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my calculations might be incorrect but is the prebate at federal poverty level usually less generous than the current system? Two people, married filing joint
by mister_tee 5y ago
my calculations might be incorrect but is the prebate at federal poverty level usually less generous than the current system?
Two people, married filing joint status: currently $25k standard deduction. Current FPL for two: $17.4k. I picked a couple with no kids because the higher refundable child tax credits just started and raise the bar for where federal income taxes start on a family of four (nb: they pay many other taxes: state, FICA, sales, property...)
There is a talking point from some on the right that 47% of US households pay no federal income tax that also makes me think this could be a net negative for many.
- Jtsummers 5y agoProbably. I only meant that it helped for this tax to make it slightly progressive (the very low end) because they’re emote likely to spend everything and so the prebate has a major impact on their effective tax rate. I didn’t do the math to see how it compares to the present system overall.
- mister_tee 5y agosorry, I was questioning this aspect of the system rather than your post. I'm definitely not a tax expert but this seems like a raw deal for middle class and below... not to get too political but we can also look at which groups design and support proposals like this.