[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:00.00,0:00:03.24,Default,,0000,0000,0000,,In order for the government to run;\Nit needs money.
Dialogue: 0,0:00:03.24,0:00:06.40,Default,,0000,0000,0000,,The government gets its money\Nby taxing its people.
Dialogue: 0,0:00:06.40,0:00:09.72,Default,,0000,0000,0000,,Taxes pay for all sorts of government\Njobs and services.
Dialogue: 0,0:00:09.72,0:00:14.19,Default,,0000,0000,0000,,Federal taxes help pay for national things\Nlike the president, congress,
Dialogue: 0,0:00:14.19,0:00:16.37,Default,,0000,0000,0000,,federal judges, and the military.
Dialogue: 0,0:00:16.37,0:00:19.98,Default,,0000,0000,0000,,State taxes pay \Nfor local roads and the governor.
Dialogue: 0,0:00:19.98,0:00:24.70,Default,,0000,0000,0000,,County and city taxes help pay\Nfor schools, fire trucks, and the police.
Dialogue: 0,0:00:24.70,0:00:29.18,Default,,0000,0000,0000,,Without taxes the government couldn't run\Nand the country would be in chaos.
Dialogue: 0,0:00:29.18,0:00:34.62,Default,,0000,0000,0000,,So, as much as we don't like paying taxes\Ndoing so is an important part of living
Dialogue: 0,0:00:34.62,0:00:35.94,Default,,0000,0000,0000,,in a society.
Dialogue: 0,0:00:35.94,0:00:40.59,Default,,0000,0000,0000,,A tax is money that the government \Ncollects in order to pay for everything
Dialogue: 0,0:00:40.59,0:00:42.23,Default,,0000,0000,0000,,that the government does.
Dialogue: 0,0:00:42.23,0:00:45.03,Default,,0000,0000,0000,,We work for money, or an income.
Dialogue: 0,0:00:45.03,0:00:48.29,Default,,0000,0000,0000,,And the government takes a portion\Nof this as a tax.
Dialogue: 0,0:00:51.85,0:00:55.75,Default,,0000,0000,0000,,Payroll withholdings are taken out\Nof an employee's paycheck
Dialogue: 0,0:00:55.75,0:00:57.59,Default,,0000,0000,0000,,every time payroll is run.
Dialogue: 0,0:00:57.59,0:01:01.04,Default,,0000,0000,0000,,There are federal, state, and sometimes\Neven local taxes.
Dialogue: 0,0:01:01.04,0:01:05.82,Default,,0000,0000,0000,,Withholding taxes are payroll taxes\Nwhere the employer withholds a percentage
Dialogue: 0,0:01:05.82,0:01:10.10,Default,,0000,0000,0000,,of the employee's income for federal,\Nstate, and local income taxes.
Dialogue: 0,0:01:10.10,0:01:14.41,Default,,0000,0000,0000,,Employer taxes are payroll taxes\Nthat are paid by the employer only.
Dialogue: 0,0:01:14.41,0:01:19.24,Default,,0000,0000,0000,,Some payroll taxes like Medicare \Nand Social Security are shared taxes
Dialogue: 0,0:01:19.24,0:01:22.43,Default,,0000,0000,0000,,that are split between the employer\Nand employee.
Dialogue: 0,0:01:22.43,0:01:26.43,Default,,0000,0000,0000,,Employers are responsible for payroll\Ntaxes for their employees;
Dialogue: 0,0:01:26.43,0:01:31.45,Default,,0000,0000,0000,,however, employers are not responsible\Nfor managing payroll taxes for contractors.
Dialogue: 0,0:01:32.96,0:01:36.96,Default,,0000,0000,0000,,How are payroll taxes going to affect\Nhow much you see on your paycheck?
Dialogue: 0,0:01:36.96,0:01:41.15,Default,,0000,0000,0000,,The amount on your paycheck before taxes\Nare taken out is gross pay.
Dialogue: 0,0:01:41.15,0:01:45.75,Default,,0000,0000,0000,,The amount after payroll taxes and other\Ndeductions like benefits is net pay,
Dialogue: 0,0:01:45.75,0:01:48.12,Default,,0000,0000,0000,,also known as take-home pay.
Dialogue: 0,0:01:48.12,0:01:52.46,Default,,0000,0000,0000,,One tax that comes out of your paycheck\Nis the social security tax.
Dialogue: 0,0:01:52.46,0:01:55.48,Default,,0000,0000,0000,,This tax is meant to help people\Nwhen they retire.
Dialogue: 0,0:01:55.48,0:01:59.13,Default,,0000,0000,0000,,Once you're old enough you can start \Ncollecting a social security check.
Dialogue: 0,0:01:59.13,0:02:03.84,Default,,0000,0000,0000,,Until then you will pay a portion and your\Nemployer will also pay into this tax.
Dialogue: 0,0:02:03.84,0:02:07.07,Default,,0000,0000,0000,,Medicare tax comes out\Nof your paycheck too.
Dialogue: 0,0:02:07.07,0:02:11.91,Default,,0000,0000,0000,,It pays to help people age 65 and over\Nwho are sick and need medical care.
Dialogue: 0,0:02:11.91,0:02:16.68,Default,,0000,0000,0000,,You will pay part and your employer\Nwill also kick some in on your behalf.
Dialogue: 0,0:02:16.68,0:02:19.86,Default,,0000,0000,0000,,In addition,\Nto the payroll taxes we talked about.
Dialogue: 0,0:02:19.86,0:02:23.32,Default,,0000,0000,0000,,Employers must pay an unemployment tax\Nfor each individual
Dialogue: 0,0:02:23.32,0:02:24.89,Default,,0000,0000,0000,,that works at the company.
Dialogue: 0,0:02:24.89,0:02:28.53,Default,,0000,0000,0000,,This is called state and federal\Nunemployment taxes.
Dialogue: 0,0:02:32.34,0:02:36.42,Default,,0000,0000,0000,,There are other taxes beside just payroll.\NSo, let's keep going.
Dialogue: 0,0:02:36.42,0:02:39.52,Default,,0000,0000,0000,,Income tax is what's called\Na progressive tax.
Dialogue: 0,0:02:39.52,0:02:43.46,Default,,0000,0000,0000,,Which means that those who make more\Nmoney pay a higher tax rate.
Dialogue: 0,0:02:43.46,0:02:47.05,Default,,0000,0000,0000,,If you make very little money, you pay\Nno income tax at all.
Dialogue: 0,0:02:47.05,0:02:51.16,Default,,0000,0000,0000,,If you make a decent amount of money,\Nyou pay a fraction of it to the government
Dialogue: 0,0:02:51.16,0:02:55.57,Default,,0000,0000,0000,,If you make a lot of money, the fraction\Nyou pay is theoretically higher.
Dialogue: 0,0:02:55.57,0:02:59.65,Default,,0000,0000,0000,,This system is designed this way\Nbecause those who have enough money
Dialogue: 0,0:02:59.65,0:03:02.66,Default,,0000,0000,0000,,not to worry about putting food\Non the table each day
Dialogue: 0,0:03:02.66,0:03:05.12,Default,,0000,0000,0000,,can afford to pay more to the government.
Dialogue: 0,0:03:06.25,0:03:10.25,Default,,0000,0000,0000,,Income taxes are a percentage of the money\Nsomeone makes on their job.
Dialogue: 0,0:03:10.25,0:03:15.18,Default,,0000,0000,0000,,There are different types of income tax\Nincluding federal, state, and local income tax.
Dialogue: 0,0:03:15.88,0:03:20.04,Default,,0000,0000,0000,,Federal rates can be anywhere\Nfrom 0% to 39.6%
Dialogue: 0,0:03:20.04,0:03:27.11,Default,,0000,0000,0000,,and state rates run from 0% to 13.3%\Nin some states people can pay over 52%
Dialogue: 0,0:03:27.11,0:03:29.52,Default,,0000,0000,0000,,of their income in income taxes alone.
Dialogue: 0,0:03:29.82,0:03:33.82,Default,,0000,0000,0000,,You report and file these taxes each year\Nby April 15.
Dialogue: 0,0:03:33.82,0:03:37.90,Default,,0000,0000,0000,,All the money you make during the year\Nis considered income.
Dialogue: 0,0:03:37.90,0:03:39.24,Default,,0000,0000,0000,,No matter how you make it.
Dialogue: 0,0:03:39.24,0:03:41.99,Default,,0000,0000,0000,,If you work at a job for wages,\Nthat's income.
Dialogue: 0,0:03:41.99,0:03:44.58,Default,,0000,0000,0000,,If you win the lottery,\Nthat's income too.
Dialogue: 0,0:03:45.10,0:03:49.78,Default,,0000,0000,0000,,If you own property like a house, then you\Nprobably have to pay property taxes.
Dialogue: 0,0:03:49.78,0:03:53.06,Default,,0000,0000,0000,,There's often a property tax\Nfrom the county and the city.
Dialogue: 0,0:03:53.06,0:03:57.18,Default,,0000,0000,0000,,Property tax is usually a percentage\Nof the current value of the house.
Dialogue: 0,0:03:57.18,0:04:01.18,Default,,0000,0000,0000,,If you own a $300,000 house \Nand the tax is 3%,
Dialogue: 0,0:04:01.18,0:04:05.38,Default,,0000,0000,0000,,then each year you have to pay \Nthe government $9,000 in taxes.
Dialogue: 0,0:04:05.38,0:04:09.96,Default,,0000,0000,0000,,These taxes are paid when you make\Na major purchase like a car or home.
Dialogue: 0,0:04:09.96,0:04:13.39,Default,,0000,0000,0000,,And again each year based on the value\Nof the item.
Dialogue: 0,0:04:13.39,0:04:17.59,Default,,0000,0000,0000,,Your home tax may be included as part\Nof your monthly mortgage payments.
Dialogue: 0,0:04:18.01,0:04:22.02,Default,,0000,0000,0000,,Sales tax is placed on all retail sales\Nin many areas.
Dialogue: 0,0:04:22.02,0:04:26.92,Default,,0000,0000,0000,,Sometime items like food or clothing\Nare exempt from sales tax in some places.
Dialogue: 0,0:04:26.92,0:04:31.02,Default,,0000,0000,0000,,Every time you buy something at a store\Nand they add on the tax at the end,
Dialogue: 0,0:04:31.02,0:04:32.56,Default,,0000,0000,0000,,that's the sales tax.
Dialogue: 0,0:04:32.56,0:04:37.14,Default,,0000,0000,0000,,Sales tax levels vary depending\Non where you shop, and what you buy.
Dialogue: 0,0:04:37.51,0:04:40.97,Default,,0000,0000,0000,,Businesses also have to pay\Nall sorts of business taxes
Dialogue: 0,0:04:40.97,0:04:43.01,Default,,0000,0000,0000,,depending on how much profit they had.
Dialogue: 0,0:04:43.01,0:04:47.01,Default,,0000,0000,0000,,And there are lots of other taxes such as\Ntariffs on imports, gift taxes,
Dialogue: 0,0:04:47.01,0:04:50.11,Default,,0000,0000,0000,,estate taxes, and unemployment taxes.
Dialogue: 0,0:04:50.64,0:04:52.76,Default,,0000,0000,0000,,If this isn't enough\Nto make your head spin
Dialogue: 0,0:04:52.76,0:04:56.84,Default,,0000,0000,0000,,don't worry, the current tax code\Nis over 4 million words long.
Dialogue: 0,0:04:56.84,0:04:58.65,Default,,0000,0000,0000,,No one is going to be reading that!
Dialogue: 0,0:04:58.65,0:05:03.57,Default,,0000,0000,0000,,This is why we depend on tax professionals\Nand tax programs to help us file our taxes
Dialogue: 0,0:05:03.57,0:05:04.77,Default,,0000,0000,0000,,each year.
Dialogue: 0,0:05:05.49,0:05:08.74,Default,,0000,0000,0000,,Here's the bottom line on understanding\Nthe U.S. Tax System.
Dialogue: 0,0:05:08.74,0:05:12.74,Default,,0000,0000,0000,,Your paycheck won't as big as you think\Nit should be after all the deductions.
Dialogue: 0,0:05:12.74,0:05:17.21,Default,,0000,0000,0000,,Your new tennis shoes won't cost you what\Nthe price tag says after sales tax is added.
Dialogue: 0,0:05:17.21,0:05:21.21,Default,,0000,0000,0000,,And that brand new car you want will cost\Nyou more than what the invoice says
Dialogue: 0,0:05:21.21,0:05:23.51,Default,,0000,0000,0000,,after you pay the state to own it.
Dialogue: 0,0:05:23.91,0:05:27.25,Default,,0000,0000,0000,,All these pieces should be considerations\Nwhen you're budgeting.
Dialogue: 0,0:05:27.25,0:05:32.00,Default,,0000,0000,0000,,When in doubt consult a tax professional\Nto help you navigate through all the laws.