Who pays the lowest taxes in the US?
There's a common myth about who pays their fair share, and who doesn't.
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You might have heard that the poor in America barely pay any taxes. And if you look at a chart of how much every American pays in income taxes, that seems basically true. But income taxes are just one type of the many taxes we pay. So what happens if we add them all up? A new analysis by the economists Emmanuel Saez and Gabriel Zucman did exactly that. And it shows that the American tax system might not be as "progressive" as many people believe.
Read more about that analysis in an op-ed Saez and Zucman wrote for the New York Times: www.nytimes.com/2019/10/11/op...
All of their data, which we used to produce this video, is available on their website: taxjusticenow.org/
Their full research is presented in their book, the Triumph of Injustice: www.amazon.com/Triumph-Injust...
And if you want to watch a bunch of economists debate this research (economists got very fired up about this!), watch this video: • Would a “Wealth Tax” H...
But if you don't want to watch this long debate, Vox's Matt Yglesias explains what it's all about: www.vox.com/policy-and-politi...
Vox.com is a news website that helps you cut through the noise and understand what's really driving the events in the headlines. Check out www.vox.com.
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Why am I watching this I have a test tomorrow and I am 14 and live in the netherlands
Yea...
I ask myself the same questions.
Specerijen
Ahahaha
@@Arthurnijssen dat kan je wel zeggen. Niet geleerd voor de toets van morgen
“Anyone who has ever struggled with poverty knows how extremely expensive it is to be poor.” -James baldwin
I like this comment
Poverty is only expensive for fools and mistake makers. You are what you put into your life... Anyone can make it in america if theyre smart. Dont give in to the lies
@@dissolutevoid No
@@dissolutevoid "mistake makers" 😂😂😂😂
@@dissolutevoid what if you have nothing at all in life? Isn't your goal harder to achieve comparing to people who are born in upper middle class to the richest which are going to be richer and richer. Think deeply before putting out ur comment.
You touched on this a little but until you actually experience it... The working poor are often cheated out of fair wages. Between a perpetually lowering purchase power minimum wage and employers not providing benefits the tiny paychecks pay the same utility rates to heat/cool poorly insulated, high priced rentals they will never own. Tiny paychecks mean bills often aren't paid in full on time. Translate that to low credit scores which then make them pay significantly more for many things. In that situation, usery tends to happen when purchasing anything on credit. I'd say the working poor pick up the tab so many employers can be in the upper income tiers.
Maybe we need lower cost options for decent living accommodations. Search Japanese micro apartments. Stepping stones so people can afford to live while they try to advance. Apartments like those would not be permitted in the states.
Japan is a small island compared to the U.S. if we had Texas built up like that, everyone in the U.S could fit there.
@@Josh-oh2zq . Brilliant... punish the lower classes by throwing them in a 6*6 box with no windows when there is so much land available in the US and while the wealthy continue to live their best life at the expense of the lower classes. What a disgrace!
@@MrSupernova111 options to live below your means and get ahead is the enemy?
@@Josh-oh2zq . The "means" that the wealthy dictate?
10% off $10,000 hurts a lot more than 20% off $1,000,000
not only that but once you make over 539,900$ you pay 162,718$ Plus 37% of your income that's why rich people invest in property real-estate so they can get what's called depreciation that ovetime is money they can get tax free and there is a lot that goes into it but if you have a apartment building that is worth over 100Million$ and over the course of 10 years you got between all of your investments 40Million in Depreciation you could refinance your business take out 40Million dollars (TAX FREE) and still own everything and now you have 40 million
If you're only making $10,000, you aren't paying income tax. Since I've been retired, my SS income has been ~$15,000 and I haven't owed any federal or state income tax for the last 10 years.
@@marpop4056 based
You clearly don't understand money, or percentages.
@@DoremiFasolatido1979 if you're poor, every penny hurts. If you're rich, not so much.
It’s almost like it’s expensive to be poor and cheap to be rich.
Let's keep it that way...
EXACTLY!! I notice it in things me and my family do. So for instance, I get used tires because I can’t afford new tires. Since they’re used I have to get them more often. If I got new ones they’d cost less than I spend on constantly getting new tires. I try to save up for new tires all the time. But random expenses always get in the way and the priority moves to those things. And don’t get me started on student loans 😭😂. Trying to get myself out of this predicament but it’s a hard climb.
@Noiseless Sounds If you mean poor by Luxembourger standards then yes. If by worldly standards no.
that's how capitalism works ma man
@@luxembourgishempire2826 >Luxembourg >Empire pick one greetings from a friendly neighbor :)
Only in America can you hear people complaining that those who struggle with basic things such as food or shelter aren't paying their fair share of taxes.
Well if you are honest with yourself it is true. Rather than being an asset to the tax system in America they are on social programs which increases government spending. That said I think welfare should only go to the disabled who have trouble find work or cannot work. I know many people who have had children/more children partially because they would get an increase in their benefits from the government. Not sure what is the best way to solve this problem as you can't just leave kids in property when it wasn't their fault.
Yes because only America is just. You think you deserve more if you do less? That is unjust.
@@dr.martinlroberts1908 Tell that to AOC and the Socialists. They want to pay people who are not able or do not WANT to work.
@@dr.martinlroberts1908 The reason poor people aren't paying as much in taxes is because they literally can not afford to. Perhaps if wages weren't stagnant for 30 years and income inequality wasn't rising drastically (after accounting for inflation), then maybe they'd be able to pay more in taxes.
Yeah, it’a actually baffling.
"Why are these poor people not contributing!!" Imagine wanting to take people's life savings so that it would be "fair" to the rich...
It is scary out there, no doubt. After I got older, I saw how my mother struggled when she had to raise me. I looked back and saw that sometimes she was lucky enough to just have $100 or $200 at the end of the month in the bank. A single catastrophic event could've bankrupted her/us. She worked hard and built a home and a life for the two of us. I miss her dearly, and I'm thankful each day for what she's given me, hoping to continue a good legacy. Thanks to her, I'm better off now than I was back then when I was younger.
Instead take less from the rich
It’s worse than that. The poorest people don’t have savings. They live paycheck to paycheck, if they’re even paid at all. Taxing them more takes away from their ability to even live.
@@evilsharkey8954 They choose to live paycheck to paycheck.
@@amanawolf9166 Hopefully you learn from you mothers mistakes and don't have a kid on purpose like her until you are financially stable. Glad to see she loved you enough to build a good life for you as is a possibility for everybody in America. Since everybody is able to become rich here as long as they want to work.
This is why living in Washington feels so wrong. Lots of sales tax but no state income tax. Meanwhile, down in Oregon they charge income tax but zero sales tax. Helps balance things out in the right way.
Your explanation of tax implementations makes it appear that the purpose of tax is to somehow even things out? You are aware it's to fund the government, right?
Having lived and worked in both states I believe I prefer Washington's tax. I saw more money in my check even while earning less per hour. Food is generally not taxed either, so for the most part as long as you are primarily spending your money on needs I believe you'll have more left over.
this is why i wanna move to nevada. no state income tax, no sales tax.
@@ianciti Nevada does actually have sales tax it’s 6.8 percent state sales tax and a max of 1.5 percent on local sales tax
@@thooper4380 The governments job is to spend money raised on a multitude of things, one of the major ones being social programs which do in a way even things out
It's going to trickle down any minute now guys!
It's not going to be handed you on a platter. You got to work for it!
#. Yeah people do it, but the fact is that many americans work 40+ hours and still can’t make ends meet
Oh yeah it’s raining.
You know the poorest (employed) Americans live better than nearly everyone on earth right? "Poor" people in this country have televisions, computers, cars, smartphones etc. These things are just distant fantasies to the majority of people on this planet
@@wedeldylan aa far as I'm aware, the poorest Americans live on the streets. You've clearly never been to New York, have you?
Poor person: I bought my essentials! What did it cost? Everything
Essentials in this country include 2 TVs and an IPhone.
thomabb you are ignorant
That's pretty much definition of poor
Wait so you count a refrigerator as a luxury good you count refrigerated fresh food as a luxury good so anybody who earns blow certain income should only be allowed to eat f****** rice and beans f*** you
anon4234 to some people outside the U.S it is a luxury. People in the U.S. live in a bubble
Maybe one day, if I win the lottery and become a multimillionair and own multiple houses, most of which are empty year-round, I too will complain about how unfair the tax system is for the rich and how poor people dont contribute enough
Rich people may actually do not really want the poor people to pay more tax. If tax for poor people were risen, the rich should pay them more (so that they can at least survive)
Or, you could get rid of the victim mentality, learn new skills, start a business and not rely on 200 million to 1 odds you will win the lotto. I did not have a phone in my house until I was 14 I was so poor. Unless you are a paraplegic or have some other crippling disability you can change your future but you have to believe it’s possible. Good luck to you.
Keep in mind that LOTTERY TICKETS are a poor tax designed to give false hope to those who are unable to comprehend the fact that they are being scammed.
@@AnyFile They should but in business profit is more important than anything else to a ceo that doesnt actually go to the stores he owns his workers dont seem like people more like numbers on a spreadsheet so keeping labour costs low (wages) Increases profit which means they can give themselves bigger bonus's they probably dont think of the people who suffer because of it since they dont see them all they see is a bunch of numbers
@@briceking669 the thing is, its literally impossible for some of these people and you not having a phone until your 14 is absoultetly nothing. i am 16 and i do not have one and i am typing this on my dads work laptop
There is a difference between total tax paid and tax paid as a percentage of income
the latter matters more to the individual, while the former matters more to the government/the people using the money
Exactly
very true, once you notice that 400 rich people are paying nearly the same amount in taxes as the hundreds of millions of our poorest people, you realize the balance.
@@fabiusmaximus3382 "400 rich people are paying nearly the same amount in taxes as the hundreds of millions of our poorest people" citation needed.
@Fabius Maximus Well of course that’s the case. Those 400 rich people pay a certain percent of their yearly income, which is significantly larger than the yearly income of an average American. The fact that the 1% makes up half of our countries income tax clearly shows they are paying more than their share. Why on earth should we punish someone for being rich?
Don’t forget “charities”, like how bezos made his own charity, donated 100 mil to it, took it back because it’s still his money, then got a ton of tax refunds from “donating to charity”
crashie but hes created thousands of jobs and billions of dollars of value created. He created a business model that makes peoples lives easier. And you? Sitting here on youtube complaining about what hes doing.
@@bobbyohnio1287 ok boomer
Wildfire I bet you didn’t consider writing out that comment on your smartphone or computer was you contributing to the prosperity of ‘the rich’ who build your homes, cars and provide you with food, water and gas and most likely employ you or one of your family members
@@bobbyohnio1287 you mean exploiting people for low wages, over working them, subsidizing the middle class to pay for Healthcare and food stamps, finding tax loopholes by holding business nationalities in other countries, and the "charity" this guy is talking about, is a LITERAL scam of the US government taking OUR money. Being deceptive and shady does not mean he's smart, good, honest or has "gumption". You seriously need a reality check.
@@hismajestysacha8220 Ok boomer
I pay the lowest taxes because I commit tax fraud
big yoshi
✊😔
Beeg yosh
Hahahahahh
Looks like you're on THE LIST
This is a great place to start thinking, but it is oversimplified. Medicare and SS tax are taxes that come with a benefit. That benefit represents a much greater percentage the retirement income for poor and middle class than the rich. There is no mention of earned income credit or welfare benefits on the low end which are actually tax rebates. The rich also have more vehicles to get out of paying taxes. It's the middle class that pay the most taxes when all things are considered.
Another argument for progressive taxation is that poorer people have a lot less of their income left after basic expenses like housing, electricity, food, clothes, travel to/from work. So you could argue that for total equality (nlt equity) taxes should be set to compensate for that fact, so that everyone have the same percentage of their income left after taxes and basic spending
@@andreasnygaard4834 Or the tax should be calculate on what is left after paying for basic needs (i.g. shelter/house, food, health, etc) and what you spend to e able to work
what benefit does a 35 year old get from paying medicare and SS tax❓ im pretty sure i wont be receiving either of those things when im old. so please, explain.
this "benefit" is basically forced on you. If you are smart and active person you could use that money to ensure yourself you retirement funds. But in reality governement takes you money and then gives back some standard of money 40 years later with inflation, it is worth nothing
The problem with SS and medicare is that you cannot live on it without savings of your own. I understand the point and it is very helpful but a UBI would be much more effective for this. But I would also say that anytime a UBI has been tested it hasn’t worked very well so why don’t we try to come up with some sort or merge of both systems? Honestly I feel like everyone forgets that things don’t just have black and white answers.
Thank you for this. I've been trying to get my friends to understand this. It's not just sales tax or gas tax, it's what happens when you consider ALL TAXES together that you see the rich don't pay their share.
The 1% pay 90% of the taxes collected. Thats more than their share. When you split a pizza with a friend do you charge by the slice, just pay 1/ 2 or split based on how much cash is in your pocket? Heres a clue , work harder and smarter and earn more.
@@BG-mr5xv It's not about "fair share." It's about what's called today "equity," which is another word for redistribution of assets. Many of the people complaining the loudest are not poor. They're fairly comfortable, but they're not happy with that because they compare themselves to others who have more - never less, resulting in envy.
The united states has one of the most progressive tax codes in the world...the problem that uneducated people don't understand is that the extremely wealthy are not wealthy from INCOME but are wealthy from ASSETS. You cannot tax unrealized gains on assets until they are sold and realized which then results in captail gains ie INCOME and then at that point those same wealthy people pay taxes just like everyone else. No matter what liberal ideology on taxes someone tries to push or complain about just understand it is constitutionally illegal to tax unrealized gains and will NEVER HAPPEN.
Wrong
Lol a 5 minute Vox video isn’t something I would use to change your friends minds on the economics of taxes or poverty.
Jeff Bezos wants to know your location
Oliver Piers don’t worry he does:)
Jeff Bezos would like the keys to your location for an expensive door lock _he_ sold to you.
@@massimookissed1023 He will sell himself the key from his own stock using your money.
HAAA LOL
Does Khabib want's to know to ?
Vox: Who pays the lowest amount of taxes? Me: the one who evades them all
Very true, those kinds of loop holes really shouldn't exist.
AN-CAP intensifies
hol up
like and subscribe if you've committed tax evasion 😎
@@knightlypoleaxe2501 The problem is that there's a loop hole in every system ever invented.
I have perhaps had the unique opportunity to have lived in every economic social class, other than billionaire. It has given me a lot of perspective. We are taxed a very large portion and I have never minded. It's impossible to forget skipping meals so your kids can eat, crying wondering how you're going to pay rent and then signing up for government programs as a last ditch effort just to keep going - only to be mocked and judged that we're just to lazy to support ourselves despite the fact I had a job and made $3/hr after the cost of gas and childcare. All my experiences have taught me that one of the biggest flaws in America is that people need more kindness and compassion.
Smaller proportion and smaller portion are very very different things.
Paying the "lowest tax" and paying the lowest "percentage of your income in tax" are two very different things.
Huh?......no, it's the same thing.
@@davidcharles7106 No it isn't. 10 percent of a small number is smaller than 10 percent of a big number.
@@3506Dodge My Federal taxes were once 32%, Think on that reality and I sure did not see myself as rich, especially since I knew some actually rich people. back then. I estimate I paid 250k in just Federal taxes over the course of my life and I am 71 nowMy only income now is from my book royalties, Social Security a small VA and NSA payment. I can't even qualify to get Food Stamps either,
@@peytonquinn3095 So, no one should pay taxes because the rich figured how not to pay any taxes both legally and illegally?
It’s all proportional but progressive taxation is supposed to be off of percentage not seer number
It feels bad to even accuse poorer people that they’re not paying their fair share when they can’t afford to “share” as much in the first place
^^^ Didn't watch the video
@@carlosvasquez7755 he did but he is talking about the 10 secs they showed news where they accused the poor
Right
Stacey Grosche doesn’t matter at the end of the day it comes down to paying dollars. Poor people can’t afford to give away the same percentage as the rich and they also can’t afford to give e same amount.
@@staceygrosche6381 yes, but it's a lot easier to live on 1mil than 1 dollar. People who are poor can't afford to give the same percentage of their money as people who are rich
So, what I’m understanding is that the government is taxing me a lot
Yes
You’ve just realized ?
it's taxing everyone and the output isn't really that great
@@ivanrodriguez268 Did you see anything in the video?
You seem to have missed the point. Taxes are needed, the rich and corporations need to be paying more.
The reason Social Security caps at a certain income is because what you receive when you retire is proportional to what you put in while you were working. There is a cap on what you can receive so naturally there is a cap on what you put in.
Great point!
Children pay the least amount of taxes in every country.
Unbelievable. I say we make children work! They’ve had it to easy!
@@TheInterestingInformer well all adults were children too at one point so If that's what you think... I don't think its fair tbh..
@@TheInterestingInformer fair point... should make a kids into a popular star on internet and make moneyyy
exactly newborns don’t pay any taxes they should go into exile
If they dont earn anything and dont pay any taxes than they are paying 100% income tax.
Would love to see a sequel comparing this system to system in Canada, Europe, China and Japan etc.
This would be super interesting
I third this
I fourth this
South Korea. Because there is a key feature - preventing them from escaping to tax heavens. And there is a history lesson connected to that country aka _the law introduced by one president in the past that helped South Korea prosper while making him the most hated person in the country, but somehow not being nulled or revoked by ANY of the next presidents._
@vox
Answer: Politicians
Poor people pay a way larger percentage of their income on a loaf of bread.
Duh.
tax fraud technically is the lowest income tax guys it was a joke please stop attacking eachother
Panema Papers anyone lel
living on welfare is the lowest, since you literally live off of other peoples taxes. basically a negative tax rate
Scam religions then? Cause they can get away with defrauding taxes LEGALLY and do not have to fear getting caught and paying penalties on top of the defrauded tax :D Sadly that HAS become a business model in the US with tens of thousands of "pastors" competing for the sweet sweet tax free income and the even sweeter jets to enjoy it in... Mind you ... your local run of the mill baptist or 7DA reverend probably just makes a "so so" living and has not much in terms of wiggle room or luxury... many even only are part time preachers and have to work a real job to make a living... but the televangelists and internet ministries THEY are going for the full on scam factor and the effortless Millions...
Koolkid In socialism no one lives on welfare. Keep that in mind
Koolkid this person likes fish sticks
When you're top 401 rich guy: *Sad capitalist sounds*
Discovaria what?
Spud there’s 400 billionaires in the US, so he’s saying imagine being the richest millionaire, the 401st richest person in the nation, but not quite rich enough to attain 1% status. That was actually pretty funny btw, OP.
@@Ki-yg1ds correct me if I'm wrong but I'm pretty sure the 1% is rounded, it's not actually 1% but it's easier to say that than a decimal
grace rose I’m not going to comment here.
Lol
What happens when you include tax returns and government social programs?
You've also got to look at tax advantage, credit, and social services and what percentage of taxed income comes directly back to you
Me: **Stops paying taxes** The Goverment: "Your free trial of living has ended"
use za warudo
technically it has just begun
Just A Dio Who's A Hero For Fun The free trial ends when you turn 18. 🇺🇸
It's not free if you have to pay it 😂 This is such a contradiction 😂😂😂
if you're paying taxes it's not exactly a free trial
I never had an issue with paying my fare share, the issue I have is with government making up new ways to get my money and use it to bailout Banks and corporations.
No one should be bailed out. Ever. Let them fail.
It's socialism for the rich haha...
obama did that in 2008. trump is refusing to bailout the democrat states that failed due to covid lol
@@fender8415 Let's keep it that way
@@fender8415 think about what you said.
I’m from Vietnam, I did think that if I move on to live in the US, my income would be better off. However, the American dream is just a myth, every nation has its way to survive and live a wonderful life. Thanks to the team a lot for assisting people with the narrow-minded like me. Wish you continue to do such magnanimous videos
Interesting comparison even if it is functionally wrong to compare tax rates while shifting back and forth between income and wealth as though they are the same. Still, this presentation is more accurate than most of the ones I see. It would have been much more complete if the analysis did not stop short and it included the tax credits and other gov't outlays that offset much, most or all of the taxes paid at the low end of the spectrum. The U.S. could improve the tax system, but not until the gov't abandons the idea of supporting social objectives through the tax code with credits, offsets, and deductions. But that is another topic for another day...and this country is not prepared to have that discussion.
Rachel (Friends) first paycheck - "Who's FICA? Why's he getting all my money?"
Haha! Same thing poped in my head when they mentioned FICA.
omg. yes!
Sad thing is we really don't need it
What's that
😮😮😮😨
*AMERICAN LOGIC* : don't be poor.
clichè American logic is to not get pregnant before marriage, graduate high school, and get a job. In America that will get you to at least middle class.
@@c.i.a.932 graduate highschool and get a job will net you $12 an hour, which will be lower class bud.
@@c.i.a.932 lower class not mid
OfficialSwisher what’s your source?
@@c.i.a.932 what's your source?
I'd be curious to see what all of those bars on the graph translate to as actual dollar figures per income bracket, or as a portion of total government income. Just for the sake of having a complete picture.
This does not factor in all the stealth taxes...health care premiums and deductibles that can eat away 30 percent or more of income...same for fees charged at state and city level...cost of housing and transport is a higher percentage of income for poor middle class than rich upper middle class..
Poor people are so selfish, they want "food" and "basic human rights" DO YOU HAVE ANY IDEA HOW EXPENSIVE YACHT FUEL IS
agreed, we must systematically eliminate them for their crimes against the upperclass
Yes indeed we should cut all basic human rights from poor people..
I don't even know what a YAGHT is. ¯\_(ツ)_/¯
YACHT*
Food is not a right.
Vox: Who pays the lowest taxes in the U.S.? Me, a European: I don’t need sleep I need answers
Me too. And I think these taxes are not very high
*a European
Diegopiffa true but in America things like medical bills are substantially higher than in Europe
I disliked it due to bad grammar.
The American tax system is different from Europe.
Yes , please tell us the $ paid by each group.
Bingo… they won’t show you that cause then you’d think that the people who earn the most contribute the most. That doesn’t fit the narrative
Only Americans think, that the poor people should be taxed more.
Not all of us :(
Our government stands for the rich. So will our new president. Our system has failed us.
The rich politicians do not Americans.
That’s because the lower income get tax free benefits (sometimes in cash) which is not described here. Effectively some poor people pay negative taxes.
Yes this is extremely simplified version of how much people pay for taxes.
The poor aren’t paying their fair share of the taxes? Imagine being so cold-hearted that you would want to take money away from someone who can barely afford to eat.
@A Man Of Truth i just ordered a smartphone 😥
lol they should tax the rich and poor less tho and cut all these expensive programs
@@Destinyingamephisics taxing the rich doesnt work, since the poor end up paying through job loss and the raised prices of goods and services
@@bruh-so8vp you are misinterpreting my comment lol
@@bruh-so8vp bruh he meant cut taxes for everyone and cut some expensive programs.
This is fantastic information. I really appreciate the clarification.
Some countries get education and health paid through taxes. How would that change if education and medical expenses were added? That would probably take care of that dip in the middle.
This whole video was an uno reverse card
@Cant_Touch_This huh? I agree with most of your statement but is it not fair for the people of China and India if they're given jobs.
@Cant_Touch_This besides it's their own choices that made them rich and by no means are there choice in later parts of their career infringes human ethics .
@@MrAashutoshp97 un you do know you have to pay self employed taxes too
And this isn't even incorporating how much they actually pay because of legal loopholes and tax evasion
right?? I made less than $20K last year and paid more taxes than Donald Trump did before he was in office
@@michelleaguilar8361 He makes more money, so he has to pay more in taxes. It is likely he paid a large percentage early.
@@levijudson3561 Hahahahahaha okay bud keep believing that 👌
@@mattmieres Didn't dude's tax returns get leaked actually? Anybody here look at them
@@knes167 he only payed 750 dollars
"I don't pay taxes, & that makes me smart" - Donald J. Trump
I mean hey, if anyone had the ability to not get taxed, they'd do it. Unfortunately sometimes it can be rather smarmy how people go about it.
The animation for their parents passing away made me chuckle. 😬
Who pays the least amount of taxes Minecraft villagers
yep
Minecraft villagers are an indigenous people
@@bootmii98 last time I committed villager genocide
@@why-hf6gc Should've spared one and call it "endangered."
Wait what an idea. What if they introduce a system where you can become a village chief or smt and villagers have to pay u emeralds in taxes.
There is no bigger tax than being payed so little that you have to worry about money.
Alexandru Popescu wise words
They’re only putting their taxes in percentage. The average household income is roughly about 59k per year, the taxes paid overall (25%) would be 14k. Now the richest one percents income is around $421k per year. If we calculate according to the chart, the overall taxes paid would be roughly 130k per year. Comparing to the 14k that the poor contribute, 130k is almost 10 times more. Tell me again how unfair this is. Not to mention the richer you are, the less tax return you receive.
*cries in intern*
@@jenchrollin6035 The percentage represents the proportional sacrifice each person is making. making bill gates pay 10k isnt the same as making a poor person pay 10k. So we need to instead look at what fraction of their wealth they are sacrificing, to truly see the relative sacrifice that each party is making.
jenny W living off of 290k is much easier to do than 45k. A person towards the top generally won’t care about losing that percentage. It’s annoying, sure, but it won’t make or break them. On the opposite end, 45k is difficult to live off of just about anywhere you live and that taxes that they took is actually an issue. People really could’ve used that percentage to help them get by.
It's nice that you laid this out as you did showing percentage of income. However, the main problem with your presentation is that it is not weighted to show the comparative number of people in each category. While boosting the taxes paid by the Forbes 400 would seem to be fair, there are so few of them that it would net very little. The US debt is 6.25 trillion, National+State+Local taxes are 8.5 trillion and if you took all of the money from the Forbes 400 it would be less than 3 trillion. The people shouldering the bulk of the US taxes are the throng of wage earners in the $52,000 per year bracket.
try 31 trillion debt
Only as a percentage of their income.
Aside from the 400 richest people (there's 400 of them) the other 10 groups are all equal in size. That's what income deciles mean.
the other thing is that most major companies are registered in places like ireland or the cayman islands so they don't pay as much corporation tax
“I just have a lot of money to waste.” -Ricegum
Asian Jake Paul*
@@crumb6332 "Chinese" more specifically, cause you can't call a Canadian a American just because he lives in American Content lol
@@NativeVsColonial why not
The Non Smoker oh but white people are from Europe so if your saying we call chinese American or other Asian then we can say your an american european
@@NativeVsColonial hes vietnamese
"poor people aren't paying their fair share" bro we out here just barely scraping enough money to buy food :(
😭😭😭 Seriously get another job and stop cheating the system.
Luxembourgish Empire shut up
You should get a phone before food, or else how will you be able to comment online about your lack of food? Keep them priorities straight
@@keefn8 dude even a decent smartphone only costs about $100, and how do you suppose he gets 2+ jobs without access to the Internet to apply?
@@keefn8 boomer detected
Not sure where the 18% total income tax for the top 10% of earners came from. With Federal, State, and local is closer to 30%
in theory you are right but the rich are the one that have the most to gain form hole in the sytem and can abuse them like having there ''maine'' residence some where with realy bad income law
not only that but once you make over 539,900$ you pay 162,718$ Plus 37% of your income that's why rich people invest in property real-estate so they can get what's called depreciation that ovetime is money they can get tax free and there is a lot that goes into it but if you have a apartment building that is worth over 100Million$ and over the course of 10 years you got between all of your investments 40Million in Depreciation you could refinance your business take out 40Million dollars (TAX FREE) and still own everything and now you have 40 million
@@mraquafy Depreciation is a deferred tax. You still have to pay it when you sell or transfer the property. So you can't calculate it that way.
@@JacoDeltaco To be in the top 10% of income in the US, you need to make $135,000. I'm not sure I would consider that rich, especially if that income is supporting a large family.
@@theroarx2050 you know what I mean and if you dont I am not good enough to explain to a lost cause so I dont expect more reply but please entertain me
Adding payroll taxes into the mix is comparing apples to oranges because that's money that will be returned to you eventually when your retire. The average monthly SS check is ~$1400, and the largest check - to a millionaire or billionaire - retiring at age 66 is ~$3350 - not a very big difference. As for the Medicare tax, all payments to doctors, hospitals, etc., are the same for both rich and poor, even though the rich paid in more than the poor. As for consumption taxes, with the exception of gas, tobacco and alcohol, those are state or local taxes, so it's an unfair comparison of apples and oranges. Several states, e.g., Delaware, don't have a sales tax at all. On the other hand, some states, e.g., California have a carbon tax. Yes, that hurts the poor, and it doesn't stop the rich from flying in their private jets to Davos every year, so the carbon tax is definitely regressive.
While you can technically look at it like "payroll taxes are capped", they're really not. In 2022 you stop playing payroll taxes at $160k in income, but conveniently, your income tax jumps from 24% to 32% at $165k. You didn't cap out, the Fed just decided to take it.
yeah but the rich can afford Aflac supplemental insurance while the poor can't. Many older poor skip prescription drugs so they can pay their heating bill or buy food. If you look at what states like California pay to the federal government it's far more than the states gets back from the feds. Most of the states that get far more from the federal government then they pay in are red states with far higher percent of poor and fewer services to care for the poor.
Medicare should be 'capped,' the same as Soc. Security payments! A rich person doesn't get better medical care than a poor one, so why should they pay extra tax on potentially millions of dollars?
Ask most poor people if they want to stop the social security tax and social security. I’m betting most don’t want to lose that benefit later.
@@jammer6524 The state of California doesn't pay to the federal government, the people ( tax payers) of California pay directly to the federal government. It is also worth noting the disparity in tax donors and benefits receivers, is tied to farm subsidies and highway funds. But that opens a question who benefits from cheaper food more farmers or people living in higher density city ? Who benefits from a highway network more people in "flyover country" or people in the port cities that gain employment on the docks ? So it is kind of silly way to look at things as Tax donor and benefit recipient. As most the factors that determine that are tied to items beyond the state's control, namely things like moderate climate ( a lot of rich people got to Southern California because the weather is nice), population density, access to the coast, and if the area has natural deep water ports.
me: gets my paycheck goverment: *our paycheck*
Whoa! You're so woke!
Ussr anthem starts playing
Watermelon Ridge you’re woke
@@socaranectien1933 :)
sike
“There actually is someone in this group who might not be paying their fair share” *vox logo pops up* 1:32
Eminem's bro (?)
Sus
@@crimson9748 ur mom
@@totallyrandompersob1664 😐
@@crimson9748 ur mom sus
So the only states that have progressive taxation are states that don't charge sales tax. Alaska, Delaware, Montana, New Hampshire and Oregon.
this isn’t true. look up your state’s personal income tax rate before believing what a stranger on the internet says. myself included.
This just goes to show that there are tons of taxes, rich or poor we are all possibly paying more taxes than we need to.
The title: Who pays the lowest taxes in the US? Me: babies
Dogs
Oof
they pay their tax by being good bois
The dead?
@@chrono-glitchwaterlily8776 idk they might've paid their taxes when they were alive
As a US accountant and payroll person... The entire video I was shouting the average US person pays 20 to 30% overall in taxes out of their income... In my experience... And then we get to the end of the video and there it is.. .I felt like I I actually knew something... Go me
Ehh! A fellow accountant! You must be pro business like me.
Go you guys! I'm paying like 45% here in Denmark
I mean doesn’t the average American know that though? They tax you to make money, they tax you to spend money, they tax you to own property, they tax you to invest money. I guess it’s so complicated most people don’t really know
If you can't save your money cause you need it. The entire income after income tax gets another tax! Consumer taxes! Congratulations! Businesses pay it to the government but they businesses take it from you! While the rich don't spend much of their income, they save it or invest it, which has lower taxes (saving it has ZERO tax) than using it. They say estate taxes are a burden the middle class and the poor can't afford... But with the exemptions and deductions, the middle class is too poor to pay any estate tax. So reducing estate taxes just make the rich richer and the poor getting less help from the government! What vox shows is fairly accurate.
@@CallOfDutyProOwner yes but you have Healthcare benefits in those taxes and university benefits. We do not, if you add adverage employee benefits with deductibles and out of pocket cost, plus student loans, it is about 40-50% give or take. Some don't go to uni, and some don't use or have healthcare. So there is a much larger variance when it come to those costs.
People who don’t pay their taxes: Oh hey that’s me
The answer is simple: everyone should just get rich
I should become a billionaire to start paying less taxes.
Billionaires don't have billions in cash. It's stuck in their stock.
@@Chicodon008 Lol no it's not
@@mysticmac5431 It is. Jeff Bezoz or Warren Buffett cannot sell their stock straight away because nobody has the money to buy it.
@@mysticmac5431 Do you understand economics or the stock market?
If you become a billionaire, you would pay more tax than the poor; the only difference is you will have more money to spend.
And being poor in India, it is a pain to pay tax knowing most of it is going straight to corrupt politicians' pockets.
Here, the middle class pays the most bc govt policies appease the poor and the rich so they don't have to be taxed. Instead the middle class is the most politically moral considering patriotism is our duty and don't nudge the taxes
BPL don't pay taxes in India. I think you mean middle class?
Same here in Indonesia
Here in Kerala, the poor are much better off than in the rest of the country
As an Indonesian, I fell you man.
First time seeing any US tax breakdown and distribution. Good video.
Made me understand what I already knew. Thank you
The less money you have, the harder it is to make money.
no way, nobody had ANY idea
That’s true but unfortunately that’s just how money works, you have to cycle it around the system and get rewarded for it. This creates jobs, tax money and circulates the economy. If it was easier to make money with the less money you had then we would easily have a recession.
@@max-ol7ov A shocking number of people think DJT is some type of genius for inheriting half a billion.
*where did those results come from*
from personal experiences of my life and everyone ive known, rich or poor.@@max-ol7ov And its a fact that people rarely leave the class they are born into unless its to a poorer class.
Love that a Bernie Sanders ad played at the beginning of this video 😂
HRS Darwish same lol
Yeah
Same 😂
Same
Name one country that succeeded with socialist leader
Isn't it fun when the richest 400 complain about the poor not being taxed enough when they are not being taxed enough them selfs
You forgot “self-employment” taxes.
Taxes for having a job
These 400 controls the Congress, which will not tax their campaign donors.
Tbh I don’t think congressmen and women don’t make that much for such a high ranking government position.
@@anti-ticktickspecialforces1871 They don't
@@ooidwrioo8968 They don't make a lot in DIRECT pay, but once you add in perks, donations, and such, NOBODY in Congress is exactly going broke or likely to - and don't get me started on "book deals" and the like.
Well it is quite logical since they won't bite the hand that feeds them, I find that to be more shameful.
You mean like the way Nancy Pelosi made sure the minimum wage law didn't affect American Samoa, where he husband owns $17 million worth of Starkist tuna cannery operations?
When you find the cheater, but the cheater is the controler.......
Its like gambling, the house always win.
Gas taxes, utilities taxes, phone service tax, state lotteries (those are volunteer taxes), ..........
Wai a minute is the rich guy trying to do the club penguin dance in the thumbnail
I'm pessimistic that this will ever chance since the extremely rich have such strong lobbying power and are able to inflluence politics effectiviely.
Fire Panda Party Penguin it’s unfortunate but true 😔
that's why we have to give bernie sanders a chance to root it out :)
Bernie sanders would be the worst president in america history.
@@victorsilva-oz7rm probably not , i doubt he'd be as bad as the rest of the war criminals , since he's been against the wars .
@@victorsilva-oz7rm I hope they elect Bernie Sanders so they can see how wrong they are. Some people still think that socialism is good when in reality it is just taking from some to give to some. Bernie Sanders would be worse than the 10 worst presidents combined
Imagine paying less than 50% in taxes This meme was made by the scandinavia gang
But don't you have free health care and free college education
@@ayoubdado7927 yeah it's great!
@@ayoubdado7927 but is it really free if you are paying for it in taxes instead of directly to a school or insurance provider?
@@RumoHasIt would you rather pay 50% of your money or $60k for an education?
@@jaheemhughes6146 think that you are paying for a service that you do not deserve mostly all your life. You take classes in a school 18 years and after that you still have to pay
"Who pays the least taxes in America?" Probably children
Does this include the Earned Income Tax Credit targeted to the poorest tax payers? Or the increased Child and Dependent Care Credit?
Credits are left out of the conversation because it would be extremely damaging to their case.
As my economics teacher said "it costs more to be poor than it does to be rich"
lucky you had a moral teacher lol! my economics teacher in HS was grossly and openly conservative, he said “poor people are choosing to be poor” referring to the fact that families living under the poverty line tend to have a smart phone, and other pricy things like a computer or car. gotta love boomers.
In some respects yes, in others no. Being a low credit risk has benefits. Buying things in bulk also gets volume discounts. Etc.
How about we look at the amount the rich our giving not the percentage and it’s not even close being taxing the poor isn’t a good example of why they aren’t rich because most rich people started out there🤫
Alex Gonzales facts
"This man represents the poorest" My man has glasses. Glasses cost more than an arm & a leg here.
Mashallah tbark Allah alhamudillah inshallah better astgfrallah
He stole them 😎
@muhammad noor Convertion at it's worst
@@allahm-ast3mnlywlatstbdlny164 I think ur replying to the wrong comment, or you're in the wrong video
@@allahm-ast3mnlywlatstbdlny164 im sorry mate i dont speak chinese so could you translate it
As a person who casually commits tax evasion I think that might be me
Putting % on the Y axis instead of $ is dishonest.
This chart is missing one major piece of context: tax write-offs.
Yes! I wish they'd make an episode about that.
Very true once you include tax credits ect a huge portion of my taxes are nixed as a percentage. those same credits for the rich wouldent even be a tick up or down. its silly to include SS and medicare as well as i doubt most rich even use these programs. If i was a billionare i wouldent...
@@Lunarskuld That's because you're not a Billionaire. If you were one you would maximize your subsidy and claim full SS. That's how you got rich. Probably the rich don't even pay attention it's just something their accountant does and the accountant also puts the cheque into the bank account for them.
Communism comrade
Thank you for educating me
Well according to the New York Times it’s Donald Trump
Look up trump's tax plan he released after going into office. Im a liberal and love it. Idk why it hasnt been done yet tho so idk
No its Jeff Bazos
@deadshot be smart then 🤣🤣.
deadshot because you can get deductions and tax credits
deadshot that’s what trump did
@Vox Really great analysis but still missing an important part of the fuller picture - you should net out the benefit that each gets back from the system from those tax contributions as a proportion of their income. (i.e. schooling / social housing/ health care) I suspect you'll see the greatest burden shift to the lower middle class but hopefully more progressive for those at the very bottom end.
Was the property tax passed on to renters as a portion of their rent, considered under the property tax?
Gig economy workers that get hit with a 1099 (as independent contractors) pay 30 - 33% depending on the state laws. Payroll taxes are also usually different for part-time workers, so a company can just hire two people for half the shifts of the same job, so everyone is part-time.
news karen: WHY ISNT 45% OF THE POPULATION NOT PAYING THEIR FAIR SHARE?! gee karen, do you want more homeless then there already is?
I still wouldn't mind a less tax rate for mid class
@@loganshelton195 lord know we need it
One thing I noticed: income taxes for billionaires are smaller than for top 10%. Now that’s weird
Edward C.V r/wooosh
@@viper_7712 but no. fox news it heavily Republican, a party that pushes a similar agenda to the one outlined in this video. Republicans push for rich billionaires, and to do that they push for poorer lower classes. that comment was completely relevant. at least you got the number of o's in r/woooosh... oh wait
Imagine paying only a few percent less and lose heathcare
Our government should see this
Is Capital gains tax also included in this calculation ?
Consider this as well: If I make $500,000 a year and pay half of that in taxes, I still have plenty. If I am making $50,000 and pay half in taxes, I am struggling. If I make much less, I am starving.
Annie Mosienko It’s a good thing you aren’t taxed half your income like how it is in some European countries
@@hellohello-tp4mb the quality of life in the EU countries is way better than in the US. At least we can give birth for free, unlike in the US where you have to pay 10000$
@@MiSt3300 wish one day ill look at higher taxes and think its "free"
@@icecrocodile2536 did you not watch the video?
@Elias Håkansson tell me Elias, who earns that amount? Because unlike Sweden or Germany, the US has higher income inequality than Russia, with its corruption and oligarchs. Frankly, money isn't everything, and living standarts have much more depth to them than just the "income average". If you take Jeff Bezos's monthly income and mash it with 2 million americans, you'll get the average wage of a German. But those 2 million americans can earn $400 per month...
It’s almost like being poor means you have less money
It's almost like Fox News blatantly lied aigan.
@@lebowlmart4425 Fox. If you hear closeley, they actually said that the poor don't pay anything considerable. lol
it's almost like conservatives are choosing to ignore data and statistics again
What a horrible world we live in eh
Michael Hill aha man I’m just playing around
Well, it's me, as I don't live in the United States, so technically i cannot pay taxes in the United States
Before I even watch this video… I looked down and see that vox made it and then I click out eight seconds in because I realize that there is virtually no possibility that this will contain correct information at any point.