Quote:
Originally Posted by EldrickOnIce
If you eliminated federal income tax for any individual earning less than X, family earning less than Y it would be interesting. No VAT/GST. Put more money in the hands of low earners and they will spend it. Drive the economy. Give people some spending power who currently have none.
This would never happen in America
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That first part is already in place, although pretty low levels. The first 14,600 is tax free for singles, and 29,200 for Married couples. Add in the refundable tax credits for children and most families aren't paying any federal income tax up to about $50k. And some will get money at tax time from EIC refundable credits.
Some of the low income tax talked about here doesn't factor in everything. Middle class-upper middle class in VA will end up paying about 35% when you add up Federal income tax, State income tax, and the 2 federal payroll taxes. With the removal of SALT, middle income earners in states with state taxes ended up paying quite a bit more federal income tax with Trump's tax "cuts" last time around.