2 ms·
Right now in the US, the bottom limit on federal withholdings and filing a return is around 12k per year. If you make less than that, you don't pay income tax.
by betwixthewires 4y ago
Right now in the US, the bottom limit on federal withholdings and filing a return is around 12k per year. If you make less than that, you don't pay income tax. That needs to be doubled at least.
A big chunk of lower tier earners get all or most of their withholdings back and pay 0 tax, of course after an interest free loan to the treasury. Some of them even get money back for having kids and things, effectively a negative income tax. Those thresholds should probably rise as well.
All in all I don't think most people should be paying an income tax at all.