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The purpose income tax’s per capita deduction from taxable income is to decrease income taxes upon lower income earners and their families. Most of us would agree that’s a worthy purpose.
The progressive income tax rates purpose is to some extent increase higher income taxpayers’ contribution to government’s tax revenue and thus to some extent also increase the portion of lower earners’ after-tax incomes. [I agree with those believing progressive taxation’s mischief is the underlying cause for many of our less populists, more inequitable and complex tax regulations].
Due to progressive tax rates, the per capita tax deduction is of greater benefits to higher income earners and of lesser amounts of benefits to lower income earners. Many taxpayers’ incomes are too low to completely benefit from the lesser per capita benefits they're otherwise entitled to. Our current drafting of this regulation less effectively promotes democratic populism and its purpose (to decrease income taxes upon lower income earners and their families). The families, (particularly the children) of lower income earners suffer more (than other earners) due to financial needs.
If the per capita benefit were a tax credit rather than a deduction from taxable income deduction, it would greatly remedy these faults. Due to the changing purchasing power of the U.S. dollar, such a modification of regulations would become increasingly less effective if the per capita benefit is not cost of living adjusted, (similar to social security’s COLA).
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The U.S. Congressional Budget Office would determine the initial per capita dollar amount that would enable this proposal to qualify as effectively revenue neutral over a decade’s duration. Due to such a qualification, the congressional act’s passage would require only a simple rather than a super majority plurality.
This proposal’s would not significantly improve our nation’s economy. It would be both an economic and social improvement with no significant down side.
Respectfully, Supposn
The progressive income tax rates purpose is to some extent increase higher income taxpayers’ contribution to government’s tax revenue and thus to some extent also increase the portion of lower earners’ after-tax incomes. [I agree with those believing progressive taxation’s mischief is the underlying cause for many of our less populists, more inequitable and complex tax regulations].
Due to progressive tax rates, the per capita tax deduction is of greater benefits to higher income earners and of lesser amounts of benefits to lower income earners. Many taxpayers’ incomes are too low to completely benefit from the lesser per capita benefits they're otherwise entitled to. Our current drafting of this regulation less effectively promotes democratic populism and its purpose (to decrease income taxes upon lower income earners and their families). The families, (particularly the children) of lower income earners suffer more (than other earners) due to financial needs.
If the per capita benefit were a tax credit rather than a deduction from taxable income deduction, it would greatly remedy these faults. Due to the changing purchasing power of the U.S. dollar, such a modification of regulations would become increasingly less effective if the per capita benefit is not cost of living adjusted, (similar to social security’s COLA).
///////////////////////////////////////////////////////////
The U.S. Congressional Budget Office would determine the initial per capita dollar amount that would enable this proposal to qualify as effectively revenue neutral over a decade’s duration. Due to such a qualification, the congressional act’s passage would require only a simple rather than a super majority plurality.
This proposal’s would not significantly improve our nation’s economy. It would be both an economic and social improvement with no significant down side.
Respectfully, Supposn