Immediate tax relief is to increase 401K to defer income or start a business even if it's not that great just to get the $50k non taxed income relief 😀
I see a lot of misunderstanding of how tax brackets work. If go from the 12% bracket to the 22%, you don't get taxed 22% of your entire income, just on the money that you earn that is in that higher bracket. For example, let's say 10% tax is from 10k to 29k, and 20% tax is on 30k-60k. You make 30k. How much do you owe in taxes? 30k at 20% should be 6,000, right? So you owe... 6k?.... nope! You owe 3,100! Of your 30k income, 29k is taxed at 10% and the additional 1k over, which falls into the higher bracket, is the only part taxed that is taxed at 20%. So you owe 2.9k from the first 29k, and then 200 off the next 1,000 dollars earned.
Dude...I make exactly 46k...funny. and guess what? I wasn't touching the 22% either last years, anyone making 46% as at least few thousands of deductions which puts you below the braket. For most people this change in bracket will barely change anything
It’s weird he doesn’t even bother to discuss the standard deduction. The first 13k or so you make won’t get taxed at all in a w2 job other than of course the social security 7.65%
As a UK resident, I'm shocked and jealous at how low US taxes are. The big discussion right now with the UK Autumn statement is how our tax brackets haven't changed in years and dragged so many people into the higher rate bracket despite the fact they're hardly living easy lives with income that's been massively eroded by inflation.
Yeah but we also get taxed on EVERY single transaction of money you make. So it’s misleading and then there’s also other types of taxes that aren’t included in this example like social security tax, state tax, medicare tax, property tax, sales tax, etc. We get taxed much more it’s just set up in a way we don’t see it all upfront.
Meanwhile ours is 20% something and upwards, and most pay 30% or more. But I don't get shot and I can afford healthcare so I'm not complainig, just mentioning it.
@@ricardoconqueso really? Because we were paying close to $25,000 quarterly and now it has gone up again. Not much of a break even when our personal taxes are combined to lower the tax burden.
Good, hopefully I won't hit the 32% any more. But too bad the Trump tax cuts will expire in 2025. Don't like the guy, know deficit spending can't continue, but I will still miss these tax savings.
If you only donate to charities for the tax deduction you never cared to begin with XD just donate the amount you would have minus the tax you would have saved and your budget will look exactly the same.
@@JAlexCarney I donated bc the tax decuction allowed me to on my income. So I took advantage of a tax break to give to charities. Which meant i was giving to the charities INSTEAD OF taxes, not for the tax break (the same expenditure either way). Can't do both. Understand now?
While any savings is good, this is hardly an inflation adjustment…
That 12% to 22% jump feels massive
I guess we know who is getting targeted
It's totally unfair to be in the same bracket of a 95k salary if you only make 45k.
@@kauigirl808you know that they only tax 22% on the amount above 45k right?
@@willzhang8782 did I not say that is unfair...😒 isn't it??
I still don’t think you’re getting it @kauigirl808
Someone making $46k already wasn't hitting the 22% tax bracket due to the standard deduction.
The standard deduction is also increasing next year
A side by side of the brackets would’ve been good to see
Agreed
Was going to comment this as well
I mean. This information is also publicly available on the IRS site via quick Google search
What are you talking about? He shows the brackets in the video.
Either I don't understand what you're asking or you don't understand how tax brackets work. Because he showed the entire thing.
Love how they say buzz words like, “inflation adjusted”
Immediate tax relief is to increase 401K to defer income or start a business even if it's not that great just to get the $50k non taxed income relief 😀
You’re joking right 😒😒😒they think this will help with inflation 😤😤thanks for the news always so informative and helpful to listen to your channel 😊😊😊
Hey now, us poors better be thankful we got anything...
I see a lot of misunderstanding of how tax brackets work.
If go from the 12% bracket to the 22%, you don't get taxed 22% of your entire income, just on the money that you earn that is in that higher bracket.
For example, let's say 10% tax is from 10k to 29k, and 20% tax is on 30k-60k.
You make 30k. How much do you owe in taxes? 30k at 20% should be 6,000, right? So you owe... 6k?.... nope! You owe 3,100!
Of your 30k income, 29k is taxed at 10% and the additional 1k over, which falls into the higher bracket, is the only part taxed that is taxed at 20%. So you owe 2.9k from the first 29k, and then 200 off the next 1,000 dollars earned.
What the difference? You get robbed either way.
@@maxrinehart4177somebody doesn't like paved roads 🙄
And it sounds like this is not taking into consideration the standard deduction which everyone should have to some degree too
Basically you get robbed in broad daylight
What shirt are you wearing?
They should do just a flat 10 percent tax across the board, no deductions no refunds. Easy, everyone pays their fair share. No loopholes, no BS.
Came here to say the same thing… anything above 10% feels like robbery
Dude...I make exactly 46k...funny. and guess what? I wasn't touching the 22% either last years, anyone making 46% as at least few thousands of deductions which puts you below the braket. For most people this change in bracket will barely change anything
They know. It's ineffective by decision.
They should make student loan repayment deductible at all income levels at this point……
As long as they do the same with business loans sure
It’s weird he doesn’t even bother to discuss the standard deduction. The first 13k or so you make won’t get taxed at all in a w2 job other than of course the social security 7.65%
As a UK resident, I'm shocked and jealous at how low US taxes are. The big discussion right now with the UK Autumn statement is how our tax brackets haven't changed in years and dragged so many people into the higher rate bracket despite the fact they're hardly living easy lives with income that's been massively eroded by inflation.
Yeah but we also get taxed on EVERY single transaction of money you make. So it’s misleading and then there’s also other types of taxes that aren’t included in this example like social security tax, state tax, medicare tax, property tax, sales tax, etc. We get taxed much more it’s just set up in a way we don’t see it all upfront.
But yeah I’m sorry to hear that it’s also not good in the UK
Yeah bc you’re actually seeing your tax dollar in free healthcare 😅
These don't make any sense. We pay almost the same as Europe taxes and get nothing. I want mient allocated better
The government does love us! Meaning while government spending to increase
Not even close to enough inflation adjustment
Meanwhile ours is 20% something and upwards, and most pay 30% or more. But I don't get shot and I can afford healthcare so I'm not complainig, just mentioning it.
These numbers are after the standard deduction.
If you aren't taking the standard deduction, you probably aren't meaningfully impacted by the recent inflation.
glad that 32% bracket increased more :/
46k 😂😂😂😂 who tf makes that kind of money 😭
Glad now our first 12k will be taxed. Before that wasn’t touched, but now we are
You are talking about the standard deduction, that will still be around.
Thanks for the extra $200 bucks 🤦🏽♂️🤷🏽♂️
Not helpful for small business owners.
SBOs have a million different tax advantages.
@@ricardoconqueso really? Because we were paying close to $25,000 quarterly and now it has gone up again. Not much of a break even when our personal taxes are combined to lower the tax burden.
I wanna save way more. Make it happen nerd
For single filers
Wtf so if I make 46k in paying 22% dude I can barely survive w what they are taking now thus is bs
Only if you don't take the standard deduction, (which you can and should) and only on every taxable dollar above 46k
In 2022, I made $700,000.00. Anticipated income in 2024 will go up. No welfare for me!!!
Thanks for the full tank of gas joe Biden! Now give Ukraine another 100billion. 🙄
100 billion divided evenly among all 300 million Americans is $333, congratulations now you have 2 tanks of gas lol
Good, hopefully I won't hit the 32% any more. But too bad the Trump tax cuts will expire in 2025. Don't like the guy, know deficit spending can't continue, but I will still miss these tax savings.
Why does it matter if you hit the next bracket? The system is progressive. No increase in income ever results in less net pay.
What a joke and insult to the American taxpayer.
I donate to charities but can't deduct any of it.
Bye bye, charities. Sorry
If you only donate to charities for the tax deduction you never cared to begin with XD
just donate the amount you would have minus the tax you would have saved and your budget will look exactly the same.
@@JAlexCarney
I donated bc the tax decuction allowed me to on my income. So I took advantage of a tax break to give to charities. Which meant i was giving to the charities INSTEAD OF taxes, not for the tax break (the same expenditure either way). Can't do both. Understand now?
lol Bidenomics hard at work.
Trump pushed this idiotic tax reform