I figure my time on Earth, at 71, is worth about $50 an hour to me. If I bend over to pick up a penny it takes about 30 seconds. That translates to about 42 cents of my valuable life's energy. So that endeavor puts me 41 cents in the hole. But if it works for you who am I to quibble......
You are correct that most of these credits go to low and middle class income taxpayers. However the income range to qualify is all over the map. For instance the child tax credit is available to taxpayers with incomes well over $100,000 whereas the earned income tax credit (EITC) and retirement savings credit phase out at much lower incomes.
Ben's statistics are correct. In fact the top 50% pay 97.7% of all federal tax collected. I suspect that state income tax collected would be similarly skewed towards the top 50%, assuming we're talking about states that have an income tax. Income taxes are progressive while sales tax is not and thus imposes a greater financial burden on the bottom 50%. The EITC was designed as an incentive to encourage work, anyone who would limit their income just to collect this credit is doing themselves a grave disservice.
Comments
You may get what you PAY for.
Post: Fishing for Feedback
Link to comment from April 21, 2025
A little research reveals that you are correct, as of this year. In prior years the data was entered into a computer by hand.
Post: Now it’s over, taxes are filed, but I have a question. How did prepare your your taxes?
Link to comment from April 19, 2025
Not just North Carolina until May 1st, the same extension applies also to South Carolina and Georgia.
Post: An easy way to file a tax return extension due today
Link to comment from April 17, 2025
Paper return data has to be entered into IRS software by an IRS employee, now exposing your return to data entry error.
Post: Now it’s over, taxes are filed, but I have a question. How did prepare your your taxes?
Link to comment from April 17, 2025
I figure my time on Earth, at 71, is worth about $50 an hour to me. If I bend over to pick up a penny it takes about 30 seconds. That translates to about 42 cents of my valuable life's energy. So that endeavor puts me 41 cents in the hole. But if it works for you who am I to quibble......
Post: Change is good – and profitable
Link to comment from April 13, 2025
Go for it!!
Post: The Comeback
Link to comment from April 10, 2025
"Things are different now". Isn't' that what is said every time there's a shake up in the market.
Post: I’m concerned about the stock market. How concerned are you? Jonathan, any comforting words?
Link to comment from March 29, 2025
You are correct that most of these credits go to low and middle class income taxpayers. However the income range to qualify is all over the map. For instance the child tax credit is available to taxpayers with incomes well over $100,000 whereas the earned income tax credit (EITC) and retirement savings credit phase out at much lower incomes.
Post: Yup, most usable, needed tax breaks go to average/middle class Americans.
Link to comment from March 18, 2025
Absolutely correct.
Post: Care to join me on my yacht cruising the Mediterranean? Do you envy the super wealthy? RDQ
Link to comment from March 18, 2025
Ben's statistics are correct. In fact the top 50% pay 97.7% of all federal tax collected. I suspect that state income tax collected would be similarly skewed towards the top 50%, assuming we're talking about states that have an income tax. Income taxes are progressive while sales tax is not and thus imposes a greater financial burden on the bottom 50%. The EITC was designed as an incentive to encourage work, anyone who would limit their income just to collect this credit is doing themselves a grave disservice.
Post: Should all Americans pay federal income tax? By Ben Rodriguez
Link to comment from March 17, 2025