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Playlist Finance: Tax 52 videos

0
Finance: What Do You Need to Retire?
209 Views

What do you need to retire? Retirement - think: 401k, pension fund, IRA, roth IRA, etc. All of these savings socked away while you worked hard are...

1
Finance: How to Stay Rich
91 Views

How do you stay rich after you...get rich? The focus: index funds, mutual funds, way more stocks than bonds. Three words: don't be stupid.

2
Finance: What is Par Value?
113 Views

What is par value? The notional value of a stock or bond before an offering takes place. When a company is started, founders come up with a par val...

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Finance: What is a Consumption Tax? 10 Views


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Description:

What is a Consumption Tax? A consumption tax is one that is charged at the time of purchase for a product or service. Consumption taxes can include sales tax, value added tax, excise tax, import tax, and other taxes government wishes to charge at a point of sale.

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Transcript

00:00

Finance a la shmoop, what is a consumption tax? Ah consumption wasn't that a [Woman coughs up a dolphin]

00:09

disease in the 17th century like you know your lungs filled up with water, [Woman banging her chest]

00:12

couldn't be a tax on that... Hmm, like how would they ever collect. Well in fact a

00:17

consumption tax in finance land is about taxing what you consume yeah duh so

00:24

continuing from the 17th century and then 18th centuries remember that Boston

00:29

Tea Party thing, yeah that thing. Well the Brits wanted to tax American tea like a [Bags of tea leaves]

00:35

farthing per bushel or whatever the currency and measures were back then but

00:39

that was a tax per unit or per element of consumption, yeah consumption tax. Gas [Someone pouring tea out of a pot]

00:45

tax, that's a consumption tax, gas is 3 bucks [Someone filling up their car]

00:48

a gallon or so and the tax is per gallon something like 80 cents give or take in

00:54

a red state and more than that in the blue so the more gas you consume the [States shown on the map]

00:57

more tax you pay. All right consumption tax, real estate well it's usually taxed [Guy pointing at a list of consumption taxes on a whiteboard]

01:02

based on the market value of the place you just bought, buy a more expensive

01:06

house and well you'll pay a higher amount of tax so what's a non

01:10

consumption tax if all those are consumption taxes. Well income tax for

01:15

one you're not consuming anything your yearly tax bill isn't based on how much [Cup of tea is knocked out by yearly tax bill]

01:20

stuff you buy but how much dough you made. Well same with a payroll tax [Money being counted for the tax bill]

01:24

payroll tax is based on how much money someone makes at a job and the

01:29

conditions of their employment again not about the consumption of any goods or [Guy eating a burger]

01:33

service you know other than all your free time... All right well the estate tax

01:38

is another example unless Congress passes a bill the taxes are zombiefied

01:42

brethren based on the amount of brains they consume all the estate tax is based [Girl counting her money]

01:46

on income sort of definitions of income are squishy.. rather than consumption so

01:53

yeah that's kind of an iffy one. All right then again those zombies have been

01:56

dodging the IRS for a while now and you know we got to make them pay their fair [Guy in a suit looks scared of the zombies]

02:00

share let's say they foot the tax bill for the next being how about that, no but [The guy in a suit is chased away]

02:04

that's not gonna work everyone knows you know the zombies well they're a bunch of [Guy on the floor with his head cracked open]

02:08

deadbeats

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