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Old 01-10-2021, 05:53 PM   #9093
Mathgod
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Quote:
Originally Posted by #-3 View Post
If your intent on going after the universal programs this way, could you just lower the tax brackets for 1 year?

Not specific, just round numbers for ease;
Instead of 0% under $20K, do 0% under $17K.
Instead of 10% $20-$50k, do 10% $17-$47K
Instead of 15% $50-$100k, do 15% $47-$97K
......

Same effect, but simpler than adding a line to tax returns, and reminding people to claim it.
That would only cause people to pay slightly more tax on $3000 of income.

If you make every dollar of the covid relief cheque count as, say, $2.50 of taxable income, it would cause someone with a 40% effective tax rate to pay back the entire $2000. Someone with a tax rate above 40% would actually pay more than $2000 back into the system as a result of the adjustment (which is perfectly ok, considering there are folks who profited off the pandemic).

Last edited by Mathgod; 01-10-2021 at 06:00 PM.
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