Who Do Tax Breaks Benefit?

The video discusses how the US tax code, particularly deductions, primarily benefits wealthy individuals. It uses hypothetical families to illustrate the impact of standard deductions, charitable contributions, and mortgage interest deductions on different income levels. The video highlights that while deductions incentivize certain behaviors like charitable giving and home buying, they disproportionately favor the rich, leading to less tax revenue for public services.

What is the primary purpose of the standard deduction in the US tax code?

• To provide tax breaks for businesses

• To simplify the tax filing process

• To increase government revenue

• To encourage charitable donations

Which family benefits from charitable contribution deductions according to the video?

• Family in the top 10% income bracket

• Family in the top 1% income bracket

• Family earning $59,000

• Family earning $35,000

How do charitable contribution deductions affect government revenue?

• They reduce government revenue

• They have no impact on government revenue

• They only affect state taxes

• They increase government revenue

What is the intended purpose of the mortgage interest deduction?

• To increase property taxes

• To reduce housing prices

• To encourage people to rent homes

• To incentivize home buying

Which income group benefits the most from the mortgage interest deduction?

• All income groups equally

• Low-income families

• Middle-income families

• High-income families