2006-12-13 06:24:14 · 3 answers · asked by RONALD J 1 in Business & Finance ➔ Personal Finance
the inland revenue pay you to go to work, essentially tax back.
2 types, working tax credit (families with two low incomes.
child tax credit (money back for having a kid.
good for those on low incomes with no possibility of attaining more than NMW.
Bad as an income trap for those wanting to break out into higher paid jobs
2006-12-13 06:28:16 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Basically, a way for politicians to buy votes.
They decide who is living their personal lives in the way that the government sees fit, and then the government gives those good little boys and girls a deduction on their taxes. It's like Uncle Sam is saying that you already paid $1000 (or whatever amount) of your tax liability for the year.
Buy a house? Here's some of your neighbor's money. Get married? Here's some more of your neighbor's money. Have children? Here's even more of their money.
If you haven't heard of it, check out the fair tax. It's a simple tax on purchases that is absolutely fair to everyone. EVERYONE gets a rebate based on the basic cost of living. If you spend more than that, you pay taxes that will amount to less than you're paying now.
How can that work? There are currently tons of people who pay no or very little taxes. You know: drug dealers, hookers, mobsters, people who work "under the table", etc. Under the fair tax, every time they buy something, they will finally be paying their fair share.
www.fairtax.org
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2006-12-13 06:31:24 · answer #2 · answered by FozzieBear 7 · 0⤊ 1⤋
a reduction in tax liability which could be more than the tax owed (negative tax liability)
2006-12-13 06:30:17 · answer #3 · answered by CPAKeith 3 · 0⤊ 0⤋