Tax brackets and progressive taxation | Taxes | Finance & Capital Markets | Khan Academy

Created by Sal Khan.

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Finance and capital markets on Khan Academy: Benjamin Franklin (and several other writers/philosophers) tells us that "In this world nothing can be said to be certain, except death and taxes." He's right. This tutorial focus on personal income tax. Very important to watch if you ever plan on earning money (some of which the government will take for itself).

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[codylewis]

I finally get it. I was one of the people who believed that if you fall under a certain bracket, you pay that much percentage. I am glad i know better now. This video is really helpful.

[RealTimeWithNoor]

This video explains better than my law professor who graduated from harvard law school. lol. Thank you, Salman

[callumhoulden]

I was stuck for about an hour looking at videos until I saw this one and it really helped me out

[HunterHayden-yh]

I had heard the term tax brackets before but never paid much mind to it, but this video explaining it laid things out for me simply and it was easy to understand. Thank you so much for granting me some new knowledge today!

[c_o_l_m]

Wow I feel colossally stupid for not understanding this before.

[johnnyson]

I like the way you explain it. I watched numerous videos about how tax brackets work. Nothing made more since then this video.

[christo]

The person making 5k a year is still paying taxes. He's paying state taxes, corp taxes (many of the things he buys is 35% more expensive than it would otherwise be, not to mention all the tax accountants), he still pays city wage tax, and state tax. Then there's phone tax, cable tax, water tax, sales tax, tariffs on imported goods, property tax (even if he doesn't own the property, it's part of his rent), cable TV tax, gasoline tax etc It really does go on and on and on.

[pachayang]

This video is helpful. At first I really don’t know how tax income work. After watching this video I learn about how much you need to help pay.

[davisgoukler]

It was interesting to learn how your income is divided into different brackets. Instead of paying a single lump sum, your income is taxed at different rates depending on how much falls into each bracket. You only pay the higher rate on the portion of your income that exceeds the lower bracket, not on the entire amount.

[yaknightooo]

I'm studying for Quiz tomorrow...
Merci

[allenpalmer]

At the beginning when you were drawing the line, I immediately thought what the misconception is. When you explained that you’d pay 20% after the $10, 000 I had a “now I get it” moment.

[dodgermaven]

Thanks for explaining it in such simplicity Sal.

[yousifazim]

I LOVE YOU THANK YOU IM 11 YEARS OLD AND IM GETTING CLOSE TO PAYING TAXES SO THIS HELPED

[_aidid]

I have finally understood this concept of progressive taxation

[AKPebble]

The misconception mentioned is something that I have seen hotly defended by those people who believe in it. This harmful misconception not only hurts those who believe in it, but also the entirety of society as they are not working to their best extent. I urge anyone who knows the truth behind tax brackets to educate those who are misaligned in their understanding to teach them the truth.

[fyadislamnirjhor]

Thanksss!! Nice explanation of progressive tax system

[campbellblk]

I FINALLY GET IT! I've been wrapping my head on this on my homework since yesterday and now I get it! But how is this not being double taxed?

[aidendaugherty]

holy crap i feel stupid hahaha, i totally thought it was 20% on all of it lmao

[iiiteciruam]

My definition of theft is transfer of assets from one party to another without the first party receiving services or property deemed of equal value in return, and against the will of the first party, by threat, force, or trickery. Obviously you don't want to pay taxes, so that matches the definition. But do you expect services from your government without paying for them? That, in itself, is theft - stealing from the honest taxpayers.

[chazclifford]

Wow this is the best video explaining this