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I just looked up at what income level you start paying taxes and it is between $5 & $15.
Which basically means, for a typical family of four (the nuclear family of today), the following math is applicable:
Standard deduction: $11,400
Exemptions: $14,600
Total deductions: $26,000
This basically means that a family of 4, making an income of less than $26,000 has no tax liability. The figure is actually higher than this because of the child tax credit and assuming both children in this scenario meet the definition to qualify for the child tax credit, the result is no actual taxes would be paid until they reach an income of $36,000.
Now that is slightly higher this year due to "making work pay" tax credit.
In the end, a family of 4 will start to have an actual tax liability, somewhere in the 39-42K range.
So the true problem you have pointed out here is not covered in this thread, and it is:
How can the richest most prosperous nation in the world have 47% of it families, below such modest income levels?
If you look at it that way, it kinda takes the wind out most of the arguments on this thread in my opinion.
Memphis1979, thanks for calling like it is
You forgot the Earned Income Tax Credit, the big scam.
I just looked up at what income level you start paying taxes and it is between $5 & $15.
Which basically means, for a typical family of four (the nuclear family of today), the following math is applicable:
Standard deduction: $11,400
Exemptions: $14,600
Total deductions: $26,000
This basically means that a family of 4, making an income of less than $26,000 has no tax liability. The figure is actually higher than this because of the child tax credit and assuming both children in this scenario meet the definition to qualify for the child tax credit, the result is no actual taxes would be paid until they reach an income of $36,000.
Now that is slightly higher this year due to "making work pay" tax credit.
In the end, a family of 4 will start to have an actual tax liability, somewhere in the 39-42K range.
So the true problem you have pointed out here is not covered in this thread, and it is:
How can the richest most prosperous nation in the world have 47% of it families, below such modest income levels?
If you look at it that way, it kinda takes the wind out most of the arguments on this thread in my opinion.
Memphis1979, thanks for calling like it is
Richest nation on earth?
We don't have the highest standard of living that's for sure
Obama held true to his word. God bless the man. Can't wait to hear how the teaparty advocates react to this.
God bless him for what?
What has he done other than transfer huge sums of tax dollars to international bankers and push a health care bill written by insurance companies for benefit of insurance companies?
Wait until you or one of your family members cannot get the medical care, tests or treatments they need.
Just remember that when it happens.
Then you'll see how foolish your Obama worship is.
I believe the minimum taxable income should be at the 85th percentile or around 10 times the 24 grand. The rest should be taxed on an all income from all sources ibase n a logarithmically increasing rate.
I saw that headline on Drudge. While I think it's good that people get to keep more of their money, every American who is able to, should be paying something into the federal government, even if all it consists of is their own social security and medicare taxes.
I just looked up at what income level you start paying taxes and it is between $5 & $15.
Which basically means, for a typical family of four (the nuclear family of today), the following math is applicable:
Standard deduction: $11,400
Exemptions: $14,600
Total deductions: $26,000
This basically means that a family of 4, making an income of less than $26,000 has no tax liability. The figure is actually higher than this because of the child tax credit and assuming both children in this scenario meet the definition to qualify for the child tax credit, the result is no actual taxes would be paid until they reach an income of $36,000.
Now that is slightly higher this year due to "making work pay" tax credit.
In the end, a family of 4 will start to have an actual tax liability, somewhere in the 39-42K range.
So the true problem you have pointed out here is not covered in this thread, and it is:
How can the richest most prosperous nation in the world have 47% of it families, below such modest income levels?
If you look at it that way, it kinda takes the wind out most of the arguments on this thread in my opinion.
Memphis1979, thanks for calling like it is
Have you looked at the EITC and how it effects the calculation? I know a fellow engineer with a middle class income, modest mortgage deduction and 2 kids got more back than he put in.
Have you looked at the EITC and how it effects the calculation? I know a fellow engineer with a middle class income, modest mortgage deduction and 2 kids got more back than he put in.
As an Engineer, I would expect your friend is very underpaid or has a very creative accountant
Assuming I have calculated my math correctly, a family of 5; married filing jointly with 3 children under 17 for the entire year will not pay any taxes until they earn and AGI of more than $53,650
For a family of 4, 2 adults & 2 kids it is around $42,100, and in this case EITC would give them a small return around 700 bucks.
You have to look at the math close, but most families are not going to be paying taxes till well in the 40K to 50K range.
Obviously their are variables, but that is fairly close.
Just remember this, a qualifying child for the "child tax credit" is one that has not reached the age of 17 during the tax year. That's funny, mine did not get cheaper by any stretch when they turned 17, hell I am quite positive the cost went up drastically about that time
It's been so long since I was able to do EIC I can't accurately tell you what a "qualifying child" is in its determination.
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