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Poor People Overtaxed?

Discussion in 'Issues Around the World' started by RRedline, Jan 11, 2003.

  1. RRedline

    RRedline Veteran MMember

    I just got done helping my neighbor file her 2002 federal income tax return(with TurboTax). Not surprisingly, she is getting MORE than what she had withheld from her salary back as a refund. This is mainly due to the fact that she has a child that she can claim. Now, she is not poor by any means, at least not in my opinion. Her gross income for the year was around $26,000 which may not sound like much to many of you, but the cost of living here is rather low. In fact, according to the most recent census figures, the median HOUSEHOLD income in my ZIP is only $27,500!

    So here's my question. Why is it that a single person with no children who earned the same salary that she did has to pay about $2,600 in federal taxes, but because she has a child, my neighbor not only is expempt from paying taxes, but she actually gets PAID with federal tax dollars pretty much just because she has a child? Is this fair?

    So why do "poor" people who have children complain about federal taxes? Do they want even MORE free money from other tax payers like me? I am finding it very difficult to understand why people say that poor families are overtaxed. Are they even taxed at all?

    By the way, my neighbor's tax liability for 2002 was -1.6%. And yes, she bitched about taxes the whole time. She doesn't get any child support for her child because she has no idea who the father is(why she told me this...I just don't know), but the way I see it, she does get about $250 per month in child support - from Uncle Sam.
  2. ethics

    ethics Pomp-Dumpster Staff Member

    Some great questions there. I am curious to some of the answers given our diverse political and class membership. I'd love hearing it from both--all-- sides. :)
  3. Copzilla

    Copzilla dangerous animal Staff Member

    When Ken was active here I was trying to explain this very thing to him. That it's kind of hard to lower the tax burden on the poor when A) they're not paying taxes and B) you're giving them a tax return on taxes they didn't even pay at all.

    How can you lower that even further? Makes no sense.
  4. Coot

    Coot Passed Away January 7, 2010

    It does make sense to them. They would have the federal government (us) subsidize their livelihoods even further, to the point that they live on par with people who were certainly not born 'rich', but took it upon themselves to get ahead in this world through hard work and by taking advantage of the opportunities available in this country.

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