Quote:
Originally Posted by Rick Lee
By my rough math and Google search, the max EITC for 2011 for family of four is $5112. In looking at the IRS tables, to have that kind of tax liability, your taxable income would have to be $38k. Back out the two personal exemptions of $3700 per adult and child tax credits of $1000 per child and you can gross that income up another $9400. So that means $47,400 in gross income for two earners with two kids before they pay dime one of fed. income taxes. Anything less than that and you're getting more EITC back than you paid in taxes, i.e. welfare. $47,400 divided by two earners is $23,700. Assuming 40 hrs. per week, 2000 hrs. per year, that means you have to earn more than $11.85 per hour before you pay dime one of net fed. income taxes. That's more than any state or fed. min. wage.
I'm pretty sure that kind of income level qualifies for plenty of non-taxable assistance from various fed/state/local agencies too.
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Then Matt's idea of promoting spending via tax cuts is irrelevant to anyone earning minimum wage or anywhere close to it -- they don't pay tax anyway. Am I interpreting this right?
So even at $11/hr minimum wage we wouldn't be collecting more taxes, just cutting business profits so we'd collect LESS taxes at the same tax rates?