Ryan Daniel Moran shows his $170,000 federal tax check and breaks down his 65% total tax burden: 42% federal income tax, 16-17% payroll taxes, plus sales, state, property, and excise taxes. He paid taxes on inventory money he didn't actually have in hand, and argues the capital could have hired employees instead.
Happy tax week, everybody. Here it is right here. I'm gonna hold it up. It's backwards, but you can see a check made out to the IRS for $170,000. Make me puke in my mouth. Now, I want to give you a heads up about something. This is my check to the federal government for 170 grand. This is not my total tax bill. This is simply the tax bill from the overage of what we. From what we. We paid what we thought I would owe at the end of 2015. But nope, there's a missing $170,000 that we'll have to pay, plus interest, because the federal government does that. And this is just federal taxes. It doesn't include state taxes, sales taxes, anything like that. Now, why do I tell you this? Because we hear so much about the rich paying their fair share, about businesses paying more. So when we calculate all of this, my tax bill from 2015 is about 65% of my income. How can that be? The wealthiest 1% don't pay taxes. Nay, actually top tax rate, Federal income is 42%. I think payroll is 16 or 17. So that's 58 right there. Plus sales taxes, import taxes, there's all kinds of excise taxes. Add it all up, we're at about, oh, local taxes, state taxes, property taxes, all adds up to 65ish percent. Now, don't the rich have loopholes? Aren't there loopholes for businesses? Actually, the reason why this is so much and why we were $170,000 off what we thought we were going to pay is because there's what I call a reverse loophole with businesses. Now, the reverse loophole looks like this. If you sell physical products, if you've gotta order things in order to sell them, the IRS does not let you write that off. So at the end of 2000, at the end of any year, if you order a million dollars worth of product that you hope to sell the next year, the government makes you pay money on that inventory. So money that you haven't even made yet, in fact, money that you already spent and put into the business. So if you ordered $100,000 of inventory because you want to sell it, well, you've got to pay tax on that. So the bank account's been drained, and then you've got to pay tax on money that isn't there. So this is actually a check from my personal account because I've got to float the money to pay tax on the business because we had to invest money to stay in business. Now what could a business person do with a check for 170,000? By the way, I know what you're thinking.
If you're sitting there thinking, well, that means that he had to make a lot of money again, nay, well, yes, sort of true, I had a really good year business wise. But all of the money that on paper it says I make is tied up in that inventory is tied up in the businesses in order to help them grow. Now what could a business person do with $170,000? You know what I would like to do? Hire more people. I'd love to hire three highly paid people at 55,000 or five people at $35,000 a year. But I can't because it's going to the government. And half of this is going to go fight wars that nobody, nobody wants to be in. At least a quarter is going to go to bureaucracy just paying for the management of things like the irs. I'd love to put it back into a business or back into people. So every time you hear that the government creates jobs or the government is going to do something, just know that in order to do that it has to take money from jobs that normally would be created. And it then goes and spends that money on bureaucracy and wars and programs that don't work. And this much might go to a program that you like. The majority of it goes to something that we probably all agree on, we don't like and don't want to be a part of. So the government can't just create things out of thin air. It has to take, it has to take from what would be productive. Hiring people, investing into more products and services, creating better experiences for customers, putting into a college fund for my 10 month old daughter. Any of that would be a better use. But no, people gotta pay their fair share. It's not how it works, people. It's not how it works. The most productive and most efficient place to put money if you want to grow the economy and fix all our problems is back into the hands of people, not in the hands of greedy, out of touch politicians.
