Quote:
Originally Posted by maleficent
Looking at it briefly I'd say that it's only a good idea if you've opted to pop out a few tax deductions or are married to a tax deduction... Single people get shafted and seem to carry more of the tax burden.
The tax free burdon for a family is only 760 at 25,000 - then it goes up to 24,200 and stays there, the tax free burden for a single person is 8,980 and stays that amount no matter what their salary level is. It seems to be an unfair burden on those at the poverty level that hasn't popped out some tax deductions.
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Although the pie charts are intended to make the plan look simple, there seems to be quite a lot going on behind the scenes here. When comparing an individual with a family, you can expect the individual spending the same amount as a family of 4 as having a richer life.
A family of 4 spending 25k a year is far different from an individual spending 25k a year.
Looking at the pie charts, it appears that the higher you go in spending, the more likely the family of four assumes that the spending is equivalent to two individuals. Tax requirements for a 100k for a family of four is nearly equivalent to the tax requirements of 2 individuals spending 50k. 1000k for a family of four, 2 individuals spending 500k.
I believe the tax requirements for an individual spending 12.5k is a negative amount. From that perspective, the family of four spending 25k is being over burdened.