How Do You Give a Tax Break to Someone Who Pays No Taxes?
Whenever the Republican’s talk about or pass a tax break we always hear from the left that these tax breaks are going only to the wealthy.
Let me ask you a very simple and common sense question; how do we give a tax break to someone who pays no taxes?
As I stated it is a very simple and easy question to ask and understand.
Why am I asking that question, because once again the left is stating that the latest tax reform bill only gives tax breaks to the boogie man, the “rich”.
Let me first inform you that the 2018 individual tax rate has become the largest single source of U.S. revenue according to estimates from Congress’s Joint Committee on Taxation. For 2018, it could raise 50% of total federal revenue up from about 48% last year.
The results of their study show how steeply progressive the United States income tax system is. They found the following:
For 2018, households in the top 20% will have income of about $150,000 or more and 52% of total income, about the same as in 2017. But they will pay about 87% of income taxes, up from about 84% last year.
The top 1% and 0.1% of taxpayers will see their share of income taxes rise in 2018.
By contrast, the lower 60% of households, who have income up to about $86,000, receive about 27% of income. As a group, this tier will pay no net federal income tax in 2018 vs. 2% of it last year.
The numbers are what the number are, there is no spinning them. Again I ask you if the lower 60% of American households, those who have income up to approximately $86,000, who file a Federal Income Tax Return pay zero Federal Income tax then how do we give them a tax break?
In fact according to Robertson Williams, an income-tax specialist with the Tax Policy Center:
the share of taxes paid by the top 5% will rise despite the fact that people in it were the largest beneficiaries of the overhaul’s tax cut, both in dollars and percentages
It does not stop there though, according to this study there will be 77 million American household who are in the bottom two tiers of the income brackets they will actually have a negative tax rate. That means they will actually receive a refund from us that is larger than the amount of Federal taxes they paid, in my books that is plain and simple welfare.
How are they going to receive a negative tax rate, according to the study:
In recent decades Congress has chosen to funnel benefits for lower earners through the income tax rather than other channels such as federal programs. Some of these, such as the earned-income tax credit for the low-income workers, make cash payments to filers who don’t owe income tax.
Why is this important to know, because it dispels all of the left’s argument that the lower income brackets did not get a Federal Tax cut.
Also how are we supposed to run a country when such a large amount of citizens have no skin in the game and are essentially getting a free ride from others who must pay Federal Income tax?