Quote:
Originally Posted by Hollytree
You're confusing me. How are they subsidizing the middle class (most high income have zero mortgage) through taxes? The taxes are already written to favor low income people. 45.3% of American households — roughly 77.5 million — pay no federal individual income tax. The low income (under 30k) and the very high income (who have tax lawyers) pay the least in taxes. Many other low income already get various subsidizations, such as food stamps, etc.
And, some states, NY I believe, offer renters a special tax deduction.
You call yourself freemkt-I assume you mean free market capitalism, although our system is a mix of capitalism and social welfare programs. The middle class who work hard and buy homes have a higher net worth. Should they be discouraged or taxed more heavily for their effort?
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I earn minimum wage and I pay federal income tax. Certainly I am NOT in the top 45.3% of American households, so why am I paying federal income tax?
The federal income tax has a "zero bracket amount" because Congress understands that there is a basic minimum needed for subsistence, and income below that level should not be taxed. (Having said that, EITC is a giveaway program for parents and badly needs reform.
Most state income taxes kick in well below poverty level, and most low earners pay more state income tax than they pay federal income tax.
Liberals howled that the Bush Tax cuts were tax cuts for the rich - actually they were tax cuts for PARENTS. THAT is why so many Americans don't pay federal income taxes. A childless adult working full time at minimum wage pays about $500/yr in federal income tax.
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