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But instead, we have "child tax credit" that is the same thing because $1000 is 14% of $7,000
But politicians rather keep the tax system complicated so they can keep on screwing us over.
The common argument against progressive tax rates seems to be that many think lower income people get treated different. Im not the greatest explainer of things, and hopefully those who are will chime in. But I see man false hoods that are taken as fact, and would like to help bring more facts to this debate
The main thing Id like to discuss is how the tax rates are progressive but yet,IMO, fair. For example:
Tax Payer A make $50K a year and is taxed at 15% (guessing what the rate is)
Tax Payer B makes $500K a year. His first $50K is taxed at the same rate as person A.
So why is it so many people seem to think tax payer A has some kind of unfair tax advantage over Tax payer B.
The people at the top pay such a higher share of taxes mainly because they make such a higher a share of the income.
Generally you are correct when talking about agi. There are exceptions but as a general concept you are on the right track
Tax policy does not intend to equalize tax burden but it does seek to keep the inequalities under control. To understand what's going on, you have to recognize that the last dollar earned by a rich person is worth less to him than the last dollar earned by a poor person. While it's de facto impossible to compare the utility functions of two individuals, it can be shown that social utility would call for proportionately more tax dollars to be taken from the rich person than from the poor person. This in a nutshell is why we have a progressive federal income tax. The point again is not to equalize tax burden, just to keep variations within defensible ranges.
LOL! The AMT affects everyone. Everyone owes the higher of taxes calculated on a 1040 basis and on a 6251 basis. Meanwhile, your $82,100 is the new amount of the AMT exemption. That alone says exactly nothing about whether your 6251 tax will be higher than your 1040 tax. Anyone who's ever needed to calculate tax on Form 6251 would be expected to know that.
Do you know what a quintile is? Do you know where the bottom one by income would be found?
1) The total amt of AMT I have paid over my lifetime is zero.
2) The bottom income quintile would be found largely in the 'hood.
Any living wage for a family would need to be enough to assure that all family members could in fact live. Thus it would need to cover all required expenses for food, shelter, clothing, health care, transportation, child care, taxes, and various other such things. The estimated pre-tax living wage for Newcastle County, Delaware (chosen at random) is $28.02 per hour for a family of two adults and three children, where only one adult works. If both adults work, the wage would need to be $36.64 per hour in order to cover added taxes and child care costs.
When someone chooses to take on additional responsibility, they should make sure they can afford it. It is not well-advised for a 15 year old child making minimum wage to have children to support. It's not economically feasible. However, wages are not the only source of funds to raise a child. Grandparents, inheritance, and other options exist. People make it sound so bad to have extended families living together were taking care of young ones is a shared responsibility. For centuries, this has proven to work. More people living in a home with adults spread across multiple career maturity levels has created generations of productive young adults in countries around the world.
Round and round you go. Liberals believing higher taxes will make poverty go away. Yep, through how many presidents and poverty still exist. News flash... poverty will always exist no matter how much government raises taxes.
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