taxation

[classicman]

just to bitch a bit (taking the heat off Clod )




I wish it were that simple. In some cases it is... in many it is not.

What happens when the standard deductions and child credits and EIC and a host of other deductions are added, especially to that person at the bottom? They actually get money back. In some/many/most (???) it is more than they put in. I know this from personal experience. Effective tax rate??? Its a negative - They actually make money.

[Happy Monkey]

Originally Posted by classicman

I wish it were that simple. In some cases it is... in many it is not.

What happens when the standard deductions and child credits and EIC and a host of other deductions are added, especially to that person at the bottom? They actually get money back. In some/many/most (???) it is more than they put in. I know this from personal experience. Effective tax rate??? Its a negative - They actually make money.

That's a separate issue from how tax brackets work. And even the "Fair Tax" folks support continuing that; they propose giving everyone a check every month as a sales tax "prebate", which is similar to the tax credits that can result in a negative income tax rate for the poor.

[infinite monkey]

Originally Posted by Happy Monkey

That's a separate issue from how tax brackets work. And even the "Fair Tax" folks support continuing that; they propose giving everyone a check every month as a sales tax "prebate", which is similar to the tax credits that can result in a negative income tax rate for the poor.

*bold mine

No, not just the 'poor'. Not by a long shot.