Inevitable, on a daily basis, several Y!A users are bemoaning tax cuts for the rich and crying "what about the poor?!" So....
Lower income people, especially those with children, frequently get back more than they pay in. If you take deductions and tax credits into account, a single mother could pay $1,000 in federal income tax withholdings throughout the year, but get a $3,000+ refund. $2,000+ more than she even paid in. Likewise, a college student using education tax credits could also get more refunded than paid in. Etc. Etc.
America's biggest tax consumers are also America's worst tax contributors.
So the question is, how do you cut taxes for a group of people that have NO effective tax rate? How do you cut taxes for a group of people that pay NO taxes and in fact profit from income tax every year?
2007-10-05 02:05:06 · 9 answers · asked by Chad 5 in Politics & Government ➔ Politics
I'm a liberal, but I'll tell you many of the poor..DON'T PAY INCOME TAXES.
I'm serious, the bottom 20% of the tax payers make so little, they don't pay income taxes due to child credits, etc.
The idea of cutting taxes, for the poorest of Americans, makes no sense what so ever.
2007-10-05 02:09:19 · answer #1 · answered by Villain 6 · 3⤊ 1⤋
Most people in the lower income brackets do not pay income taxes, in fact a lot of them are "paid" by the government to work, it's called EIC, Earned Income Credit, I was on it when I was a single mom. I got back A LOT more every year than I ever paid in to income taxes.
2007-10-05 02:18:21 · answer #2 · answered by Princess of the Realm 6 · 1⤊ 0⤋
Wait a minute, so are you saying people that work flipping burgers, cutting grass, changing triers, table servers, casino worker and so on are getting under payed, well your correct!!!
Tax cut for the poor,
How about income tax and all other taxes be collected at the current rate after a single or married couple has made $100,000.00 and the earned income credit be set at $70,000.00 and the people that work for still has to put in for S/S & Medicare.
Tax cut for the rich, the most rich
You do understand that when the president give a tax break to the most rich, he is in turn giving himself a tax break. You do understand that right!!!
You do understand that it is the rich congress that passes laws not the poor people working people. You do understand that right!!!!!!
2007-10-05 02:29:10 · answer #3 · answered by man of ape 6 · 0⤊ 1⤋
I think most people are unaware of the negative tax bracket at certain income levels. You are right. The lower income working poor, as they are called, don't pay any income tax. They benefit from the earned income credit, the negative tax.
Consideration should be made for tax relief at the middle income tax levels, however.
2007-10-05 02:12:36 · answer #4 · answered by Overt Operative 6 · 3⤊ 0⤋
You give them more free stuff, like health care, welfare, free school lunch, pay their electric bill, pay their home heating, and rent or housing assistance. This effectively gives them more money that you redistributed from tax payers that are paying in at a much higher rate. We call this the Hillary Plan, a system of rewards for non success and punishment for those that do succeed.
2007-10-05 02:12:58 · answer #5 · answered by libsticker 7 · 4⤊ 0⤋
You are correct that filers below a certain income level can get back more than they paid in. It is called Earned Income Credit.
I suppose their taxes could be cut by paying them even more not to work. (btw I am NOT in agreement with this!)
2007-10-05 02:20:10 · answer #6 · answered by Anonymous · 1⤊ 0⤋
You can't, and by cutting taxes for higher income people you cause the economy to grow and help the poor!~!
2007-10-05 02:11:02 · answer #7 · answered by Anonymous · 2⤊ 1⤋
you have a good question but I know one thing the Democrat will find a way they will have to for the universal health care they want!!
2007-10-05 02:09:27 · answer #8 · answered by Anonymous · 3⤊ 1⤋
You can't, they pay no taxes.
2007-10-05 02:09:50 · answer #9 · answered by Bob J 5 · 2⤊ 1⤋