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Correct, most of the US does not make enough money to need to pay taxes. This proposal would actually decrease that number, because receiving $300k in one year
by aamoscodes 4y ago
Correct, most of the US does not make enough money to need to pay taxes. This proposal would actually decrease that number, because receiving $300k in one year (if we tax it as income) means you will need to contribute taxes that year...maybe they can even use part of their net earnings to contribute $60 to the fund, so someone else will have enough money to pay taxes the following year.
- sokoloff 4y agoOne positive aspect of this is that, assuming we taxed these payments as income, it would reduce the deficit by around $2.5B/yr, or around 0.1% of the deficit.
- aamoscodes 4y agoPayroll tax currently caps at $147k, if we remove that limit it would reduce that deficit even further. This theoretical giveaway policy is a drop in the bucket compared to many other tax policies that exist right now.