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How U.S. Taxes ACTUALLY Work! Explained.

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How Taxes Actually Work in the US. #shorts
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Опубликовано:

24 авг 2024

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Комментарии : 2,5 тыс.

@humphrey Год назад

Check out how to build wealth here: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-Tfifs6lJR9I.html

@ari3lz3pp 6 месяцев назад

So is the govt stealing from my family then??? We went from paying about $18k-20k annually income tax, after a raise for about $10k more per YEAR we now pay $30k -40k on average. So that money is literally gone. It's not a raise. Idk if this has to do with higher taxes for commission based work and Overtime?

@ChristopherAbelman 28 дней назад

The financial system has been artificially pumped for over a decade to ensure big pockets were lined; and now those same hands will make a fortune in the largest transfer of wealth in human history by shorting it on the way down. Inflation does have a roll, but that's to keep everyone panicked, and focused on their bills and expenses, rather than focus on the capital crimes of politicians and corporations,I'm still at a crossroads deciding if to liquidate my $338k stock portfolio, what’s the best way to take advantage of this bear market??

@JosephineKenney 28 дней назад

Find stocks with yields that exceed the market and stocks that, at the very least, follow the long-term market trend. However, you should get guidance from a financial advisor if you want to create a successful long-term plan

@HildaBennet 28 дней назад

I agree, I've been in constant touch with an Investment advisor for approximately 17 months. These days, it's really easy to buy into trending stocks, but the task is determining when to sell or hold. That's where my advisor comes in, to help me with entry and exit points , I've accrued over $337k from an initially stagnant reserve of $148K all within 18 months...

@FinnBraylon 28 дней назад

I need a guide so i can salvage my port-folio due to the massive dips and come up with better strategies. How can one reach this advisor??

@HildaBennet 28 дней назад

Google Sonya Lee Mitchell and do your own research. She has portfolio management down to a science

@FinnBraylon 28 дней назад

I ran an online search on her name and came across her websiite; pretty well educated. thank you for sharing.

@StevenAcunaBG05 2 года назад

"wait, you are our lead accountant. How do you not know this?"

@tmills7374 2 года назад

‘’honestly sir i thought this was a mcdonald’s’’

@Sxulzz 2 года назад

Uh gtg get the milk

@saginur4380 Год назад

@@tmills7374Lmaoooo you two made me laugh so much

@GurlinDaBackk Год назад

Remember God loves you♥️😊! Good news is that Jesus paid the punishment for your sins, He died, and rose from the dead on the 3rd day. you are ONLY forgiven and saved by putting faith in Jesus Christ for salvation. Please repent, change your life around and live for Him🙏. He is coming back soon🥳🎊.........

@relaxationmusic5266 Год назад

Not bad, were still robed by tax though

@among-us-99999 2 года назад

A boss refusing an opportunity to not give someone a raise. Unrealistic

@johnmininger8589 Год назад

Ha! No, that's not true. While it may not be universally true depending on the type of position, generally speaking, if he's a good employee, you want him to get that raise.

@Defender78 Год назад

Actually if you gotta raise there is a way that you could end up with less money. Cause once you get that $2000 raise, you buy a new car, move to that 2 bedroom condo, by a bunch of DVD Box sets, buy an expensive cat, and get like 3 more subscriptions for streaming services, treat yourself to a vacation, and increase the amount of times you eat out per week. So if you get a $2000 raise, yes, many ppl will end up making less money

@wildfire9280 Год назад

@@johnmininger8589 Or if inflation goes up, which it will.

@johnmininger8589 Год назад

@@wildfire9280 - If inflation goes up or if high inflation persists? You can assume there will be inflation, deflation is rare, well except in Japan.

@jianipierre5040 Год назад

Point of the video wasn’t to be realistic, it was to teach you about how taxes work.

@memerightsactivist7972 2 года назад

“Actually, I ran the numbers on this… and it actually makes more financial sense to *gain* money…” -Oscar Martinez

@ALEXXXXX3 Год назад

@JacobPrater Год назад

Why do people not get this

@wildfire9280 11 месяцев назад

@@JacobPrater “Libertarian” propaganda.

@JacobPrater 11 месяцев назад

@@wildfire9280 haha

@gabrielcornejo238 7 месяцев назад

Ok explain me this like I'm 5 years old

@Danymok 2 года назад

The boss should have said "you work in a bank, how do you not know this, no more raise for you"

@kyleosborne9605 2 года назад

I saw a video where that’s what happened earlier

@klaus120 2 года назад

@@kyleosborne9605 didnt the guy actually got fired?

@philz9835 2 года назад

Just curious, why would a banker know how the tax system works? The math is the same, but understand gubment logic is not so straight forward. Not to sound argumentative about this, just curious.

@kyleosborne9605 2 года назад

@@klaus120 yeah but close enough

@lostintime8651 2 года назад

Good thing Trump changed the way we're taxed.

@takumifujiwara2083 2 года назад

“So can I still take that raise boss?” “Haha, no”

@captainphilips5469 2 года назад

Yeah enjoy driving a dusty graffiti toyota for the rest of ur life.

@atharvabende8768 2 года назад

Hi takimi.

@takumifujiwara2083 2 года назад

@@atharvabende8768 wsp

@bradlucass 9 месяцев назад

Increasing tax rates are the reason I rolled over my 401k to a Roth. I don’t want to be 59 paying taxes on current income on withdrawals made from my retirement account.

@RafetMert-qs3kw 9 месяцев назад

Pre-tax contributions may help reduce income taxes in your pre-retirement years while after-tax contributions may help reduce your income tax burden during retirement.

@Vinyvasquez 9 месяцев назад

Both have their perks but you can also save for retirement outside of a retirement plan, such as in an individual investment account or employing the services of a retirement planner/investment advisor.

@bradlucass 9 месяцев назад

I have thought about it, but haven't figured out how to get consultation, I don’t live in a big city.

@HermanOberg 9 месяцев назад

Really? Have you searched? Use any investor/advisor tool.

@HermanOberg 9 месяцев назад

Look for Monica Mary Strigle I am close to retirement with 1.4 M to my name outside of retirement accounts. I hired her services 3 years ago, she contributed immensely to my portfolio progress.

@trainknut 2 года назад

"So when do I get that raise?" "Sorry you said no, I gave it to myself while we were talking"

@sapphire8916 Год назад

NOOOOOO! That cracked me up so much!

@mGmgG10 Год назад

Hahahahahahaa😂😂😂

@LeonardoReyes-ob7hv 10 дней назад

Hahahaha!

@snekky3415 2 года назад

In a realistic scenario the boss would've just accepted his logic and not given a raise.

@oscar.esteves 2 года назад

🤣🤣🤣🤣 So true!

@DeathProductions200 2 года назад

The boss wouldn't even question when the employee said "no thanks I have to pass" lets be real. 99% of the time your boss doesn't care if you earn more money or not

@bulldozer8950 2 года назад

Eh depends. Some bosses are amazing, most are shit. If that was some older dude at a smaller shop with 1-2 locations, he’d probably give you a 20 minute PowerPoint on the whole us tax system. If you work as a McDonald’s, the manager would never offer you a raise so you don’t have to worry about that situation.

@overlay5625 2 года назад

@Nikki Lauren they do, it's just that if you refuse a promotion, it's more money in their pockets

@soiboisupreme6247 2 года назад

Not my boss

@abdullahsfarini7684 2 года назад

“Yes, but now you’re fired because you should know this”

@BizVlogs 2 года назад

He was working for H&R Block 😔

@ButterfliesAreNinjas 2 года назад

@@BizVlogs lololol 😂 so true!

@digital107-_- 2 года назад

"Alright ramblers, let's get to rambling."

@vishalpatkar6819 2 года назад

best employee

@jasonh7726 2 года назад

38k a year is 18.27 an hour. The raise is 69 cents an hour.

@RunstarHomer 7 месяцев назад

Nice

@wmp89 6 месяцев назад

You're bad at math mate. It's $1.44 an hour raise.

@Joe_for_real Год назад

A lot of people need to hear this.

@MoliminousTheater 2 года назад

he was then fired... because his job was at H&R Block

@totallynotabotatallclashro6599 2 года назад

No comments on a checkmarked comment AFTER 5 MONTHS? Lemme fix that 🙂

@achoch Год назад

1 comment?

@WizDaPenguin 2 года назад

If you didn’t understand the explanation, think of it like this: If you make $40,526 a year, then $40,525 of it would still be taxed at 12%. Only the dollar in the next bracket would be taxed at 22% Edit: Clarity

@vume2929 2 года назад

Thanks mate

@random_person_i_guess 2 года назад

oh no my 78 cents

@andrewsalim6677 2 года назад

@@random_person_i_guess 22 cents*

@f4road 2 года назад

@@random_person_i_guess lol you got taxed at 78 percent

@WizDaPenguin 2 года назад

@@f4road dam why they switching up the brackets

@Matthew-li7we 2 года назад

I literally have felt the urge to beat people who warn me about "don't go into the next bracket!"

@SSkeleton Год назад

"We hired you as accountant. You are fired" The ending we deservedly

@oscar.esteves 2 года назад

"I'll pass" "Ok buddy"

@ougazu32 2 года назад

That's the most realistic reaction

@WideAwakeHuman 2 года назад

If you're only making 40k a year you need to stop worrying about taxes and start worrying about making some cash

@verynick 2 года назад

Haha at least he is already thinking about taxes. You have to start somewhere

@MrLoschizzato 2 года назад

America be like

@WideAwakeHuman 2 года назад

@@MrLoschizzato well it's a video about American taxes so... Yeah lol

@AB12896 2 года назад

If I’m making 43K a year without OT or per diem as a single guy at 25 I say that’s pretty alright. Buttt I get 734.50 per diem a week with an average of 25 hours OT bi-weekly. So it’s a little boost after my base pay lol

@WideAwakeHuman 2 года назад

@@AB12896 you're only 25 man and single... 43k is totally solid. I'm talking about those 40yr slobs still working at McDonald's or something whining about only making $15/hr. Sounds like you got a plan

@clintmiller88 2 года назад

the fact that so many people don't know this is crazy. I heard this from my mom when I started at a real Job haha.

@johnmininger8589 Год назад

Ha! Well, this actually did happen to me at one point in the early 90s. Got a raise, take home pay went down slightly. Odd timing. It coincided with a change in tax code and several deductions changed. Could have easily misinterpreted what was happening.

@lewisedwardson7776 2 года назад

I've seen a few of your shorts show up in my feed, and I just wanted to say thanks for educating people about things that are helpful in a way that will be successful for the people who didn't already know.

@alksi1 2 года назад

I thought for a good +20 years that if i go over a dollar, i start to pay double the taxes over all my salary.

@MegaShyguy2 2 года назад

A lot of people have this misconception. I just explained this to my younger brother the other day. I think sometimes it's easier to think about what it would be like if it WAS that way. Let's say that $50k-$59,999 is taxed at 30%, and $60k-$69,999 is taxed at 35%. So, based on this way of doing tax brackets, this means that if you're making 58k and you got a raise to 62k, you'd be making $300 less.

@yanniskarageorgiou3573 2 года назад

If you hear someone telling you to it's somehow smarter make less money because it's usually someone who'd like to pay you less.

@tygonmaster 2 года назад

That would be how it is if conservatives with their stupid idea of a flat tax had their way.

@drakemallard1486 2 года назад

@@tygonmaster Imagine dragging politics into everything... 🤡

@tygonmaster 2 года назад

@@drakemallard1486 If you think taxes are not inherently tied to politics, you are the clown.

@letsgets77 2 года назад

I like when I hear "the more you make they take." Ummmmmmm. Yeah, but you still make more.

@joeschmoe6908 Год назад

People are gonna turn down money just to spite the government.

@doblingamez1731 Год назад

People turn down raises to keep things such as housing assistance or food stamps. When you lose assistance the raise ends up causing you to lose money.

@garybregel4606 11 месяцев назад

I was working for a trucking company back in the day. they ask me if I wanted to put in more hours. (Saturday shift) I said sure, so I figured it how much more money I'm going to make on my next paycheck. So when I got my paycheck it was like $300 dollars less than what I figured. I went to the boss and complained about it. He told me that I went over the hours for my tax rate. To a higher rate for that many hours worked. I told him don't ask me to work on Saturday again. I'm sorry but that's not right. I was only making $15 dollars an hour.

@IAmTheGlovenor Год назад

I think you should make a short on how the taxes work for OT. Because literally everyone thinks all your money just goes away forever

@JessMN1974 7 месяцев назад

Just replace "raise" with OT in this short - its the exact same concept

@IAmTheGlovenor 7 месяцев назад

@@JessMN1974 Not quite. Guess you need the video too.

@Quantris 4 месяца назад

@@JessMN1974 so yes, when it comes to the actual taxes, there's no difference between overtime vs. regular pay but the reason for the common misconception regarding overtime is due to withholding. it depends exactly how payroll chooses to do it but it can turn out looking like you paid way more tax than usual on the OT. Especially if people are doing weird things with their W4 it all gets sorted out in the end when you do your taxes, of course.

@5kamon 2 года назад

If US citizens don't understand tax brackets it's on their education system and gov.

@azbag1906 7 месяцев назад

The U.S. education doesn’t teach their youth how to exist outside of their parents home.

@Cgmerre 7 месяцев назад

@@azbag1906which is insane. School is so useless besides math and english

@SummerSiren-lm2ij 2 года назад

Whenever I try to explain this to somebody in a debate, they can't make sense of it because I could never put it into proper words. You made it sounds so simple, good job!

@joshacker5035 2 года назад

If you live in the U.S., it doesn't work exactly like this. The tax system here only taxes the dollars that is made on/passed the ~40,000 mark, where as everything before is taxed according to its own bracket. Besides, many low-lower income households get a lot, if not the majority or even all, of their taxes back in either tax returns or government programs.

@MrMegaMetroid 2 года назад

@@joshacker5035 but thats exactly what the post said so it DOES work exactly like this now doesnt it

@randomlygeneratedname7171 2 года назад

@@joshacker5035 Maybe it wasn’t a good idea to tax poor people that needed help in the first place. 🤦

@antonioiniguez1615 2 года назад

@@randomlygeneratedname7171 Maybe everyone should be taxed at the exact same rate

@speedy01247 2 года назад

@@antonioiniguez1615 thats sort of how the current system works, except there are tax brackets where the amount taxed is raised, however someone who makes 10k and someone who makes 100k are both taxed the same amount for the 10k they made.

@musclegeek1991 2 года назад

I’ve tried to explain this to my father like 20 times

@xhtownx1524 2 года назад

Mine too. He dismisses it

@joshacker5035 2 года назад

@@xhtownx1524 That's because, at least in the U.S., the tax brackets are graduated in a way to prevent this kind of thing. Only the money past the $40,000 mark is taxed at 22%, everything before is still taxed at the 12%, so on and so forth. Besides, most low-lower income households make most of there tax money back in returns and government programs, so you should never be making less money for taking a raise.

@NevrrPresntt 2 года назад

Ok explain it to me like if im a 9 year old. Michael scott

@ViGaNova 2 года назад

Cause your pops smarter than you

@lukazupie7220 2 года назад

@@NevrrPresntt we did bro. Someone try 7🤔😀

@SanchoDomingo_ 2 года назад

I’ve seen so many people make the tax bracket argument so this is extremely useful information for a lotta people here in the US

@ItsAFakeLove-SoEnjoySuperTuna 5 месяцев назад

Hello, Chartered Accountancy student here.. The Tax law i study is not the one discussed in this video, but the logic obviously is the same.. Basically our income is divided into several slabs, and every slab has a particular tax rate applicable. For eg i am from India and if we take the first three tax slabs under new regime they are: ₹0-₹300,000---0% (income below this is exempt from tax) ₹300,000-₹600, 000-- 5% ₹600,000-₹900, 000--- 10% So if our income is ₹700, 000 then the first 300,000 will be taxed at 0%, the next 300,000 will be taxed @ 5% (300, 000×5%= 15k) and the remaining 100,000 will be taxed @ 10%(100, 000×10%=10, 000) Total tax will be 15,000+10, 000= 25,000

@seesidesummerhouse6112 2 года назад

Knows the exact tax bracket, but has no idea how tax brackets work.

@yooo13t 2 года назад

Can you make an in-depth video about taxes.

@poker4080 2 года назад

also when u get a quick moment can u interpret the US tax code!!

@bigrat4452 2 года назад

We need one on how to evade them and to cover your tracks too

@bruh-so8vp 2 года назад

@@poker4080 taxation is theft, steal from the poor and middle class pockets, and when businesses get taxed the poor and middle class will pay a second time. And after the government prints money, devaluing the money the poor and middle class has in the bank then they pay a third time

@elduce2942 2 года назад

Don’t vote democrat

@Excalibur2 2 года назад

@@elduce2942 it's crazy how the good guys have always been and forever will be your side. All bad things are caused by the other side. It's great you don't ever actually have to think about who to vote for.

@sparks1455 2 года назад

Him: Oh that makes sense Me: I have no idea of what you said.

@SommePerson 2 года назад

Same, America is odd. In the UK we don't even have taxes

@nityajoshi-wb6bt Год назад

It's not that confusing bro

@zachbarker497 2 года назад

This is accurate. This is why it would be wise for a 90% tax rate after a million dollars. "90%?! That's way too high!!" Dude how much more money do you need AFTER making a million dollars. Not just once but as your average.

@bigwilly43729 2 года назад

Idk why this dude make me feel like it’s perfectly fine that I don’t know a damn thing about money.

@wread1982 2 года назад

😂

@toric225 2 года назад

Well you don't know until you know. Just because you don't know something doesn't mean you're stupid it just means you haven't had it explained well enough to you or you misunderstood the concept. He makes you feel fine because he doesn't talk down to his alter ego in the clip but rather speaks with respect to that person.

@icy_bird5540 2 года назад

I’ve heard this explained so many times and I think this is the first time I understand what it meant

@joshacker5035 2 года назад

This is a misunderstanding. The (at least US) tax system only taxes that 22% on the money that is on or passed the ~$40,000 tax bracket. Everything less is taxed according to its bracket.

@ericsilverman1225 Год назад

'Bracket Creep' used to be a feature of our system. Thank goodness we abolished it a couple decades ago. But, the employee's concern used to be a real thing.

@Mi-Go 2 года назад

If people actually don't already know this then I have serious worry for humanity

@Resident1157 7 месяцев назад

People dont, Floyd Mayweather is a billionaire who cant read, none of this makes sense

@BAD_HOBO 2 года назад

"Congrats you're getting a raise!" Is probably something I'll never ever hear.

@TuberTugger 2 года назад

Clearly you need to become a better hobo

@mrdark9916 4 месяца назад

Then you're lazy and need to get a real job.

@Destructionconnoisseur 2 года назад

I learnt this when I was doing computer coding in 10th grade(for some simple programs). So glad I did because it’s very useful for finances and taxes in the real world, and something that many people don’t know.

@sancrosanct5070 2 года назад

Could you explain more a bit? I'd love to make projects like those as well but I wouldn't know where to start

@theexalius7947 2 года назад

@@sancrosanct5070 In programming, you're able to make apps that funnel in information for you and do calculations with little to no work. I suggest learning Python to start with. It's simple and straight to the point, while at the same time it has an infinite number of uses and an infinite number of ways to take advantage of said uses.

@randomizzer2389 2 года назад

Ive worked with people that held out on turning in some of their labor runs until the next pay period. Because sometimes when they ran too much labor for a certain week, their paychecks would be about the same or even lower because of tax brackets. So yes it does work like your 1st explanation. Unless something has changed in the last 8 years. I’m disabled now and haven’t worked in all that time.

@asleepydino 8 месяцев назад

The us has had a progressive tax system since 1862 my guy. Either those people didn't understand the tax system and were just wrong or they were under some special exception. It's possible they were trying to avoid automatic tax contributions from applying by averaging their hours worked so that they'd have the money now instead of getting a bigger tax return.

@TryinToGetbetter Год назад

Please halp a little: Let's say 22% tax bracket starts at $41k And till $40k its 12% , so we will have to pay 22% tax on $1k? Is that correct?

@brandonhughes645 2 года назад

I'm 26 years old, systems analyst and been investing and learning the markets for 2-3years and I never learnt this. I feel an absolute fool.

@odin3221 2 года назад

This is even real lol . Thats not how taxation works . You only get taxed at that rate for the money you make above the previous bracket .

@Rokomarn 2 года назад

Did you never look at your taxes or what?

@jonathanwilliam8819 2 года назад

..... You didn't graduate middle school?

@WhatTheCinnamonToastFck 2 года назад

I genuinely didn't know this. I'm not from the US though, dont know if this applies in my country.. and I'm at the bracket limit

@michaelscottspapercompany6373 2 года назад

It usually depends on the president of the US on how taxes work.

@Not_a_number_ 2 года назад

@@michaelscottspapercompany6373 🤣

@NOT_A_ROBOT 2 года назад

@@michaelscottspapercompany6373 bruh he's not from the US

@Vybez-YT 2 года назад

Where you from? It might not apply

@tylisirn 2 года назад

Almost every country with tax brackets does it like this. But check your own laws.

@marc68521 Год назад

thanks for explaining this. there are so many people that don't understand this.

@eliteroyallife Год назад

I just stayed up stressing about being in another tax bracket 😅 ….. thank you for making this informational video.

@tzhaki2354 2 года назад

You explained this in 45 seconds and my dad gave me a 45 minute lecture about this in a car ride

@raijin7707 2 года назад

Moral of the story is don't watch anything legal or complex with your dad or you will get an ear full 😂

@kevinMAG5222 2 года назад

@@raijin7707 😂😂😂

@boomer_ancle 2 года назад

After working for 7 years, I only understood this recently. Schools should totally teach the tax system and prepare the students for this.

@mongo5564 Год назад

But always remember kids, taxation is theft.

@scarpfish 8 месяцев назад

I just love these shorts videos about conversations that would never happen in real life.

@MegaShyguy2 2 года назад

Lol this video is literally me. Making 38k and up for a raise in a little bit.

@jayhaddan7927 2 года назад

Wow that sucks for you and your life

@vassscoo4469 2 года назад

@@jayhaddan7927 bruh

@scopilio13 2 года назад

well now you know you won't be loosing a whole lot of money

@georgelane6350 Год назад

Good luck for your upcoming raise :)

@JustAMulti 2 года назад

I've tried to explain this to so many people and they all look at me like I'm dumb. 🤦‍♀️

@JasonB808 2 года назад

No your not dumb, it’s what certain news media outlets tells them during elections. New taxes will take all their money. They don’t realize that it’s only rich people who make a certain amount not the average worker.

@djhudgins8412 2 года назад

Hmmm 🤔, but why do we pay taxes?

@JustAMulti 2 года назад

@@djhudgins8412 because taxes (when used correctly) are how the government pays for roads, welfare programs, libraries, police and fire staff, equipment, etc. And a whole bunch of other things. We do need taxes, the system has just become corrupt.

@djhudgins8412 2 года назад

@@JustAMulti if it's corrupted, then why pay? Yearly Income tax specifically?

@JustAMulti 2 года назад

@@djhudgins8412 hmm.. I feel like there's more than one way to answer that. The first would be, don't pay. But understand what possible consequences could follow and know in advance how you would handle them. The second would be, understanding that it's not completely corrupt. For me personally, while I disagree with the way some things are handled, I still want the fire department to show up to my house should I need it. I also feel it would be unfair to other taxpayers for me to take advantage of government paid things while not contributing to the funds used to pay for them. The other is government programs, like CPS and welfare programs. I want those programs to be available to people who need their services and if that means taking a little bit out of my paycheck to do it than I am okay with that.

@EaterOfGeese Год назад

"So it's always better to get a raise?" "Yep" "Okay, thank you for telling me. Can I still have that raise?" "Absolutely not. You're an accountant! You're fired!"

@Haunted_Hunter 9 месяцев назад

I didn't even think in the first place that a raise would raise me to the 22% bracket. But I can see how I could eventually come to that conclusion. Thanks for the clarification.

@terpenator93 2 года назад

The amount of people who don’t know this is completely sickening.

@Gunthusiest 2 года назад

Considering that salary is double the amount of what a lot of us make, this topic is completely alien

@dreamkitty 2 года назад

why? do you lack the awareness that financial literacy is not taught in schools? therefore you have to SEEK this information, if you’re even aware that this information even exists? let’s not say it’s “sickening” that people don’t know something and educate them like this man is.

@dethtour 2 года назад

@@Gunthusiest really? I live in an area full of refineries and everyone makes at least 60k a year. I do inspections so I hit 6 figures. Are most people really not making that much? I'm baffled.

@AoDAzrael 2 года назад

@@dreamkitty I don't think the comment about it being sickening is a slight against those who don't know. At least, the way I read it was a criticism on a system that allows this.

@dreamkitty 2 года назад

@@dethtour i’m assuming you don’t live in america or you’ve made $60k since your first year ever working and you live in this bubble where you don’t know that people can make less than that … otherwise i am shocked … not sure why, but just at the lack of awareness so many people have in this country. i make six figures but for me to assume that everyone is bringing in $5k a month pre-tax in this day and age would not be considerate of me. it takes education to make good money and costs money for a good education. we cannot assume everyone has access to that, especially during these times.

@kaivickers166 2 года назад

Unless you’re a single mother whose aid and child support depends on her income. I had a friend who made a deal with her boss that she would forgo all raises until they would add up to enough that it would actually benefit her.

@arakwar 2 года назад

In Quebec. Usually (there are some exceptions yes) most support are also quite progressive. So the « cutoff » doesn’t hurt that bad. It would usually still be worth it to get a raise. The few programs that have a steep cutoff would be offset by a 50cent/hour raise.

@batkat0 2 года назад

Right. From a tax bracket perspective, getting a raise is good. But when looking at assistance programs that hinge on your income, it can be extremely problematic. For example, some disabled people cannot marry without risking losing their benefits due to their spouse's income. Even though the spouse doesn't actually earn all that much.

@kaivickers166 2 года назад

@@batkat0 - That’s true, I knew someone with that issue. Good point!

@Josef_R 2 года назад

Yeah, better to fuck over an ex than to actually earn more...

@FoxInTheBasement 2 года назад

@@arakwar how are canadian system works, i doubt the american system is suddenly steep drop offs in benefits either

@KidCharlemagne. 2 года назад

If you’re pulling 40K you have bigger problems than taxes

@jcoats150 Год назад

Thank you! I must have slept through this lesson in high school!

@Justin1988Johnson 2 года назад

That’s a nice boss, any other bosses would just say ok no raise than

@brighterror6130 2 года назад

So what I clearly understood from this video was " *always get a raise* "

@SixxWolfZx 2 года назад

Haha funny numbers make brain go numb

@Lancelot0311 Год назад

I appreciate you educating people on this concept 🧠

@KimJongIl57 2 года назад

dude thank you so much for this im about to start work in like a week and this was the one question that nobody I asked could answer

@Mobcityrecords100 2 года назад

The way this guy explains stuff makes me understand

@The_Super_Poodle 2 года назад

Until you get your taxes and you realize they took A LOT more than you thought. THATS how the tax system works.

@combatwombat8581 2 года назад

Realise*

@batkat0 2 года назад

@@combatwombat8581 It's both, you noodle.

@mackinleymobley6500 2 года назад

Bro THANK you for explaining this correctly!

@alberthord9527 Год назад

Emp: Cool. I'll take the raise! Boss: Actually, you're fired. As an accountant, you not knowing that means we don't want you working for us.

@KamiKomplex504 2 года назад

Huh why did I never question this before ... It just makes sense

@fkaroundhandleit 2 года назад

I keep telling people about this type of shit, and they look at me like i am crazy.

@mattheweurt26 2 года назад

Normally I hate seeing your vids and I always think it's obvious shit everyone should know but this time.... This one right here actually taught me something, so thanks

@slandshark 2 года назад

This works part of the time. If you are on state insurance or some other program making even $1 dollar more than the program limit means you could be spending thousands more and actually losing money by getting a raise.

@lequedicatsamarge4228 2 года назад

Thing is: why didn't I know this until I was 25, but after graduating from school I knew everything about stuff I never needed afterwards?

@derekoverhage9180 2 года назад

Schools don’t prepare you for life. They think that’s the parents job. Our society has forced both parents into work and now still expects them to successfully raise a child. Our government actually went out of its way to take classes out that taught essential skills. Like automotive, wood shop, drivers Ed, cooking, on the job training. Some other class that teaches you how to care for a new born and young child.

@batkat0 2 года назад

I mean, you could always research these things? Or find someone who can explain it to you. It would be great if parents and schools could cover literally every aspect of life but it's not realistic.

@clearhelios1450 2 года назад

You should have known this way earlier. Especially since teaching taxes in schools is a common talking point. At least do some learning on your own

@FoxInTheBasement 2 года назад

@@derekoverhage9180 i mean the Florida government is currently banning Math textbooks based on emotional skills targets (like teaching ppl to be confident in math) is somehow indoctrination into LGBT and anti-white ideologies.

@jonathanwilliam8819 2 года назад

@@derekoverhage9180 maybe American schools need a fix since a I learnt this twice, middle school then they teach you again at high school, even though apparently my country's "education ranking" is lower than the US.

@lullabysorrow5746 2 года назад

When you actually get a raise, sounds like fiction.

@unclenaynay Год назад

I think the issue is that a majority of small businesses circa pre 1990s didn't have software to rely on and had people that were "good at math" doing payroll. Some of these folks would tax the entire wage at the new bracket. Hence you going into the new tax bracket actually did lower your take home to less than what you had before. This is where we have the carry over effect come into play about going into a new tax bracket can make your take home pay lower.

@RealCraftspirit 2 года назад

That kinda reminds me that im currently in this weird situation where doing overtime makes my pay marginally smaller than it should be because my current salary is only 100$ off the next bracket, so making overtime is not even worth it for me until I would get like a 2$ raise or something

@YaoFomo 2 года назад

Teach me how to now pay taxes kind sir

@Shutdownoftheday 2 года назад

😂😂😂

@Infinitynous-gg6vs 2 года назад

You hand over your money and time to the government maybe even a small part of your soul

@jayhaddan7927 2 года назад

You can’t pay taxes on stupid my friend

@marcosassari5603 2 года назад

Become a billionare.

@shepherds_grandma2921 2 года назад

Always so clear!

@나와안 6 месяцев назад

i thought he gonna said "How did you know this?" "I follow humphrey!"

@thatxmas 2 года назад

There are some humps where if you're getting money from government programs, like housing or food assistance, where that $1 raise results in a loss of more than $1 in benefits.

@jpest17 2 года назад

It's not always better to get a raise, you're doing more work for diminishing returns.

@darkwolfe6986 Год назад

That's the reason some of my coworkers refuse to work overtime, they think it will push them into a higher bracket making them lose money instead of making money. They just won't listen or learn 😩

@ari3lz3pp 6 месяцев назад

Well my husband started to work more OT for "higher pay" and we legit make the same or less because the income tax in CA on the bracket and OT and commission too is so high that we even put but he has more work than before. We get taxed about $40k every year. Income tax alone. We don't have a new car or a home of our own. We cannot afford to. We barely have any savings sometimes none at all. I homeschool our kids, but we have to pay taxes also to the school district....

@ari3lz3pp 6 месяцев назад

So we see it happen personally.

@LIBERTY0RDEATH 8 месяцев назад

I definitely misunderstood this and I think alot of Americans do thanks for informing me

@aranduyo4597 2 года назад

"Please talk to a competent tax advisor not just a confident one"

@ari3lz3pp 6 месяцев назад

This is advice for pretty much anything. Confidence without competence is only possibly useful in personal emergent scenarios. Facing a sudden threat and using that bravado to maybe get out of it. But even still, most times confidence without skill is going to end up in bad places. Unfortunately most employees seem to be confident and not competent anymore.

@vaccino3359 2 года назад

Damn, this boss is an angel.

@beccaleigh7744 4 месяца назад

This isn't why people reject raises. It's because assistance benefits are often NOT organized progressively. If you lose your housing or healthcare after getting a raise, you can indeed lose money. Which is fk'd up.

@Headhunter1234256 6 месяцев назад

While taxes will not cause you to make less with a raise, loss of government benefits can.

@afox1689 Год назад

Plot twist: he works in a bank and his raise was immediately revoked

@danpalu2308 2 года назад

Meanwhile in Denmark: Lowest tax bracket 46%

@ari3lz3pp 6 месяцев назад

Is Denmark also the place where they put their kids in death capsules and what rights and freedoms do they allow their people? I guarantee they don't just let anyone in if they are a successful and safe country.

@ryanseay2835 6 месяцев назад

The fact that it’s often misunderstood shows corruption and a flaw in the system

@LedZeppeli 6 месяцев назад

It is insane how often people misunderstand this. THOUGH if you’re in income adjusted housing getting a raise can push you above the limit you could end up only earning an extra $120 a month but have to move and live somewhere that’s like $500 a month more expensive.

@aza5871 2 года назад

Inaccurate, the boss will be happy if he rejects the raise

@alfredobanuelos4730 2 года назад

You missed the point because you were focused on being clever.

@aza5871 2 года назад

@@alfredobanuelos4730 i know i was joking

@highoctanegames 2 года назад

"Its clearly misunderstood" Bro i don't understand shit on any side 😭

@aarontcagle 2 года назад

What isn’t misunderstood is when you go into a higher bracket and don’t get help with health insurance as a result. That’s about 5k a year for me… I once asked for a salary reduction for this reason.

@cheezeofages 2 года назад

And yet there's a large section of politicians that campaign on the idea that the tax system works the incorrect way stated here and tax increases to higher brackets keep you in lower ones.

@mrmajikjr Год назад

And even then, the standard deduction of $12950 means you'd only be taxed on $28,050 of your income.

@iTsBlue2 2 года назад

So I make 80k a year and I'm paying 22%

@jjgalletta66 2 года назад

According to this video, you are only taxed at the higher rate on the money you make over $40,546. I’m not sure how accurate this is. Better call your tax advisor for the real story.

@timothy098-b4f 2 года назад

Nope. You pay 12% of $40,546 and 22% of $39,454. That’s a total of $13,535 in taxes, which means you’re paying 17%. That’s the whole point of this video.

@WillemvanderPijl 2 года назад

Unless you live in the Netherlands and being paid more means. No compensations, no rent support, no child support.

@buttersstotch2014 2 года назад

So glad I was forced to learn trig and calc in high school and yet never learned about anything like this 🤦🏼‍♂️

@nityajoshi-wb6bt Год назад

If you want to learn taxation then you should apply for uk ACCA course Sorry for bad English

@SwrveYT 2 года назад

12% Tax on $40,500?!? That’s so low🥴

@Funnyfish458 2 года назад

Not really

@user-nb8yt2il2r 2 года назад

What kind of socialist shithole do you live in where 1 in 10 dollars you earn gets stolen?

@danfernandogaming1851 2 года назад

@@user-nb8yt2il2r honestly

@jersonjero7312 2 года назад

@@user-nb8yt2il2r In India, anything more than around $20,000 is taxed at 30%

@killakam123321 2 года назад

@@user-nb8yt2il2r lmaooo this dude lives in commieland

@jacobramage 2 года назад

Except, the fact that there is a standard deduction, and that amount depends on your filing status. If you were married filing joint, you could make up to 24k over that 40k mark and still not jump into the next bracket.

@timothy098-b4f 2 года назад

Way to miss the point.

@jacobramage 2 года назад

@@timothy098-b4f 🤷🏻‍♂️

@kenan534 2 года назад

@@timothy098-b4f The point of the video was more information on tax and getting into another bracket. bro stated more info down wyo

@jacobg8640 2 года назад

I love telling this story. Our state has a $1000 standard deduction, but if you make less than $10,000, there's a specific law that exempts you from paying any tax at all. So if you make $10000, you pay nothing, but if you make $10001, you pay 1.4% on $9001 or $126 for earning an extra dollar. Obviously this phases out as you'll eventually break even, but I was helping someone who was just 50 over the limit and it cost them 100 in taxes.