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That's social security, different from taxation. There is no fundamental reason the numbers used to calculate owed taxes from should be the same ones used wheth
by roel_v 14y ago
That's social security, different from taxation. There is no fundamental reason the numbers used to calculate owed taxes from should be the same ones used whether one gets food stamps (this reply counts for both replies to the GP, no need in me making the point twice :) )
- rdl 14y agoYeah, there are some weird incentives if married. If one spouse makes $1mm/yr, it makes less sense for his wife who makes $0 to earn any marginal income than it would for a single woman to do so, since the first $0-10k of her own income will be taxed at a very high (~55% in California) marginal rate. This has real consequences when people divorce -- since it's so disincented for one partner to work while married, professional skills are likely to have atrophied. There are also social/psychological/etc. issues why more equal incomes make more sense.
- philwelch 14y agoIt's not net disincented, half of a professional salary is nice walking around money if you already have living expenses covered.
- philwelch 14y agoI guess that's a valid point. Though it would be an issue if there were a negative income tax.