Republicans want to raise taxes on low income wage earners and the elderly

President Barack Obama wants to extend a tax beak to low income Americans.  This policy helps the 46 percent of all Americans who owe no federal income taxes but who pay the FICA "payroll tax" on practically every dime they earn.

FICA funds both Medicare and Social Security. 

Republicans say their position will spur employment and lend greater certainty to the economy.

"It's always a net positive to let taxpayers keep more of what they earn," says Rep. Jeb Hensarling, "but not all tax relief is created equal . . ."

As Rightardia has pointed out many times most US taxes are flat or regressive. Municipal taxes such as sales tax and property taxes are flat. The FICA tax is also flat but the Social Security part is even more regressive because it lets the affluent off the hook after they earn $107,000. 

Who are these people who don't pay federal income tax? A Tax Policy Center report report indicates there  are primarily three different groups. The report also indicates the 46 per cent figure is atypical because of the bad economy. 


First, there are those whose incomes are too low to have a tax liability. The second group is the   elderly, or the last group is those who benefit from tax credits for working families. 


A full half of all Americans don’t pay federal income tax because their incomes are so low. 


The Republicans whine about income tax because it is one of the few progressive taxes in the federal government. where do most of these low income earners live? That would be the Red States. 



source: http://news.yahoo.com/


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