Quote:
Originally Posted by Just_the_facts
That's because some individuals who make 25,000 a year have children, which substantially reduces their income via additional personal exemptions, the child tax credit, and the Earned Income Tax Credit (assuming they are at least 25 years of age). Also, seniors who make 25,000 also receive significant savings via a higher standard deduction and a partial exclusion for Social Security income.
The facts are different for a single, childless person working 12 hour for 40 hours a week. Such a person would make 24,960 a year, assuming a 52 hour work week. The personal exemption is currently 3,900 and the standard deduction for a single filer is 6,100. What this means is that such a person would have to pay taxes on 14,960 of income at a federal income tax rate of 10%. That is in addition to FICA taxes.
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Yes, but I'd say when 1/2 the nation pays an average of $.01 a year in total income taxes, that isnt enough.. I know, I hate the poor.. everyone knows that..
But I also support removing deductions so people like me, who gross somewhere in the neighborhood of 8 figures, (thats gross, not net), has less incentive to make sure their businesses have a negative net profit a year, thus reducing my tax liability to $0 as well. I make lots of effort to make sure my businesses lose money every year so I dont have to pay taxes.
We need to broaden the tax base, not raise the rates, and that goes along all income segments.