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Old 11-04-2010, 06:35 PM   #10
scottw
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Quote:
Originally Posted by stcroixman View Post
33% is a nice way to spin it. Fact is the 10% bracket ends around 20K of taxable income (after deductions). So it's a 5% savings on 20K = $1,000.

Lets' compare that to the decrease in top bracket from 39.6% to 35% on someone with taxable income(after deductions) of 250K per year. So it's a 3.6% savings on 250K =$9,000.

Now tell me who benefits from this and why is someone with 20k of taxable income paying any tax?
someone with 20k of taxable income is probably not paying federal tax and potentially getting a tax "bonus" back through the EITC...if for any reason they are not, we should just take some of the income that "the 'rich' don't spend" because they don't "spend as much of their income, so they don't need it"...and just give it to whoever needs it

The Tax Foundation - The Potential Impact of Expiring Tax Cuts on Low-Income Taxpayers
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