Tax Explained with Bananas — Transcript

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1. 0:00What is tax? Monkey work at banana farm.
2. 0:03Monkey is paid leaves for work. At the
3. 0:05end of the week, monkey earns 100
4. 0:07leaves. Monkey is happy. It ain't much,
5. 0:10but it's honest work. But actually,
6. 0:12monkey only receives 80 of those leaves
7. 0:15because monkey government takes 20
8. 0:18leaves. This is tax. Basically, it's
9. 0:20leaves monkey has to pay to monkey
10. 0:22government. Every monkey pays tax in
11. 0:24some form, even if they don't
12. 0:26particularly want to.
13. 0:27>> What do you mean you get some of my
14. 0:28money? This isn't fair. Ramen didn't die
15. 0:30for this.
16. 0:31>> Why do we pay taxes? Monkey government
17. 0:33needs leaves to run the jungle. They use
18. 0:36the leaves collected from tax to fund
19. 0:38goods and services for every monkey.
20. 0:41Things like housing, hospitals, schools,
21. 0:45police,
22. 0:47firefighters,
23. 0:48military, art galleries, space programs,
24. 0:53scientific research,
25. 0:56public television, libraries, garbage
26. 1:00collection, public transport, and even
27. 1:04retirement. And monkey government can
28. 1:06collect taxes in many different ways
29. 1:08because there are many different types
30. 1:11of taxes. Income tax. Monkey government
31. 1:13takes leaves straight from monkeykey's
32. 1:16paycheck. Sales tax. Extra leaf charged
33. 1:18when monkey buys a banana. Property tax.
34. 1:21If monkey buys treehouse, monkey must
35. 1:23pay monkey government. Capital gains
36. 1:25tax. If monkey sells treehouse for more
37. 1:28leaves than he paid, monkey must pay
38. 1:31monkey government. Corporate tax. Big
39. 1:33monkey businesses also give a percentage
40. 1:36of leaves they earn. Inheritance tax.
41. 1:38Monkey pays tax on leaves monkey
42. 1:41inherits. Yay. A environmental tax.
43. 1:45Monkey corporations pay higher tax on
44. 1:47items that hurt monkeys environment.
45. 1:49Luxury tax. A tax on expensive items for
46. 1:52monkeys that can afford more than they
47. 1:54need. Tariffs. A tax on imported goods
48. 1:57from other monkey countries. Tax
49. 1:59brackets. So how much tax should monkey
50. 2:02pay? Well, it depends on how much monkey
51. 2:04earn. The more monkey earns, the more
52. 2:06tax monkey have to pay most of the time.
53. 2:09These are called tax brackets and they
54. 2:11look something like this. But monkeys
55. 2:13make a very common mistake when looking
56. 2:15at tax brackets. If monkey make 100,000
57. 2:18leaves, they are taxed 22% or 22,000
58. 2:22leaves. Right? Wrong. The first 10,000
59. 2:26leaves monkey earns, monkey pays zero
60. 2:29tax. The next 40,000 leaves monkey
61. 2:31earns, monkey pays 12% tax or 4,800
62. 2:36leaves. The last 50,000 leaves monkey
63. 2:38earns, monkey pays 22% tax or 11,000
64. 2:42leaves. So Monkeykey's total tax would
65. 2:44be 15,800 leaves, not 22,000. Monkey
66. 2:50only pays 22% tax on that higher
67. 2:52bracket, not Monkeyy's entire income.
68. 2:55How is tax collected? If Monkey is an
69. 2:57employee, Monkey Government
70. 2:59automatically deducts leaves from
71. 3:01Monkeykey's paycheck. But if Monkey owns
72. 3:03a business or is a freelancer, Monkey
73. 3:06must tell Monkey Government how many
74. 3:08leaves they earned that year so they can
75. 3:10tax them the right amount. Monkeys must
76. 3:12prepare and file all this information
77. 3:15into a tax return. But how do you do a
78. 3:18tax return? It depends on what country
79. 3:20Monkey lives and works in, but the basic
80. 3:22process is the same. First, Monkey will
81. 3:24need to count how many leaves they made
82. 3:26that year. Monkeyy's job should do this
83. 3:29for him and send Monkey the total.
84. 3:31Second, Monkey needs to find out how
85. 3:33much tax he has already paid for that
86. 3:35year. Monkeykey's job will also keep
87. 3:37track of this. Then finally, the most
88. 3:38important step, deductions. These are
89. 3:41any workrelated expenses Monkey had to
90. 3:44buy for their job. No, no, no, no, no.
91. 3:46They they have to be workrelated. You
92. 3:48can't claim that. Give me it. I I said
93. 3:50give me it. Give me it.
94. 3:53Deductions can be uniforms, tools,
95. 3:56training courses, travel and
96. 3:58accommodation for business trips or
97. 4:01donations to charities. Then monkey
98. 4:03needs to send all this information to
99. 4:05the monkey government. They'll look at
100. 4:07how many leaves monkey make, how much
101. 4:09tax monkey owe, and deduct any
102. 4:11workrelated expenses monkey made. After
103. 4:14all these calculations, they'll give
104. 4:16Monkey the result. If Monkey has
105. 4:18underpaid tax, Monkey will need to pay
106. 4:20the rest of what they owe. But if monkey
107. 4:22has overpaid tax, the monkey government
108. 4:24will give them a tax refund. Tax audit.
109. 4:27If monkey makes any suspicious
110. 4:29deductions or has extra income they
111. 4:32didn't tell monkey government about,
112. 4:34monkey may get audited. A tax audit is
113. 4:36the monkey government double-checking
114. 4:38Monkeyy's information. They usually only
115. 4:40do this if something isn't adding up.
116. 4:42Okay, everything looks good here.
117. 4:44Nothing out of the ordinary. Wait a
118. 4:46second. What is that? What? Why is it
119. 4:49written so small? I can barely read
120. 4:50that.
121. 4:52But doing your taxes isn't easy and
122. 4:54sometimes monkey just make mistake. Uh
123. 4:58here I think it's right.
124. 5:02I forgot to carry the warranty. Please
125. 5:03don't send me to prison. Complete
126. 5:05insanity.
127. 5:07What happens if you don't pay taxes?
128. 5:09Nothing. Nothing at all.
129. 5:19First it's a warning. Then they'll
130. 5:20charge interest, which means monkey now
131. 5:23owes even more. Then monkey government
132. 5:24will try to forcibly take Monkeyy's
133. 5:26leave. And finally, if monkey still
134. 5:28won't pay, monkey government will take
135. 5:31Monkey to prison. In the USA, the tax
136. 5:33office is called the IRS or Internal
137. 5:36Revenue Silverback Gorilla. In
138. 5:39Australia, it's the ATO, the Australian
139. 5:42Taxation Orangutane. And in the UK, it's
140. 5:45the HMRC or Her Majesty's Revenue
141. 5:49Capuchin
142. 5:51[Music]
143. 5:53who doesn't pay taxes. But there are
144. 5:55some monkeys that don't pay taxes like
145. 5:58unemployed monkeys, employed monkeys
146. 6:00that don't earn enough, baby monkeys,
147. 6:02monkey charities, monkey religious
148. 6:04groups. However, almost every monkey
149. 6:07pays some kind of tax at some point.
150. 6:12how rich monkeys avoid high taxes. Rich
151. 6:15monkeys can do this in many ways. They
152. 6:17can own stock, property, or
153. 6:19collectibles.
154. 6:20And when they sell it, it's taxed as a
155. 6:22capital gain, which is less than income
156. 6:25tax. In fact, capital gains tax is only
157. 6:27around half as much tax as monkey pays
158. 6:30working regular monkey job. If monkey
159. 6:32owns stock in a company, and that stock
160. 6:34pays dividends, these are also taxed
161. 6:37less than Monkeyy's income. Rich monkeys
162. 6:39also get tax breaks on investments. This
163. 6:42is called negative gearing. If rich
164. 6:44monkey buys a treehouse, then monkey
165. 6:46rent treehouse to other monkeys. But
166. 6:48treehouse cost more leaves than it
167. 6:50makes. Monkey is losing leaves. But that
168. 6:52loss can be claimed as a deduction on
169. 6:54monkeykey's taxes. Monkey is hoping
170. 6:56value of treehouse goes up in the future
171. 6:58and one day he can sell it for more
172. 7:00leaves. But meanwhile, he pays less tax
173. 7:02because of the loss. Taxes in different
174. 7:05countries. Monkey businesses can also
175. 7:07set up companies in other countries with
176. 7:09little to no taxes. Not all monkey
177. 7:11countries pay the same amount of tax.
178. 7:13Some of the highest tax rates in the
179. 7:15world are Finland 57%, Japan 55%, and
180. 7:20Australia 45%. Hang on, I can do an
181. 7:23Aussie accent.
182. 7:25Oh yeah, now chuck another shrimp on the
183. 7:27barbie. Bloody hell, a dingo stole me,
184. 7:28baby. While some of the lowest taxes in
185. 7:30the world are the Cayman Islands, 0%,
186. 7:33Dubai, 0%, and Antarctica, 0%. But
187. 7:37that's mainly because no monkeys live
188. 7:39there. History of taxes. Since the
189. 7:41beginning, in the beginning in the
190. 7:43Benin, taxes have been controversial. In
191. 7:46fact, in the US during the early 1900s,
192. 7:50banana tax was a very real issue.
193. 7:52Importers argued that bananas should be
194. 7:55taxed as a necessity and not a luxury. I
195. 7:58don't want banana. Oh, okay then.
196. 8:00>> I need banana.
197. 8:01>> You're going to jail.
198. 8:02>> And in some parts of history, bananas
199. 8:04weren't taxed and were actually used to
200. 8:07bribe officials in exchange for special
201. 8:09tax treatment. How to make tax less
202. 8:12scary. This is not financial advice.
203. 8:13Please do not sue Monkey. If Monkey
204. 8:15wants to make taxes easier and avoid
205. 8:17accidentally going to prison, Monkey
206. 8:19should make a budget and track expenses
207. 8:21that could be taxdeductible. But if
208. 8:23monkey just wants to eat bananas, monkey
209. 8:26can hire Monkey tax accountant to help.
210. 8:28These monkeys help with tax returns. And
211. 8:30in some cases, their fees are
212. 8:32taxdeductible. There are only two
213. 8:34guarantees in life, death and taxes
214. 8:39and bananas.
215. 8:40[Music]
216. 8:42Hopefully monkeys now understand tax. If
217. 8:44monkey want to learn more about money,
218. 8:46check out Monkeyy's other videos. If
219. 8:48Monkey want to support art that isn't
220. 8:50godamn AI slot bull, check out Monkey
221. 8:53Patreon and get access to
222. 8:54behindthescenes content like this.
223. 9:00[Laughter]
224. 9:02It's just great. It's just fun.
225. 9:04>> And remember, apes together strong.
226. 9:12[Music]