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How does income tax work in the United States — and why does it confuse millions of people every year?
In this video, we break down the USA income tax system in the simplest way possible. You’ll learn how federal income tax, state tax, and payroll deductions work, who collects the tax, and how much Americans actually pay from their salaries.
We explain:
What federal income tax is
The role of the Internal Revenue Service (IRS)
Progressive tax brackets (why higher earners pay more)
Difference between federal tax, state tax, and local tax
Why tax is deducted before your salary reaches you
Common myths about the US tax system
Whether you’re a student, international viewer, or just curious about how America runs on taxes, this video gives you a clear, no-nonsense explanation.
📌 Perfect for: USA vs Europe comparisons, economics videos, finance explainers, and global tax system analysis.