How tax brackets actually work

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  • Published on:  Friday, January 18, 2019
  • There is a common misunderstanding about how tax brackets work in the US, and it’s causing us to have uninformed debates about taxes.Become a member of the Vox Video Lab! http://bit.ly/video-labWatch our video on Alexandria Ocasio-Cortez's 70% tax plan here: https://youtu.be/bWRO-M47eCYCheck out the podcast on this topic from Today Explained: https://bit.ly/2VEoEICThe TEx crew took a deep dive into Representative Alexandria Ocasio-Cortez's proposal for a marginal tax rate of 70% for top earners in America. A lot of people are upset, and even more have no idea how it works.Subscribe to our channel! http://goo.gl/0bsAjOWhen Rep. Alexandria Ocasio-Cortez proposed a 70 percent top income tax rate, many conservatives started saying Democrats wants to take away 70 percent of Americans’ hard-earned money. This is not only wrong, but it takes advantage of something Americans have long misunderstood: tax brackets. It’s time to fix that with a simple, paper-made video.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 http://www.vox.com.Watch our full video catalog: http://goo.gl/IZONyEFollow Vox on Facebook: http://goo.gl/U2g06oOr Twitter: http://goo.gl/XFrZ5H
  • Source: https://youtu.be/VJhsjUPDulw
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Comment

  • Vox

     4 months ago

    We've made a follow-up to this video, that examines the reasoning and debate around a 70% marginal tax rate: https://www.thclips.net/video/bWRO-M47eCY/video.html

  • rihardo123

     2 months ago

    oops exposing yourselves in next video

  • Hashtag

     5 months ago

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

  • Greg Bennett

     11 days ago

    I wish this had been the focus/takeaway.

  • Abbreviated Reviews

     5 months ago

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

  • Retro Gamer

     2 months ago

    they don't teach this in college either. You have to intern or read a book on your own to figure these out. Take outside class for CPA too.. Yeah wtf.

  • Wild On A Whim

     2 months ago

    Oh, it’s for a reason.... uneducated people can easily be swindled and controlled

  • Shivesh Poddar

     5 months ago

    When your animation maker went on a holdiay

  • Sido Lanters

     1 months ago

    @WTFMitten lol

  • WTFMitten

     1 months ago

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

  • Dariel Marte

     5 months ago

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

  • Nicola Worthington

     5 months ago

    I wish more people understood this. I find it astonishing how many people don’t understand this.... even otherwise well educated and well paid people.

  • Katrina Millings

     2 months ago

    @Mark W. Schumann Well, the same could be said of liberals. I mean there was no change at all to the poor in Trumps plan, but they acted like it was the end of the world because other people got to pay less.

  • Summer Daze

     4 months ago

    Lou Wok same I kind of get it but still lost

  • How to properly clean your metal computer

     5 months ago

    That’s how tax brackets work.

  • giaton peonta

     4 months ago

    @melodramatic7904 that's precisely why they should get their math right.

  • GrumpyThumper

     5 months ago

    Tax pockets*

  • Lake Edward Daily

     4 months ago

    Explaining that didn't seem very taxing at all.

  • bcblom

     4 months ago

    I see what you did there

  • Jay Brown

     4 months ago

    A pocket full of information

  • Mandeep sivia

     5 months ago

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

  • Hedel Torres

     1 months ago

    Funny.. In Canada, you hear people complain that small business gets over taxed. That's wrong.. Tax on business is much lower than personal income.. And a small business can claim internet costs, some lunches, clothes, car. While the full time employee can't normally claim any of that. It's harder on the middle, full time, working class... I have a few friends who own businesses and brag how little tax they pay.Even though it is harder on the FT working class, which I'm a member of, I'm not complaini...

  • Mandeep sivia

     4 months ago

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

  • Jessica Ferry

     5 months ago

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

  • Someone In The Comments

     3 months ago

    Way to get an informed start, Jessica! Good luck out there.

  • Gordon Reiher

     4 months ago

    Good for you! Most Americans know more about College Basketball brackets than they do about tax brackets and yet they piss and moan bout their taxes all the time.