A couple with two children earning less than $26,400 will pay no federal income tax this year because their $11,600 standard deduction and four exemptions of $3,700 each reduce their taxable income to zero. The basic structure of the income tax simply exempts subsistence levels of income from tax.
Friday, July 29, 2011
A SIMPLE ANSWER TO A SILLY BAGGER QUESTION
Baggers and gasbags are outraged that almost 50% of American income tax filers pay no Federal income tax. Now, I thought this was a simple example of income inequality in America but the Baggers seem to think that the top 2% are getting ripped off. Which one to believe? The Tax Policy Center did some analyses which support the first interpretation:
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