US Progressive Tax System

26 May 2024 · 1 min

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0:38

In this brief video, the speaker clarifies how the United States federal income tax system is progressive, emphasizing that being in a particular tax bracket does not mean the entire income is taxed at that rate. Using a $50,000 income example, the speaker outlines the 2023 tax brackets: 10% on the first $11,000, 12% on income from $11,001 to $44,000, and 22% on income above $44,725. The explanation highlights that only the portion of income above each threshold is taxed at the higher marginal rate, not the whole salary. The video concludes with a promotional call‑to‑action directing viewers to the speaker’s Linktree and newsletter.

Chapters

Last year in the United States, if you made $50,000, that put you in the 22% tax bracket. But that does not mean that the amount of taxes you paid were 22% of $50,000. We have a progressive tax system. This shows the tax brackets during 2023. So from $0 to $11,000, you paid 10%. From $11,000 to $44,000, you paid 12%. You only paid 22% on the amount that was above $44,725. But don't ever be afraid to earn more money and go to my Linktree if you want my newsletter.