What is your favorite type of tax? Thanks to this video's sponsor, Mech Arena! Install Mech Arena for Free 🤖 IOS/ANDROID: clcr.me/MrBeat_MA_Aug and get a special starter pack 💥 Available only for the next 30 days. Here is the music I used for this video: trashplanetgame.bandcamp.com/album/trash-planet-ost Thanks Adrian!
@@jerkerhernback9558 Mr. Beat did an updated presidential tier list with Vlogging through History on Presidents Day 2022. th-cam.com/video/UAUg6y2UX88/w-d-xo.html
Ayy I was just about to comment about the Single Land Value Tax, then I reached the end of your video and I'm now hyped for a Mr. beat video on Georgism. Another great video Mr. Beat!
@@iammrbeat I'd hate to say it, but I'm in the same boat too. You somehow got me excited to learn about taxes. I am now also hyped to see a vid on Georgism
Some years back my husband and I got a letter from the IRS stating that we were 9 cents short in the taxes that we'd paid. They said that because the total shortfall was less than 10 cents payment was being waived. Since it cost them at least $1 to mail us that statement, we wondered why they even bothered to notify us. But it was the IRS. Go figure.
It also sucks that companies like Turbo Tax and HR Block lobbied congress to make flying taxes easier illegal, similar to how many countries in Europe do it. There they just send you a bill straight up telling you how much you owe, and you just have to mail it back with a check. Instead of you having to either figure it your self or pay someone else too do it for you.
I personally don't get why this was a big deal. Filing taxes isn't actually that hard, your tax forms are essentially step by step instructions on what to fill out and how. If you can read basic English and can count you can do it. That and filing myself is how I notify them of info they can get what I owe reduced.
I just wanted to add that here in Canada we deal with the regressive nature of excise and sales taxes by providing a tax refund equal to the average amount of tax collected from those in lower income groups. It works fairly well I’d say, and is calculated and paid out automatically once someone files.
I suppose so, but note also that a lot of low-income Canadians don't file their tax returns (because they don't earn enough to pay income tax), but that also means they miss out on refundable tax credits. I would personally like to see Canada implement a return-free tax system like they have in much of Europe and other places so that these people don't fall through the cracks.
Oh, Argentina's wealth tax was mentioned! I live there and get to explain it! This wealth tax was introduced last year and passed this year as a measure to finance government expenditures aimed at battling COVID-19. Those expenditures include things like buying vaccines, investing on labs that can make vaccines in the country, etc. This tax was progressive and only for the wealthy, as in only people with a net worth of over 200 million pesos would have to pay it, which was equivalent to 2 million US dollars back then, and supposed to be an emergency measure. Supposedly, it's a one time thing, but we'll just have to wait and see if the government tries to make it permanent.
@@TheVortexGaming The federal income tax was originally temporary. The government is too large and inefficient, which is why the federal government should be much smaller and made more budget efficient. The Armed Forces absolutely do not need a $600 billion dollar budget, and thus needs to be decreased heavily.
@@sunshineimperials1600 That's a topic I find very interesting, specially as I have a big distaste for American Imperialism and the Military Industrial Complex. However there is a logic to that madness. 600 billion dollars yearly purely for defense is complete utter overkill, that's for sure. However, 600 billion dollars that are used to generate American jobs, maintain technology development inside the US as much as possible, and protect American interests abroad, even at the expense of other countries at times. Then you start seeing the method behind the DoD's madness. Not that it makes it necessarily right.
Mr. Beat, could you make a video in which you rank taxes based on effectiveness? You could compare and contrast between the stated purpose or goal of a tax when it was initially passed vs the actual impact of a tax after it has been implemented; in other words, does the tax actually do what proponents said it would when it was proposed and passed?
You forgot 1 basic kind of tax: the poll tax, also known as a head tax. It’s basically where each person has to pay a fixed tax, say $200 a year per person, regardless of wealth, income, property, etc. It’s not used very commonly anymore, but it used to be one of the main methods of taxation.
Some American tourists seem to think we have no sales tax in the UK because when they see a piece of souvenir tat going for £9.99 and take it to the checkout, £9.99 is all they pay. Far from it, most items here have a VAT rate of 20% (though some things attract a lower 5% rate and others a 0% rate including most food items), it's just we do VAT-inclusive pricing so the price you see is the price you pay so there are no nasty surprises at the checkout. (I've been there, was visiting USA as a kid, had a $10 bill, yet my friend had to bail me out because something costing $9.99 couldn't be paid for entirely by that $10. I was hopelessly confused.)
Berkshire paid over $5 billion in federal taxes last year. “And if 800 other companies had done the same thing, no other person in the United states would have had to pay a dime,” - Warren Buffett May 4, 2024
@@Seth9809 No, it excludes the improvements on the land (e.g. a huge office or skyscraper or whatever), and so it does not discourage productive use of land, but it curbs land-banking/hoarding/speculations which drives up property price.
I know this is a tiny mistake and no one (or almost no one) noticed but @ 6:47 on the right the total price of the hat would be $10.79 not $10.80 after you add the tax.
Land Value taxes would help solve the problem of artificially low property taxes that cannot adequately fund communities. The thing is its really hard to actually have an effective LVT rate because of how progressive the tax is compared to other forms of taxation especially the income tax and consumption taxes.
@@bobbyfartz5591no it wouldn’t. Land value tax only affects those who owns lots of valuable land. Meaning land in a big city will be taxes more than land in the country side. Farmers won’t be taxes nearly as much as land lords or real estate companies.
Small correction on property tax. It is nominally based on the value of your property. While politicians talk about a bond or program costing X dollars per $100,000 of value, the calculation is a bit more complex. Every town, township, county, and state are broken up into a series of taxing districts. The taxing agency knows how much money they expect to get out of an area. Now, within that district, each property is assigned a percentage of that expected take based on valuation. for an example, taxing body A expects to get $500 from Area B which contains 10 properties. Those 10 properties represents $1,000,000 in valuation. Property C is worth $250,000 and Property D is worth $50,000. **BEWARE BEYOND THIS POINT LIES MATH** So, Property C, being 25% of the total valuation of the area would pay $125 Property D, being 5% of the total valuation of the area would pay $25 That means if everyone in that taxing area sees their property values go up by the same amount, the tax is unchanged (in the extremely unlikely case that the take remains unchanged). Likewise, if all properties go down in value (see 2008 housing crash for example) the tax rates are unchanged. The only way your property taxes go up or down based on your property changes valuation is if everyone else gets or loses value at a different rate. If you put in major upgrades to your property and it increases your value 30% while your neighbors put that off for a few years, you pay more taxes. If your house falls into disrepair and everyone else around you keep s theirs up, your taxes go down but your neighbors hate you a little more. Many people don't understand this as is shown whenever a tax increase for building bonds goes through where the politicians talk about the measure will only increase your taxes by $35 a year per $100,000 of value. If you go to the first meeting after the tax increases go into effect, there is a line of really angry homeowners complaining about it not being the $35 per $100,000 promised.
Small correction (edited to add - this is for United States)... You state "The only way your property taxes go up or down based on your property changes valuation is if everyone else gets or loses value" ... Which would only be true if all other variables are unchanged, except for valuation, and there was no assessment rate. The reason for this is that you are not making a distinction between assessed valuation and total valuation; nor, property tax limitations in which the State pays the difference to the county to cover the gap between amounts levied subject to the limit and the actual levy amount needed... Examples that would not hold true include (also assuming no changed in jurisdiction size): (1) Everyone's valuation remained unchanged or is changed by the same ten percent, regardless of direction, but commercial assessment rate decreased; result would be an increase in property tax for non-commercial properties. The assessment rate is better explained as the "burden" allocation rate, where different types of properties have a larger or smaller share of the overall property tax in relation to others. (2) There is a limit on total amount a school district can levy as a percent of assessed valuation, due to funding requirements per student before adjustments. For instance, the State covered 20% of the amount last year of that $500. This year, valuations for every property increased 10%; result would be everyone's property tax increased slightly less than 10% and the State share decreased. Many States have a per student funding requirement so all districts, regardless of wealth, received the same amount of based funding per student (adjustments exist for types of students, like special education which changes the adjusted student count/funding from the base). This is the one that results in large increases in a subsequent year when valuations increase, but the limit is not adjusted - it is not that the school district needed more money, it is just that part of the burden allocation shifted back to the local property owners from the State.
8:28 Missouri really is cheap for gas. When our family takes trips from Texas to Michigan, we stop just before we cross the border from Missouri to Illinois to avoid paying a severely high price. If anyone's around that area of I-57, I would highly recommend a visit to the Boomland.
Estate tax is easy to work around at times and really silly when used on working class people. Here in Europe there are high taxes in on estates, even if we’re talking about a $100k home. Kinda the same with inheritance tax.
Ideally an excise tax should be used to mitigate the harm from an externalized cost that has been foisted upon society. A good example is tobacco. It causes health problems but the tobacco companies do not pay for most of the damage caused by this. An excise tax not only reduces the use of the harmful item but places the cost of the harm of that item on the purchaser of it. This should also be applied to things for other negative effects like pollution, drunk driving accidents, and addiction. This tax not only places the burden on those causing it but also changes the behavior of people to cause less harm to begin with. Very efficient.
I know you used gas as an example, but my favorite KC example is the Hyvee on State Line Road, where the grocery store is in Kansas but the corresponding liquor store is across the street in Missouri
I think the estate tax is the best one. Not only will I never see it effect the money I earn, but it also discourages hoarding your money until you die. It doesn't punish me for being rich, making money or investing that money, and it encourages me to put money into the economy rather than giving it all to a child who did nothing for it but get lucky. I don't see what could be better.
It should be everyone's goal for their children to have a better life than them, the Estate Tax is just the government unnecessarily stealing money from my children
On excise taxes, an important characteristic is that, since the manufacturer is taxed when the goods are produced, the tax is set not as a percentage of the value or sale price, but per "unit" of the manufactured good. For example, per cigarette, per litre of gasoline, etc.
I don't know why the IRS can't just block certain companies' business licenses(like Amazon) until they pay the tax they would need to pay if they were based in the US.
probably because the people in charge of instituting such change are so compromised in their wealth and assets tied to those same companies. which is why we also don't have a law forbidding the politicians trading on the stock market even though they are directly effecting the value of said stocks. shit sandwich topped with more shit.
Worth mentioning: VAT paid by an intermediary in the supply chain is deducted from VAT collected when the item is sold. So while the government collects a little bit from each step in the chain, only the end user pays the full % amount.
Missed what the UK calls "National Insurance" paid allegedly to fund welfare (similar to a combination of pension and heath insurance). Paid per person based on salary, and once you have paid a certain amount per year the additional rate drops to almost nothing (with exemptions for very low income). The payments are generally split between employer and employee. So it's an additional tax for employers to the corporation tax, and additional to income tax for employees.
@@iammrbeat Well, I can live with them if they're put to build up an infrastructure for renewable sources. I'm driving my car on CNG and that's almost carbon free. More of us needs to drive on climate neutral fuels. But it's hard to find places to fill up the tank. So, if they make it easier to drive on CNG or Ethanol and more cheep to convert the cars from Gas to CNG (or ethanol), I'm okay with carbon taxes.
It's not thal well explained in the video, so I had to google it after watching. Apparently, the tax is a fixed percentage of the price of the finished good and is distributed along the production chain. So if everything is done by the same company, it will just pay the whole tax, while a production chain distributed among a couple companies will mean the amount is divided among all those companies.
Here is my two cents as an economist/public accountant... I think the VAT would be best described as a system to prevent tax evasion as the tax attaches to every item in a supply chain, increases the timing of tax collections rather than deferring until the end user purchase, and provides a better audit trail for the government. That was the objective, the impact on vertical supply chains was the consequence. However, it could be argued it is an additional burden as the remittance of tax collected is reduced by tax paid on materials integrated into resale products, and depending on the reporting requirements could be complicated and time consuming... Sales tax is only collected on the product when sold to the end user for consumption. However, most sales taxes are part of an broader "transaction tax" as "sales tax" implies goods, but services are taxed in many jurisdictions at the same, or reduced, rate.
I'm $120k in student loan debt and just started my career. I barely scratch over a 6 figure income now, am single, and get income tax of 31% in MI. What do you think about the government getting off our backs until our debts to them are partially or fully paid?
The problem with that is that just incentivizes people to drag their heels on repaying their debts. The longer they stay in debt, the less taxes they pay, so they'll pay the bare minimum, skip payments, etc. for as long as possible, so they can spend that extra money on other stuff. I'm sure that you are a decent, honest person who just wants a fair shake, but you have to consider how the greediest, laziest person you know would use your system.
Top rate in Michigan is less than 5%. Not sure how you came up with 31%, that sounds more like all your deductions combined; which could include many things besides income tax.
If those are federally subsidized loans, you can do a community-service program like Americorps for one ore two years to get a deferment on paying your taxes and get them reduced. But since most of that is federal taxes you're paying, the government won't get off your back because it's too busy subsidizing people like you who take out federal student loans. If you can get a lower interest rate from a private bank, then you should have them buy your student loans. The real problem seems to be that you paid too much for college.
I like the Fair Tax that was proposed probably 15 or 20 years ago now. It's an inclusive sales tax (included in the price of the good and service not added after) and it is only on new items or services. Meaning a new home is taxed a home previously lived in would not be. (Also on cars new is taxed used no tax). And since sales taxes are regressive there is a monthly rebate for the average amount of tax collected on necessities like food and medication.
Wealth taxes seem problematic for similar reasons as property taxes are. Some people get kicked out of their house because of property taxes. Ultra wealthy may need to liquidate assets that are important for society just to pay their wealth tax.
You could easily set up a system where any home (that you live in) that was purchased more than 10 years before your started getting Social Security has its property taxes lowered incrementally as you age, based on your income. Or those "savings" could be passed on to your heirs when you die.
Property tax is the biggest racket. You have to pony up regardless of how much income you made. Lot your job? Tough! House burned down? Tough! It’s like that Goodfellas scene “F U, pay me”.
I live in MA. If you buy a car, you pay a sales tax when you register it. Then a yearly excise tax just to own it. Both are based on the value of the vehicle.
Surprised that people in the US have to file their own income taxes. Many countries have the employer do that for them. Now I know why so many of them sound so tired whenever they need to pay their income taxes.
In the US we also have a depressingly large amount of people who have two or more employers in which none pay anything for health benefits. Which employer does the taxes and, if both, how are the deductions and change in marginal tax rates handled?
I'm from UK. Just about to start economics at college soon. 40% is the highest income tax here . However you only pay 40% on anything you earn over £50k. Love the video, good to understand more before i start college.
I couldn't tell if his "woohoo" was genuine or sarcastic. Since he's a teacher, I'm assuming that property taxes pay his salary, but every one I know hates property taxes the most cuz the valuations are always 10-30% higher than the actual value where I come from. Not far from where Mr Beat lives.
This is so interesting to me! In New Mexico the state funds schools operational budget via a formula. It's helpful, but districts still need to use bonds (paid by property taxes) for capital projects, so poor/small districts still struggle on that side of things.
What’s debatable is what is “absolutely necessary”. It’s he US seems pretty backwards when it doesn’t even have a universal healthcare system and spends way to much on defense spending that’s benefits aren’t helping a majority of Americans. Also one can debate it it’s necessary to help vulnerable populations with social security as some want to expand it while others want to cut parts of it.
@@ricardobarahona3939 That's fair. I'm pretty far right on fiscal grounds, even by American standards but it's true that Cal was a bit vague there. I take a very limited view on what and how much government should be spending. Got to get the debt under control and that means we have to cut spending on entitlement programs because it's by far the biggest chunk of the budget. But that's not politically popular for obvious reasons so I don't see it happening anytime soon.
Income Tax was introduced in the UK to pay for the war against Napoleon. It was and still is a temporary meausure, renewed every new Parliament. It was introduced because excise duties were so heavily impacted by smuggling.
Inflation is a tax, too. I'm very cool with land value taxation, severance taxes for natural resource depletion, and Pigovian taxes on pollution. The rest can go to heck.
Land value taxes have a downside too. A retired couple who bought a good house in suburbs for retirement, could not pay more taxes as the value of houses rise, but income is zero.
These are (in my opinion) the best taxes 1) Land Value Tax 2) Inheritance Tax (in theory, sadly too many loopholes) 3) Excise taxes The reasoning: The biggest source lf wealth is 1) property and 2) inhetitance. If we want everyone to have equal opportunities, we must tax that which gives people advantages, that which creates inequality. Consumption, income and corporate gain taxes slow down progress of a country and are often regressive.
An all inclusive transaction tax combined with a progressive, confiscatory inheritance/gift tax and abolition of tax exemptions. Make that the only legal tax in the nation and allow all taxing bodies to set the percentage. You might have mentioned that 2/3 of the tax payment system you mentioned applies only to the American system. Most people in OECD nations that have to file at all, fill out their taxes on a single screen, or 3 X 5 card in about 5 minutes.
Also I just learned of an interesting supreme court called Golan v. Holder, I'd love a Breifs on . It's Golan v. Holder it were they ruled that Congress has the constitutional right to remove works from the Public Domain, and that doing so dose not go against your first amendment rights.
@@iammrbeat It's fairly recent, and it's interesting case becuse it's one the few(if not the first ) Surpme court case to that deal with the the copyright clause of the Constiuion
Great video. I never knew much about the VAT living in the US, but I have noticed that being in Canada they have one (GST). It seems pretty similar to a sales tax, but it also taxes those involved in the manufacturing/creation of the products being sold. Is that right? It sounds good in theory, but it also sounds like something where companies will simply raise prices in order to offset the cost of the VAT during the manufacturing process, thus making it just a more expensive sales tax. I'm ignorant as to if that's how it works in practice, so please correct me if that's incorrect.
Theft is the involuntary confiscation of someone's money. Taxes are theft by that definition. Memberships fees are voluntary transactions, you pay to use the service. Thus they are not theft. Glad I could clear that up.
What is your favorite type of tax?
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Thanks Adrian!
Weed tax
Hello Mr. Beat
Land Value Tax! Where my fellow Georgists at?
My favorite tax is the one I don't have to pay.
Progressive income tax rate, top rate over 33.3% including a VAT on wall street. I'd choose to have this tax fund a UBI welfare program.
I have an idea. You should do a series talking about every major Economic Depression, Ressecion or Panic in US history.
I actually have it on my list of potential videos already!
@@iammrbeat OMG. You actually replied. Love your videos. Are you planning to make an update Presidents tier list anytime soon?
@@jerkerhernback9558 Mr. Beat did an updated presidential tier list with Vlogging through History on Presidents Day 2022. th-cam.com/video/UAUg6y2UX88/w-d-xo.html
Det kunde vara rätt trevligt
Finns en ständig panik i amerikanska förenta staterna.
Den får vi se sista akten på i det närmaste.
Romarrikets fall i en modern variant.
Would you mind making a follow up video about every type of tax evasion and how to do it? Asking for a friend :)
;)
Looking into tax evasion for myself first, and I suppose I might as well turn it into a video. 😄
@@iammrbeat It would be very interesting to hear an explanation of offshore tax havens in a future video
Tax evasion is illegal, but you might look into tax avoidance
When you realize mr beat is ripped af 8:31
Ahh nothing more nerdy than discussing taxes and being excited by it
NERDS UNITE
We maybe be nerds
But at least we re the most intelligent people ever😎
@@ShayNoMore1 you think you are
UNITE
@@ShayNoMore1cap
Ayy I was just about to comment about the Single Land Value Tax, then I reached the end of your video and I'm now hyped for a Mr. beat video on Georgism. Another great video Mr. Beat!
Yes! I am looking forward to it. Idk if there is any other tax that is widely supported by economists, from Milton Friedman to Paul Krugman.
ha! Well now I am more motivated to make the video. :)
@@iammrbeat Please make the video. I've been fighting hard to make the case but no one cares to see the advantages
I knew the moment i saw this video that whether or not he mentioned land value tax, the first comment was gonna be some georgist mentioning it
@@iammrbeat I'd hate to say it, but I'm in the same boat too. You somehow got me excited to learn about taxes. I am now also hyped to see a vid on Georgism
Some years back my husband and I got a letter from the IRS stating that we were 9 cents short in the taxes that we'd paid. They said that because the total shortfall was less than 10 cents payment was being waived. Since it cost them at least $1 to mail us that statement, we wondered why they even bothered to notify us. But it was the IRS. Go figure.
hahahahaha😂😂😂😂😂😂
It also sucks that companies like Turbo Tax and HR Block lobbied congress to make flying taxes easier illegal, similar to how many countries in Europe do it. There they just send you a bill straight up telling you how much you owe, and you just have to mail it back with a check. Instead of you having to either figure it your self or pay someone else too do it for you.
I honestly need to learn more about this.
@@iammrbeat I could be remembering it wrong , and missing details but this was a real case
I personally don't get why this was a big deal. Filing taxes isn't actually that hard, your tax forms are essentially step by step instructions on what to fill out and how. If you can read basic English and can count you can do it. That and filing myself is how I notify them of info they can get what I owe reduced.
Didn't realize my favorite TH-cam teacher was so buff 💪🏻08:36
The Joker: I'm crazy enough to take on Batman, but the IRS? No, thank you!
18:53 - thank you for that summary, it simplifies the whole process into 3 manageable chunks, greatly appreciated!
I just wanted to add that here in Canada we deal with the regressive nature of excise and sales taxes by providing a tax refund equal to the average amount of tax collected from those in lower income groups. It works fairly well I’d say, and is calculated and paid out automatically once someone files.
I suppose so, but note also that a lot of low-income Canadians don't file their tax returns (because they don't earn enough to pay income tax), but that also means they miss out on refundable tax credits. I would personally like to see Canada implement a return-free tax system like they have in much of Europe and other places so that these people don't fall through the cracks.
Taxes. One of the few things that can simultaneously unite us and divide so sharply.
Wooooooiiii, can't wait for the Henry George video, Land Value Tax is the one!!! Did my dissertation on it and is on my political To Do List!
I may have to read your dissertation. Seriously, is there any way you can email it to me? I will give you credit, of course.
If this video was about Taxes in Turkey, this video would be at least 12 hours long.
Now I’m curious…
I had no idea, Turkey!
Don't forget Argentina, we have like 200 taxes :p
To get a package from other country I had to pay like 5 different taxes xmx
Türkiye numba one!!!!11
Dont get me Started on German Tax Law. Its so confusing its a Tax Haven If you do the right Things.
The best kind of tax is evasion 😎
Oh snap. Wesley Snipes, is that you?
@@iammrbeat no I am State of the World and I endorse tax evasion
Based.
STOP
BASED!
Mr. Beat just made this video to cover the cost of that IRS check
THIS IS TRUE
*Jeff Bezos:* What are these "taxes" you speak of?
His income last year was $81,840. 😬
@@iammrbeat last year or last minute?
@@iammrbeat Seems legit
@@iammrbeat the reason why he pays less because most of his wealth is in shares of amazon
@@alexsayshi6782 Meaning, he owns Capital, which isn’t taxed, ProPublica exposed why exactly rich people are rich
What about the fanum tax
@@Heathshizzle you only pay those in Ohio, I hear
Was about to throw a fit about the omission of LVT. Looking forward to that video!
Oh, Argentina's wealth tax was mentioned! I live there and get to explain it!
This wealth tax was introduced last year and passed this year as a measure to finance government expenditures aimed at battling COVID-19. Those expenditures include things like buying vaccines, investing on labs that can make vaccines in the country, etc. This tax was progressive and only for the wealthy, as in only people with a net worth of over 200 million pesos would have to pay it, which was equivalent to 2 million US dollars back then, and supposed to be an emergency measure. Supposedly, it's a one time thing, but we'll just have to wait and see if the government tries to make it permanent.
Thanks for sharing that Daniel!
Isn’t there a famous quote that goes something along the lines of “there is nothing more permanent than a temporary government program” haha
@@TheVortexGaming The federal income tax was originally temporary. The government is too large and inefficient, which is why the federal government should be much smaller and made more budget efficient. The Armed Forces absolutely do not need a $600 billion dollar budget, and thus needs to be decreased heavily.
@@sunshineimperials1600 That's a topic I find very interesting, specially as I have a big distaste for American Imperialism and the Military Industrial Complex. However there is a logic to that madness.
600 billion dollars yearly purely for defense is complete utter overkill, that's for sure. However, 600 billion dollars that are used to generate American jobs, maintain technology development inside the US as much as possible, and protect American interests abroad, even at the expense of other countries at times. Then you start seeing the method behind the DoD's madness. Not that it makes it necessarily right.
I thought when people said Mr. BEAST they were talking about you but pronouncing it wrong lol.
See, you know what's up. :D
Mr. Beat, could you make a video in which you rank taxes based on effectiveness?
You could compare and contrast between the stated purpose or goal of a tax when it was initially passed vs the actual impact of a tax after it has been implemented; in other words, does the tax actually do what proponents said it would when it was proposed and passed?
You forgot 1 basic kind of tax: the poll tax, also known as a head tax. It’s basically where each person has to pay a fixed tax, say $200 a year per person, regardless of wealth, income, property, etc.
It’s not used very commonly anymore, but it used to be one of the main methods of taxation.
Happy back to school Mr. Beat! We just survived our first full week. The tiredness of the first dews days is a feeling I just can’t describe.
Hope you have a great school year!
You forgot the ever awful, "means and use" tax. Where you pay taxes on your equipment that you use to keep your business running.
That's probably the worst one! I think it's fairly rare, thankfully.
Is that outside the US? We get tax breaks for business purchases.
That is called a "business personal property tax" and most States exempt the first $X dollars, which in my State was the first $100k...
Some American tourists seem to think we have no sales tax in the UK because when they see a piece of souvenir tat going for £9.99 and take it to the checkout, £9.99 is all they pay. Far from it, most items here have a VAT rate of 20% (though some things attract a lower 5% rate and others a 0% rate including most food items), it's just we do VAT-inclusive pricing so the price you see is the price you pay so there are no nasty surprises at the checkout. (I've been there, was visiting USA as a kid, had a $10 bill, yet my friend had to bail me out because something costing $9.99 couldn't be paid for entirely by that $10. I was hopelessly confused.)
Mr. Beat is going to regret being sponsored by a video game when his students are caught playing & they use the fact that he got sponsored by them.
Berkshire paid over $5 billion in federal taxes last year.
“And if 800 other companies had done the same thing, no other person in the United states would have had to pay a dime,”
- Warren Buffett
May 4, 2024
I learnt more about real life and practicality in this one video than I have in school. LoL
Your comment means a lot!
The LVT/Single tax is the best tax. Or as Milton Friedman would put it, "The least bad tax."
haha both right and left leaning economists seem to dig the single use tax
Income tax is a joke
It sounds like a worse property tax?
@@Seth9809 No, it excludes the improvements on the land (e.g. a huge office or skyscraper or whatever), and so it does not discourage productive use of land, but it curbs land-banking/hoarding/speculations which drives up property price.
@@TheCantoneseInvestor (I’m right-wing) Doesn’t the current property tax seem more useful since it raises revenue?
Awesome video! :) Could you make a video comparing the average taxes people pay in different countries?
Holy crap...Great suggestion!
My least hated taxes are sales taxes. It’s the only one that can be somewhat avoided
Good video. Always kind of wanted to know about all the different types of taxes.
Thank you Paul. Me too 😆
I know this is a tiny mistake and no one (or almost no one) noticed but @ 6:47 on the right the total price of the hat would be $10.79 not $10.80 after you add the tax.
0:26 Petition to change the channel from mrbeat to mrbased
lol maybe that will help people not get as confused between the difference between us
Land Value taxes would help solve the problem of artificially low property taxes that cannot adequately fund communities. The thing is its really hard to actually have an effective LVT rate because of how progressive the tax is compared to other forms of taxation especially the income tax and consumption taxes.
Plus it’d also hurt all of the farmers who own a ton of land
@@bobbyfartz5591no it wouldn’t. Land value tax only affects those who owns lots of valuable land. Meaning land in a big city will be taxes more than land in the country side. Farmers won’t be taxes nearly as much as land lords or real estate companies.
I heard the name of the sponsored game and immediately my brain started going "One mecha, Two Mecha, Three Mech Arena" to the tune of Macarena
11:22 "that's a pretty effective use of language right there"
i completely didn't notice but now that you've pointed it out i can't unsee it.
Make one talking about how to fraud each one of them too pls
(asking for a friend)
Stolen comment lol
@@raghav3558 I'd never go so low as to steal the comment of someone else
I need to do some "research" first for the video. 😄
Only Mr. Beat could get a videogame company to sponsor his video about taxes 👏👏👏 bravo!!
In the UK the allowance we get before taxes is £12,499. It should be £25,000 if you asked
The LVT and Pigouvian Taxes are the best 👍👍
Only if you want to see high density buildings with small footprints.
Small correction on property tax.
It is nominally based on the value of your property. While politicians talk about a bond or program costing X dollars per $100,000 of value, the calculation is a bit more complex.
Every town, township, county, and state are broken up into a series of taxing districts. The taxing agency knows how much money they expect to get out of an area. Now, within that district, each property is assigned a percentage of that expected take based on valuation.
for an example, taxing body A expects to get $500 from Area B which contains 10 properties. Those 10 properties represents $1,000,000 in valuation. Property C is worth $250,000 and Property D is worth $50,000.
**BEWARE BEYOND THIS POINT LIES MATH**
So, Property C, being 25% of the total valuation of the area would pay $125
Property D, being 5% of the total valuation of the area would pay $25
That means if everyone in that taxing area sees their property values go up by the same amount, the tax is unchanged (in the extremely unlikely case that the take remains unchanged).
Likewise, if all properties go down in value (see 2008 housing crash for example) the tax rates are unchanged.
The only way your property taxes go up or down based on your property changes valuation is if everyone else gets or loses value at a different rate.
If you put in major upgrades to your property and it increases your value 30% while your neighbors put that off for a few years, you pay more taxes.
If your house falls into disrepair and everyone else around you keep s theirs up, your taxes go down but your neighbors hate you a little more.
Many people don't understand this as is shown whenever a tax increase for building bonds goes through where the politicians talk about the measure will only increase your taxes by $35 a year per $100,000 of value. If you go to the first meeting after the tax increases go into effect, there is a line of really angry homeowners complaining about it not being the $35 per $100,000 promised.
Small correction (edited to add - this is for United States)... You state "The only way your property taxes go up or down based on your property changes valuation is if everyone else gets or loses value" ... Which would only be true if all other variables are unchanged, except for valuation, and there was no assessment rate. The reason for this is that you are not making a distinction between assessed valuation and total valuation; nor, property tax limitations in which the State pays the difference to the county to cover the gap between amounts levied subject to the limit and the actual levy amount needed...
Examples that would not hold true include (also assuming no changed in jurisdiction size):
(1) Everyone's valuation remained unchanged or is changed by the same ten percent, regardless of direction, but commercial assessment rate decreased; result would be an increase in property tax for non-commercial properties. The assessment rate is better explained as the "burden" allocation rate, where different types of properties have a larger or smaller share of the overall property tax in relation to others.
(2) There is a limit on total amount a school district can levy as a percent of assessed valuation, due to funding requirements per student before adjustments. For instance, the State covered 20% of the amount last year of that $500. This year, valuations for every property increased 10%; result would be everyone's property tax increased slightly less than 10% and the State share decreased. Many States have a per student funding requirement so all districts, regardless of wealth, received the same amount of based funding per student (adjustments exist for types of students, like special education which changes the adjusted student count/funding from the base). This is the one that results in large increases in a subsequent year when valuations increase, but the limit is not adjusted - it is not that the school district needed more money, it is just that part of the burden allocation shifted back to the local property owners from the State.
8:28 Missouri really is cheap for gas. When our family takes trips from Texas to Michigan, we stop just before we cross the border from Missouri to Illinois to avoid paying a severely high price. If anyone's around that area of I-57, I would highly recommend a visit to the Boomland.
That's very smart of them to do so. Missouri consistently has some of the lowest prices of gas in the country.
Estate tax is easy to work around at times and really silly when used on working class people. Here in Europe there are high taxes in on estates, even if we’re talking about a $100k home. Kinda the same with inheritance tax.
16:05 is the funniest thing I've seen in a long time
Ideally an excise tax should be used to mitigate the harm from an externalized cost that has been foisted upon society. A good example is tobacco. It causes health problems but the tobacco companies do not pay for most of the damage caused by this. An excise tax not only reduces the use of the harmful item but places the cost of the harm of that item on the purchaser of it. This should also be applied to things for other negative effects like pollution, drunk driving accidents, and addiction. This tax not only places the burden on those causing it but also changes the behavior of people to cause less harm to begin with. Very efficient.
Critically underrated channel!!
Thank you for this.
Used to be against VAT simply because I didn't understand it very well, but this helped.
Also Single Land Tax/Georgism FTW!
I know you used gas as an example, but my favorite KC example is the Hyvee on State Line Road, where the grocery store is in Kansas but the corresponding liquor store is across the street in Missouri
I think the estate tax is the best one. Not only will I never see it effect the money I earn, but it also discourages hoarding your money until you die. It doesn't punish me for being rich, making money or investing that money, and it encourages me to put money into the economy rather than giving it all to a child who did nothing for it but get lucky.
I don't see what could be better.
It should be everyone's goal for their children to have a better life than them, the Estate Tax is just the government unnecessarily stealing money from my children
@@itstherealbrace6424 what kind of taxation would you prefer?
@@user-bc7cb8uu7e consumption taxes, along with a land value tax
@@user-bc7cb8uu7e no taxes is what i would propose.
On excise taxes, an important characteristic is that, since the manufacturer is taxed when the goods are produced, the tax is set not as a percentage of the value or sale price, but per "unit" of the manufactured good. For example, per cigarette, per litre of gasoline, etc.
As I stated in the video. ;)
Damn... the gas station part, When are you going to give us that arm workout tutorial, didn’t know you were so jacked 💪
Bro's helping me pass business classes ACTUALLY
I don't know why the IRS can't just block certain companies' business licenses(like Amazon) until they pay the tax they would need to pay if they were based in the US.
probably because the people in charge of instituting such change are so compromised in their wealth and assets tied to those same companies. which is why we also don't have a law forbidding the politicians trading on the stock market even though they are directly effecting the value of said stocks. shit sandwich topped with more shit.
Politics.
Worth mentioning: VAT paid by an intermediary in the supply chain is deducted from VAT collected when the item is sold. So while the government collects a little bit from each step in the chain, only the end user pays the full % amount.
Thanks, Mr. Beat.
No, thank YOU, Lunch Special.
8:30 you’re a lot bigger than I thought you were. With just your face, I thought you’d be like a Napoleon dynamite 😂
You’re quite wise coming over here to Missouri for gas, Mr. Beat.
That’s what we Kansans do when we get the chance!
Oh Harry, you know all of us Kansans near the border do it. :)
@@iammrbeat I’ve seen it happen quite a bit.
Missed what the UK calls "National Insurance" paid allegedly to fund welfare (similar to a combination of pension and heath insurance). Paid per person based on salary, and once you have paid a certain amount per year the additional rate drops to almost nothing (with exemptions for very low income). The payments are generally split between employer and employee. So it's an additional tax for employers to the corporation tax, and additional to income tax for employees.
I'm okay with taxes like the VAT, excise tax and property taxes. I don't fancy income taxes, but understand why they're needed.
Yep, right on. How do you feel about carbon taxes?
@@iammrbeat Well, I can live with them if they're put to build up an infrastructure for renewable sources. I'm driving my car on CNG and that's almost carbon free. More of us needs to drive on climate neutral fuels. But it's hard to find places to fill up the tank. So, if they make it easier to drive on CNG or Ethanol and more cheep to convert the cars from Gas to CNG (or ethanol), I'm okay with carbon taxes.
11:50 no, but a relative did work for it and already got taxed for it probably once
Great video! So sad the complexity of taxes help the rich with lawyers get around the systems
8:32 Mr Beat you are jacked!
Can anyone explain to me by VAT doesn’t encourage vertical integration? Wouldn’t that get you around a bunch of VAT?
It's not thal well explained in the video, so I had to google it after watching. Apparently, the tax is a fixed percentage of the price of the finished good and is distributed along the production chain. So if everything is done by the same company, it will just pay the whole tax, while a production chain distributed among a couple companies will mean the amount is divided among all those companies.
Here is my two cents as an economist/public accountant... I think the VAT would be best described as a system to prevent tax evasion as the tax attaches to every item in a supply chain, increases the timing of tax collections rather than deferring until the end user purchase, and provides a better audit trail for the government. That was the objective, the impact on vertical supply chains was the consequence.
However, it could be argued it is an additional burden as the remittance of tax collected is reduced by tax paid on materials integrated into resale products, and depending on the reporting requirements could be complicated and time consuming...
Sales tax is only collected on the product when sold to the end user for consumption. However, most sales taxes are part of an broader "transaction tax" as "sales tax" implies goods, but services are taxed in many jurisdictions at the same, or reduced, rate.
Mr. Beat: "Sales taxes..."
Me: *laughs in Oregon*
I'm $120k in student loan debt and just started my career. I barely scratch over a 6 figure income now, am single, and get income tax of 31% in MI. What do you think about the government getting off our backs until our debts to them are partially or fully paid?
The problem with that is that just incentivizes people to drag their heels on repaying their debts. The longer they stay in debt, the less taxes they pay, so they'll pay the bare minimum, skip payments, etc. for as long as possible, so they can spend that extra money on other stuff.
I'm sure that you are a decent, honest person who just wants a fair shake, but you have to consider how the greediest, laziest person you know would use your system.
Start your own business. You can't affect your taxes as long as someone else is paying you.
Top rate in Michigan is less than 5%. Not sure how you came up with 31%, that sounds more like all your deductions combined; which could include many things besides income tax.
If those are federally subsidized loans, you can do a community-service program like Americorps for one ore two years to get a deferment on paying your taxes and get them reduced. But since most of that is federal taxes you're paying, the government won't get off your back because it's too busy subsidizing people like you who take out federal student loans. If you can get a lower interest rate from a private bank, then you should have them buy your student loans.
The real problem seems to be that you paid too much for college.
I like the Fair Tax that was proposed probably 15 or 20 years ago now. It's an inclusive sales tax (included in the price of the good and service not added after) and it is only on new items or services. Meaning a new home is taxed a home previously lived in would not be. (Also on cars new is taxed used no tax). And since sales taxes are regressive there is a monthly rebate for the average amount of tax collected on necessities like food and medication.
mr. breast give me money
Mr. Beat intentionally paid short on his taxes so that he can do the outro for this video. I respect the hustle.
Wealth taxes seem problematic for similar reasons as property taxes are. Some people get kicked out of their house because of property taxes. Ultra wealthy may need to liquidate assets that are important for society just to pay their wealth tax.
You could easily set up a system where any home (that you live in) that was purchased more than 10 years before your started getting Social Security has its property taxes lowered incrementally as you age, based on your income. Or those "savings" could be passed on to your heirs when you die.
Property tax is the biggest racket. You have to pony up regardless of how much income you made. Lot your job? Tough! House burned down? Tough! It’s like that Goodfellas scene “F U, pay me”.
Was waiting for this day only!
8:33 Mr Beat should call himself Mr Beast bc he is so jacked
ahh yes taxes ancaps worst nightmare
Yes. Absolutely.
I live in MA. If you buy a car, you pay a sales tax when you register it. Then a yearly excise tax just to own it. Both are based on the value of the vehicle.
Looks like we’re witnessing the 🔰landpilling 🔰 of Mr. Beast.
I love the dead fury in the opening
Surprised that people in the US have to file their own income taxes. Many countries have the employer do that for them. Now I know why so many of them sound so tired whenever they need to pay their income taxes.
It's because companies popped up that make money off of people who don't have the time or can't be assed to do it themselves.
@@moblinmajorgeneral And said companies regularly lobby the gov't to keep it difficult/not allow employers to do it so they don't lose their business.
In the US we also have a depressingly large amount of people who have two or more employers in which none pay anything for health benefits. Which employer does the taxes and, if both, how are the deductions and change in marginal tax rates handled?
I'm from UK. Just about to start economics at college soon. 40% is the highest income tax here . However you only pay 40% on anything you earn over £50k. Love the video, good to understand more before i start college.
I couldn't tell if his "woohoo" was genuine or sarcastic. Since he's a teacher, I'm assuming that property taxes pay his salary, but every one I know hates property taxes the most cuz the valuations are always 10-30% higher than the actual value where I come from. Not far from where Mr Beat lives.
This is so interesting to me! In New Mexico the state funds schools operational budget via a formula. It's helpful, but districts still need to use bonds (paid by property taxes) for capital projects, so poor/small districts still struggle on that side of things.
I nominate The Rolling Stones for a The Beat Goes on video. I love those videos. Please keep them coming.
My view on taxes is Calvin Coolidge's: "Collecting more taxes than is absolutely necessary is legalized robbery." I'm super conservative on economics.
What’s debatable is what is “absolutely necessary”. It’s he US seems pretty backwards when it doesn’t even have a universal healthcare system and spends way to much on defense spending that’s benefits aren’t helping a majority of Americans. Also one can debate it it’s necessary to help vulnerable populations with social security as some want to expand it while others want to cut parts of it.
I mean, I wouldn't call myself "super conservative on economics," but I agree wholeheartedly with Coolidge's statement.
legal extortion would be a better way to describe it
@@ricardobarahona3939 That's fair. I'm pretty far right on fiscal grounds, even by American standards but it's true that Cal was a bit vague there. I take a very limited view on what and how much government should be spending. Got to get the debt under control and that means we have to cut spending on entitlement programs because it's by far the biggest chunk of the budget. But that's not politically popular for obvious reasons so I don't see it happening anytime soon.
@@sebastianc5155 Tomato, tomahto. Extortion, robbery, both are crimes.
Mr.Beat-You-Up with those arms
lol
I am proud to have evaded all of them since 2004.
I won't tell anyone. Your secret is safe here in this comment section.
@@iammrbeat Thank you Mr Beat. Very cool.
Income Tax was introduced in the UK to pay for the war against Napoleon. It was and still is a temporary meausure, renewed every new Parliament. It was introduced because excise duties were so heavily impacted by smuggling.
The best kind of tax is NO tax
;)
NEET master race
Inflation is a tax, too. I'm very cool with land value taxation, severance taxes for natural resource depletion, and Pigovian taxes on pollution. The rest can go to heck.
Henry George and Land Value Tax = Based
The world needs more Georgism
Land value taxes have a downside too. A retired couple who bought a good house in suburbs for retirement, could not pay more taxes as the value of houses rise, but income is zero.
@@CoolMan-ig1ol You’re describing property tax. Land value tax only taxes the land, not the property that stands on top of it.
So many seem to dig Georgism. It's really quite amazing.
Mr. Beat: What's your favorite tax?
Me: None
These are (in my opinion) the best taxes
1) Land Value Tax
2) Inheritance Tax (in theory, sadly too many loopholes)
3) Excise taxes
The reasoning: The biggest source lf wealth is 1) property and 2) inhetitance. If we want everyone to have equal opportunities, we must tax that which gives people advantages, that which creates inequality.
Consumption, income and corporate gain taxes slow down progress of a country and are often regressive.
What are the loopholes in inheritance tax
@@kaushikattuluri2758 Inheritance in form of things that are worth money, bit are not money itself (assets)
@@leif_____8579 I see
@@leif_____8579
What? No, these are included in the inheritance…well, actually estate…tax.
Mr. Beat out here casually committing tax evasion
GEORGISTS RISE UP
I knew many would be here. :)
An all inclusive transaction tax combined with a progressive, confiscatory inheritance/gift tax and abolition of tax exemptions. Make that the only legal tax in the nation and allow all taxing bodies to set the percentage.
You might have mentioned that 2/3 of the tax payment system you mentioned applies only to the American system. Most people in OECD nations that have to file at all, fill out their taxes on a single screen, or 3 X 5 card in about 5 minutes.
Also I just learned of an interesting supreme court called Golan v. Holder, I'd love a Breifs on . It's Golan v. Holder it were they ruled that Congress has the constitutional right to remove works from the Public Domain, and that doing so dose not go against your first amendment rights.
I hadn't heard of that one!
@@iammrbeat It's fairly recent, and it's interesting case becuse it's one the few(if not the first ) Surpme court case to that deal with the the copyright clause of the Constiuion
This sums it up easily:
"Private censorship via copyright enforcement does not implicate First Amendment concerns."
No singing. I like it.
mr breast give me money
Great video. I never knew much about the VAT living in the US, but I have noticed that being in Canada they have one (GST). It seems pretty similar to a sales tax, but it also taxes those involved in the manufacturing/creation of the products being sold. Is that right? It sounds good in theory, but it also sounds like something where companies will simply raise prices in order to offset the cost of the VAT during the manufacturing process, thus making it just a more expensive sales tax. I'm ignorant as to if that's how it works in practice, so please correct me if that's incorrect.
You would be correct. And thanks for the kind words!
Also very cool to find out you are from kcmo area. QT is the BEST convenience store I’ve been to in the country
But is it really better than Bucky's? :)
@@iammrbeat I’m dying on this hill Mr.Beat.😂
I don’t get these taxes are theft people. Would they say paying into a country club, Walmart memberships, or union dues is theft?
Taxes need a rebranding
@@iammrbeat "Society club membership fees"
Theft is the involuntary confiscation of someone's money. Taxes are theft by that definition. Memberships fees are voluntary transactions, you pay to use the service. Thus they are not theft. Glad I could clear that up.
@@objectivelycorrect8338 that’s great renounce your citizenship in that case
@@oopsiepoopsie2898 "oh you were raped? Great get rid of your genetalia if that's the case"