxes, driving the market lower, crushing the consumer economy, and thoroughly obliterating 401ks and IRAs. Or are they exempted the "wealth" calculation?
If one owns forest land you have to log 1% of it per year. If the land is worth more as a housing development then it might have to clear cut and sold to pay the wealth tax. For mining, do you go by proven or possible reserves?
If you only intend to tax stocks, bonds, and precious metals then there will be flight of of those assets into something not subject to the tax. That will make a wave of secondary distortions in the economy.
Crushing the "evil rich" with a wealth tax sounds great until you think about it for a few minutes.
@@mikespangler98 a lot of excise tax/ property tax rules can translate to wealth tax. A great way to implement this without burdening individual taxpayers with the accounting is to just make securities managers/ real estate managers/ asset managers/ LLC managers pay an additional 1% on assets managed. That would cover the vast majority of taxable wealth and the only impact on individual finances would be a blip on the expense ratio.
Every time I want to stay depressed., I watch another of your videos.............
Average income is 111$??? Defuq
ye what the
As someone who lives in Europe where youe employer does it, we still hate taxes
At least you get healthcare and a pension, we get nothing.
What I've never understood was being so reliant on deductions. Instead of adding a tax deductible for say, families, the government could not do that, then give welfare payments to families. Or subsidise school meals, childhood medical costs...etc. in such a way that'd it'd have the same effect.
Completely aside from how much different people ought to pay and take out towards state money, the current system is an unnecessary admin nightmare.
Taxes are for the peasants
taxing capital gains the same as ordinary income is such a dumb idea..
The money coming from capital gains will likely just be put into more businesses anyway, so it stunts growth of companies just so that the government gets more of it...
Do you really think the government, the largest monopolistic corporation in existence, should be the one given all of the money rather than people who provide direct value OR go out of business because they don't offer a valuable service?
There's a reason why the government is inefficient, because in business if your inefficient you don't last and are replaced by the next business that innovated.. With Governments people barely even get turned over, they collect their income, have a pension, and just offer the bare minimum while just requesting budget increases every year.
What are the best strategies to protect my portfolio?, I've heard that a downturn will devastate the financial market, so I'm concerned about my $200k stock portfolio.
There are strategies that could be put in place for solid gains regardless of economy situation, but such execution is usually carried out by an investment specialist.
My financial advisor has been a game-changer, providing clarity and boosting my confidence in navigating finance. With their help, I've achieved my goals faster than I imagined. Highly recommend!
Mind if I ask you to recommend this particular coach you using their service? Seems you've figured it all out.
NICOLE ANASTASIA PLUMLEE' is her name. She is regarded as a genius in her area and works for Empower Financial Services... She’s quite known in her field, look-her up.
I just curiously searched her up, and I have sent her an email. I hope she gets back to me soon. Thank you
Tax laws can be so complex, and it’s super helpful to break them down like this. Understanding how different policies can impact our finances is crucial for making informed decisions.
Making profitable investments during this time of political change can be risky without that insight. For me, working with an adviser is the best first step to navigate these complexities and make informed choices.
I think having an investment advisor is the way to go. I've been with one because I lack the expertise for the market. I made over $490K during the recent dip, highlighting that there's more to the market than we average folks know.
Hmmm this is quite interesting, Please can you leave the info of your investment advisor here? I’m in dire need for one.
Julianne Iwersen-Niemann is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get.
Real OG's remember when the federal income tax was a temporary emergency measure to fund the war.
really? damn, I need to learn more history
yes they had to pass a new amendment into the constitution to make it legal and that happened just over 100 years ago.
@@PrabhablyAGoodUA-camr *Are You Blind? If You Look All Over The News You'd See Titles That Read "US Has Loaned Countries Money To Fund War" And That Money Comes From Taxes!*
*Where Were You This Whole Time? WW3 Is On It's Way But First The US Citizens Have To Squeeze Up Some Pennys First.*
✝️ + 🪖 = 💵 + ⚔️
Hey, Uncle Sam needs more than just tariffs to pay the interest on the big credit card 😂
@scottclark7559 😂 we got the credit card because we had the income tax. Tariffs encourage a limited government because the government doesn't have the money to do anything much.
I like how in most videos we arrive at the conclusion that financializaiton of housing is a cancer to soceity.
What I find surprising is the level of bipartisan consensus on this issue as well. Like we *all* agree.
@@theoldlore I guess there is a sweet spot where you can get both the votes for talking about an issue AND the campaign donations for not doing anything about it.
I think that $? is a communism channel disguised as The Plain Bagel
I think most people would expect socialists to complain about that they most, but I'm opposed to socialism and still want holding residential property as an investment to be massively restricted. It's the only necessity that people or companies purchase en masse not to use, but to hope it gets more expensive for everyone else, thus earning them money.
@@MidwestArtManAdam smith explicitly called out rent seekers,
Capitalism theory is against landlords
It’s just that the people in charge of governments tend to be landlords
Oh YES. Another HMW video telling me more about how everything sucks and is broken and how I and everyone I know are powerless to do anything about it,
And then folks wonder why more and more people are choosing not to have children
do you want a lie?
@@Random17Gamehe’s not complaining lol
The easiest way to simplify the U.S. tax system is to take everyone who has any role in make the tax laws or writing the tax code (including politicians of course) and require them to do their own personal taxes by hand without the help of software. There might not be much change in the first year, but after that things should get much simpler very quickly. If you want to guarantee it, you could also add the requirement that everyone required to do their taxes by hand will also be audited.
Wow you really put all of like 10 whole seconds of thought into that
And I'm sure you were today years old when it first occurred to you.😆
@@jimreed87 wow even less thought into the second comment
How can we expect those in power to make a change -when the change itself would mean being unable to benefit from a broken system.
Here's the big picture:
Those in power need a lot to afford their current lifestyle or status. As long as the system is broken, they'll maintain and milk it for as long as possible.
We would need regulations to prevent those whom benefit from also being those in charge.
Of course, you try and make a Politician give up their Stock Portfolio!
@@lostbutfreesoul that's basically impossible in any liberal system. Because unless there is accountability, people in charge would try to become those who benefit. And it doesn't make sense for them not to. And whole idea of liberalism is avoiding accountability by pushing it back to next elected person.
*If you are not in the financial market space right now, you are making a huge mistake. I understand that it could be due to ignorance, but if you want to make your money work for you.... prevent inflation*
Thanks for continuing updates I'd rather trade the crypto market as it's more profitable. I make a good amount of money per week even though I barely trade myself.
A lot of people still make massive profit from the crypto market, all you really need is a relevant information and some
You trade also?, I tried trading after watching some videos on < UA-cam but still keep making losses, how do you
No I don't trade on my own anymore, I always required help and assistance
From my personal financial advisor
thats the craziest part... i was a big 4 auditor, i worked at a real estate private equity, and then in finance for a defense contractor. the reality? i wouldn't touch my taxes w a 10ft pole!
What do you mean by that? Why wouldn’t you touch your taxes?
@lifeforgod07 if I had to guess, because he was an accountant auditor and had to look thru so many financial statements day in and day out the last thing he will do is look at his own and rather pay others to do it
that - and id just rather let a pro do it. the codes change every year, and (usually) drastically each time we elect a new president. not worth the time/headache imo
@@WhiteCarBlackWheels oh trust me I know. I'm also an accountant and do the exact same
Someone tried to rob me on the street and I said nah and they ran away, did I just find a robbery loophole?
Damn, why didn't I think of that?
top 10 secrets science still can't answer
That was you? I just wanted money for a Starbucks venti.
Someone killed me with a knife in the living room. But here I am. Lol. That guy was a fukken idiot.
Someone tried to rob you on the street, you took out a knife and said to the mob “hey let’s rob that homeless together instead ”, did you not also committed robbery?
The idea of a land value tax is fascinating
Yeah, regardless of whether it's a good idea or not (I don't really know), I want it just because the idea is so cool.
@@zUJ7EjVDI am dying to see some random city / county try it somewhere
How would that differ from property tax? Would it replace that or overlay it? 🤔
@@andreoschadlin I think we should have both. A land tax because obviously, and a property tax to encourage less oversized houses.
@@andreoschadlin Land Value Tax taxes you on the value of the land, excluding any property structures or improvements. Property tax is primarily on the structures "on" the lot.
And yes, a land value tax, if implemented, will be in addition to any existing taxes.
Politicians only listen to special interest lobbyists if no one else is paying attentive. If enough of the public want ready file and are asking to express that desire then politicians will listen to them. Campaign contributions are only as good as the votes they can buy through advertising, but if it's costing them votes on an issue the voting public is paying attention to then the campaign contributions aren't worth it.
so in other words, people are dumb and lobbying is king, and nothing will change.
@@residentes8477 People aren't dumb, just either apathetic or ignorant. My point is that a grassroots information campaign for ready file or tax simplification could overcome any amount of special interest money.
Lobbyists can use this too, nothing stops them creating fake organizations to make it appear larger.
@@Waldohasaskit210We're talking about americans here...
People ARE dumb.
@@Waldohasaskit210Being ignorant/apathetic is dumb though. If you don't care, you don't matter
Aussie here, our real estate tax loopholes are properly fucked. But then so many people jumped onboard that it's pretty much impossible to reduce those incentives without committing electoral suicide. Even though I own a home and from now on will probably benefit from the rules, it sucks for anyone trying to buy their first home or afford rent
In the netherlands, the returns can be done through browser or smartphone app, and it takes you through a plain language questionaire, knowing the numbers for you
The only purpose for taxes is to raise revenue to pay for the govt. Unfortunately our tax code has so many social engineering caveats that it can barely serve the only purpose of having a tax.
The fix requires three huge changes:
1. A flat tax on all income (probably 20%). Income is anything you can spend to buy something else. So that includes wages, winnings, dividends, interest, capital gains, gifts, inheritance, job perks (company paid for apartments for executives; car & driver; gym membership...), unemployment, welfare, etc.
2. No deductions for anything. No deductions for interest on home mortgages, children, being married, charity, etc. A single high exemption for an individual to cover the basic average cost to live (basic shelter, food, transportation, and medical; Bureau of Labor Statistics says it is ~$20k per person; MIT living wage is ~$33k). I would set it at $50k. Every dollar over $50k is taxed at the flat tax.
3. Apply the same rules to corporations. Also I would get rid of 'non-profit' as a tax loophole.
Doing this would basically lower the tax rate and broaden the tax base. The govt. would stop trying to influence people's behavior with the tax code.
2:14 Claiming just half the population of the US pays taxes while ignoring the facts that only 62% of the population is of working age (15-64 y.o.), the bottom 50% has less than 3% of the country’s total wealth, and the top 1% has a third of the total wealth.
Its not even that. Its that we don't even get anything for the taxes we pay. Sure you pay 40-50% taxes in Europe, but at least you get something for it.
Well, you guys get wars waged from your name and we have a dead economy from overtaxation over there.