Quote:
Originally posted by Mojo_PeiPei
I thought if you make below 17,000ish (the poverty line) no taxes are taken out? Or is it an issue of federal vs. state tax?
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I'm not going to quibble over the cut-off points because I can make my points with the numbers you're citing.
1) $17,000 per year is ~$1400 dollars per month. I don't know where you live but on the outskirts of Orange County (say, 30 minutes from the university here), California the average rent is $1400 (and that's not for a particularly safe or clean environment). Right here in Irvine the average rates are above $2000.
2) Even if such people don't ultimately pay taxes, the gov still removes it from their paychecks--and then returns it at the end of the year. This is, of course, after the person navigates through the tax form and/or pays someone to complete if for him or her.
The bottom line--there isn't any rational argument to be made that says people earning close to the "poverty line" can take care of themselves or a family. They get taxes taken out just like the rest of the American public--they just might get it back the following year.
BTW, your 17,000 figure would be based on someone making $8.75. That's a few dollars more per hour than minimum wage and approx 2 million people would be grateful just to be earning minimum wage right now. My wife makes $9 (her criminology and singing bachelors secured her a receptionist position) and she still pays about $80 per week in taxes. I'll know next year how much we get back but from the previous years I'm pretty sure we didn't get it all back.
We're able to provide for our needs because the school gave us graduate housing, pays my tuition, and gives me a salary. Her paycheck goes towards food and her school bills. I have a feeling that we are well off in this current climate.