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Finance: Why Do Taxes Exist? 138 Views


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Description:

Why do taxes exist? Without taxes, Uncle Sam wouldn't be able to boss us around via the IRS, which uses taxpayer money to run the government. Those taxes happen at a local level as well, in the form of real estate taxes, state income taxes, and taxes on local sales, cleverly called sales tax.

Language:
English Language

Transcript

00:04

Why do taxes exist and notice we're saying that with a kind of a whiny tone

00:10

alright well someone has to pay for this and this and this and this yep there are [Hand pointing to a road, a school, a plane and a park]

00:17

a bunch of different types of taxes in each of them carries a different purpose

00:20

yeah Road taxes get paid in large part out of

00:24

the gasoline you buy you got to pay for the building and maintaining of potholes [Car drives into a pothole]

00:28

right and that makes sense if you drive a car you use the roads more so you

00:33

should pay more for its use that's like a use tax get it cleverly named if for [Price for federal tax per gallon and state tax per gallon]

00:38

when you own a home you'll pay real estate tax and for the most part that

00:41

tax is designated to pay schools all right well but like everything [Hand holding money from real estate tax to pay for schools]

00:45

government related nothing is simple in America the federal government has kind

00:49

of a matching program for schools where they pay for a portion of the education

00:54

cost based on various factors and you don't want us to get into that in the [complicated equation on chalkboard]

00:58

video all right well the largest taxes most people pay are income taxes and

01:02

those generally pay for the government to you know govern us if a couple made a

01:06

hundred grand jointly in California last year they'd pay around thirty [A couple stood together in their home]

01:09

thirty-five grand in taxes that money covers things like shiny new airplanes

01:13

to force the mean countries to play nice in the schoolyard it covers repairs to

01:18

crumbling bridges and tunnels across the country it covers public protective [Bridges crumbling]

01:22

services like police and fire department people

01:24

it covers libraries and public parks, well don't feel like you're getting your

01:28

money's worth these days if you're ever not feeling that you can always move to [Woman chased from a park by a tiger]

01:33

the Ukraine discounts on citizenship they're everywhere

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