Quote:
Originally Posted by Derwood
what real system is in place that is an equivalent of "earn $100, taxed $100"?
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There are examples in this thread. Under our current tax code people face these choices constantly - where through the loss of tax credits and certain deductions an increase of a $100 in income could cost a person that $100 or more.
In many of these cases it involves working poor trying to get ahead - one day you are getting $$$ from government through a program, you earn some $$$ from work and the entire amount from government goes to zero because you no longer qualify. In this context you can argue a benefit from government is not a part of our tax system, I don't. For example you have a job paying taxes that in part supports our unemployment system, you then loose your job and start collecting - ifyou collect $200 per week, you won't take a job paying $100 per week until your benefit runs out.
"Rich" people have experts working on their behalf to find loop-holes and they have choices - they can manage their tax burden. Poor people do not have these experts and they don't have many choices - in some cases it is stay poor or get screwed. Much of this is thanks to liberals who think they are doing good but are not - and there are some liberals who know what they are doing and they just don't really care about the working poor, they just pretend to.
{added} There are better ways to do all of this. For example unemployment insurance - don't make it all or nothing, for low income people allow it to be a supplement to income they earn through work - allow them to get ahead, to save.